KOTRA Selected as Korea's
Representative for PSLO

Gov't to provide support for Korean firms'expansion in the global procurement market

The World Bank has signed an agreement with KOTRA on appointing the latter as the Korea representative of the Private Sector Liaison Officers (PSLO).
Among those present at the signing ceremony held at the Shilla Hotel in Seoul on May 5 were Paul D. Wolfowitz, president of the World Bank, Chung Sye-kyun, minister of commerce, industry and energy, Hong Ki-wha, president of KOTRA.
PSLO disseminates information on procurement projects approved by the World Bank and seeks ways to increase participation.
The Network of Private Sector Liaison Offices to the World Bank Group (WBG) was established in 1999 by the World Bank, IFC and MIGA to better communicate with, and better engage in the private sector in the WBG's missions and program.
Currently, 53 institutions in 41 countries serve as the representatives of PSLO
With KOTRA becoming the Korea representative of PSLO, Korean companies are more likely to actively participate in projects to assist developing countries.
The competitive portion of the global procurement market is estimated at approximately $2.2 trillion, accounting for 30.1 percent of global trade volume. From a long-term perspective, Korea needs to expand its presence in the global market, which takes less risk from economic fluctuations.
In reality, domestic companies are slow to advance in the global procurement market due to complex regulations and systems of each country, conservative purchases, initial excessive costs for becoming registered vendors and limited information gathering capability.
Between 2003 and 2004, Korea had a 1.006 percent and a 5.094 percent contribution stake in the World Bank and the Asian Development Bank, respectively, but the nation's percentage of participating in the procurement stood at a meager 0.2 percent and 2.4 percent.
With KOTRA becoming Korea's PSLO representative, the Korean government plans to actively help Korean companies strengthen their presence in the global procurement.
In a meeting with MOCIE Minister Chung, World Bank President Wolfowitz said Korea needs to increase its roles in the international community, corresponding to Korea's standing as a global, economic powerhouse. The World Bank president said he will provide support for Korean companies'participation in support programs for developing countries being implemented by the World Bank and Multilateral Development Banks.
Wolfowitz said Korea must expand growth engine capabilities by joining market-opening and competitive trends as globalization of the world economy and FTA agreement as well as strengthening national competitiveness.
In his lecture to an international workshop organized by Korea Development Institute on the same day, Wolfowitz called on Korea to expand support to Africa by capitalizing on economic strides the nation has achieved during a short period. He asked for Korea not only to share experiences on economic development with African nations, but also provide technology and capital, saying that Korea is a good model for the development in the poor countries in Africa.
During its 2005 annual meeting, the World Bank launched the Africa Action Plan calling for the development of the African region and elimination of poverty. nw

Paul D. Wolfowitz, president of the World Bank, and MOCIE Minister Chung Sye-kyun are at hand during a ceremony held in Seoul on May 5 in which the World Bank signed a deal with KOTRA on appointing the latter of Korea representative of the Private Sector Liaison Officers.