Dominican Republic learns Korean economic model

Dominican Republic learns Korean economic model



Eddy Martinez, third from left, secretary of state for Dominican Republic listens to Jung Sung-soo, left, senior loan officer of the Export-Import Bank of Korea (Korea Eximbank) during a presentation for government officials and businessmen from his country at the lender?s main office in Yeouido, Seoul, Wednesday. / Courtesy of Korea Eximbank



By Kim Jae-won

The visiting Dominican Republic secretary of state said Wednesday that the Caribbean island state wants to follow the Korean economic model, which helped the nation become one of the world?s strongest information technology powerhouses.

?We are seeking to follow Korea?s example. Dominican Republic has been an agricultural country, but wants to transform to an advanced IT industry-based nation,? said Eddy Martinez, secretary of state of Dominican Republic through an interpreter in an interview with The Korea Times.

Martinez came to Seoul with fellow government officials and businessmen to take part in an education program, invited by the Export-Import Bank of Korea (Korea Eximbank).

Martinez, also in charge of the nation?s export and investment agency, said he hopes a bilateral relationship with Korea will be enforced through his visit.

?We want to be a strategic ally of Korea. We hope to have more important relationships with Korean companies.?

Martinez said that he is especially interested in Korea?s advanced three-dimensional (3D) technology and digital content business. Korea?s LG Electronics and Samsung Electronics are two of the world?s leading companies with high-end 3D technologies.

The secretary of state also said he wants to learn from Korea?s education system, which has produced quality human resources enabling drastic economic development.

Julio Anibal Fernandez Javier, vice finance minster of Dominican Republic, stated his appreciation of Korea Eximbank for providing the Economic Development Cooperation Fund of $23 million to his country, which contributed to its customs agency modernization project.

Javier also hoped for more loans from Korea for its projects for its immigration agency modernization and trade center construction.
Korea Eximbank said that it has already approved an additional loan of $25 million for the immigration improvement, and is in talks with Dominican Republic on the trade center project, valued at $36 million.

The state-run bank introduced the nation?s small- and medium-sized enterprises (SMEs) support program titled ?Korea?s Hidden Champions? to the Dominican Republic people. A hidden champion refers to an SME, which has an internationally competitive market share though its exports are less than $4 billion.

The bank wants to enforce the backbone of the nation?s industry supporting 100 SMEs which have the potential to grow as globally competitive companies.

The 12 Dominican Republic officials and businessmen also visited the main office of Celltrion, a leading biopharmaceutical company based in Incheon, and an example of a Korean hidden champion.

They are scheduled to drop by global Seoul-based companies, such as Samsung Electronics and LG Electronics, to look around plants and industrial infrastructure later in the week.

Korea Eximbank organized this event as part of its ?Knowledge Sharing Program,? which introduces the country?s experience of economic achievement to developing nations.

Korea has drawn attention from the world for its rapid economic success from poverty and the ruins of the Korean War.



Dominican Republic learns Korean economic model

This goes baaaack!


It goes back to a July 2006 visit to the Korea Development Institute (KDI) by President Leonel Fernandez Reyna of the Dominican Republic. Already familiar with Korea’s development experience, President Fernandez participated in a special seminar on knowledge economy and engaged in a lively discussion with KDI scholars. He subsequently instructed Minister Eddy Martinez Manzueta of the Export and Investment Center of the Dominican Republic (Centro de Exportacion e Inversion de la Republica Dominicana, or CEI-RD) to seek cooperation with the KDI.



On a visit to the Republic of Korea in August 2007, Minister Martinez met Dr. Kwang-Eon Sul, Vice President of the KDI, and requested a policy consultation for the Dominican Republic through Korea’s Knowledge Sharing Program (KSP). Launched in 2004, the KSP aims to contribute to the socioeconomic development of partner countries by sharing Korea’s development
experience and tailoring policy advice to the needs of these countries.

In March 2008, the CEI-RD officially proposed a KSP project on the topic, “Models/Strategies for Export and Investment Promotion and Human Resource Development.” After reviewing this proposal, the Ministry of Strategy and Finance (MOSF), the supervisory ministry for the KSP, selected the Dominican Republic as a partner country for 2008-09.

In April 2008, Dr. Wonhyuk Lim, Director of the Office for Development Cooperation at the KDI, visited the Dominican Republic and met with Minister Martinez to discuss research priorities for the project. They quickly saw eye-toeye on the need to take an integrated approach to the export development of the Dominican Republic. Changes in trade policy alone would not be enough.
Export development would also require industrial upgrading, human resource development, and improved credit and insurance services. With this in mind, Dr. Lim organized the Korean expert group for the project.

Prof. Jongil Kim of Dongguk University, Prof. Byoung-Hoon Lee of Chung-Ang University, and Mr. Sung-Kyu Choi of the Korea Eximbank all agreed to participate, adding their strong reputations to the project. Minister Martinez, for his part, shared his
ideas for his country’s export development through lengthy discussions with the Korean expert group. He also recommended Dominican government officials and business leaders who would participate in the KSP project.


In June and August 2008, the Korean expert group, led by Dr. Lim, visited the Dominican Republic and conducted an in-depth survey in cooperation with the CEI-RD to identify national priorities for export development. They held meetings with government officials and experts from the Ministries of Economy, Planning and Development (SEEPyD), Finance (SEH), Industry and Commerce (SEIC), Agriculture (SEA), Higher Education, Science and Technology (SEESCyT), Education (SEE), and Labor (SET), as well as the Central Bank of the Dominican Republic (BCRD), National Competitiveness Council (CNC), National Council of Free Trade Zones (CNZFE), National Customs Agency (DGA), and National Institute of Technical-Vocational Training (INFOTEP).

The Korean expert group also met with representatives from business associations such as the Dominican Exporters Association (ADOEXPO), Dominican Agro-Business Association (JAD), Dominican Association of Free Trade Zones (ADOZONA), and Dominican Association of Foreign-Investment Companies (ASIEX). In addition, they conducted interviews with exporters such as Microtek Dominicana, Power One, Grupo M, and La Nacional as well as major banks such as the Reserves Bank of the Dominican Republic (BRRD) and National Bank of Housing and Production (BNVP).

The Korean expert group developed a better understanding of the Dominican situation from field visits to these companies and the Cyber Park in Santo Domingo (PCSD) and Las Americas Institute of Technology (ITLA). They also benefited from discussions with experts at the Global Foundation for Democracy and Development (FUNGLODE) and Dominican universities.


Profs. Rolando Guzman and Elida Jimenez subsequently contributed consultant papers on the Dominican Republic’s human resource development. Between these meetings and interviews, the Korean expert group made presentations at the CEI-RD on Korean experiences with export development and analyzed the Dominican conditions to draw preliminary policy recommendations. The Dominican government officials and business leaders attending the seminars made their own presentations to the Korean expert group and later provided helpful comments on these preliminary recommendations.


For the Korean expert group, the highlight of their visits was a meeting with President Fernandez at the National Palace in June 2008. For Korea, export development for which the nation has continuously had to measure itself against global benchmarks has been the engine of growth and the organizing principle under which industrial upgrading, infrastructure development, and
human resource development could be pursued.

To President Fernandez, the Korean expert group suggested that the Dominican Republic similarly use exports to change the Dominican people’s mind-set and overcome the limits of its small domestic market. They emphasized that the government could play a significant role by working with the private sector on a regular basis to devise solutions to emerging problems. Near the end of September 2008, a Dominican delegation headed by Mr. Juan Temistocles Montas, Minister of Economy, Planning and Development, visited Korea to participate in the next phase of the KSP project, Practitioner Workshop and Senior Policy Dialogue.

The fifteen-member delegation included not only government officials such as Ministers Montas, Martinez, and Andres Van der Horst of the National Competitiveness Council, but also representatives from business associations and financial institutions involved in exports. The Dominican delegation participated in the Korean expert group’s seminar and
met with high-ranking officials at the Blue House and Ministry of Strategy and Finance. They also visited the Dongdaemun Fashion Center, Korea Electric Power Corporation (KEPCO), Samsung Electronics, Hanyang University Ansan Campus, SK Group Headquarters, and Korea Eximbank to witness first-hand how Korea had developed its industry, infrastructure, and human resources to promote exports.

In February 2009, the Korean expert group visited the Dominican Republic to present their KSP report through dissemination seminars at the National Palace and CEI-RD. They learned that two of their earlier recommendations had been adopted through presidential decrees namely, the recommendations that the Dominican Republic hold export promotion meetings presided by the
President on a regular basis and strengthen overseas marketing and information collection efforts.

Chip said:

The DR will never advance as long as politicians make as much money as they do or have so many staff and lavish expense accounts and Aduanas robs a good portion of the fees due to the people.

As long as the current thievery model is used here it won't matter if the GDP increases 50 or 100% because the hell-bound politicians will find away to take most of it.

At the very least they should stop claiming they are Christian and/or Catholic so as to not anger God any more than He already is with them.

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They have a way to stop it in all Democratic countries... It's called Communism...

In the DR they rob in the open, in the US and all other developed nations they use the stock markets...

At least we see and know who they are, in those others the big fish never shows the face behind the dealings...

For there to be rich they must exist the poor, for a democracy to work, many low income/working class people must support the tiny rich groups.

Let them borrow and then steal it to their hearts content, as for the debt, a day will come that the country must pay the Pied Piper and let it lead the orchestra. At least with the piper in charge we'll all dance to a single tune of thievery...















By then global biz would have full control over individuals and a country's border will meant scant to those pipers...

Votes mean nothing in a two party system...

It's bad or worst choices only...

Democracy is dead as we know it from history, it was a good alternative to what was there before it came about. Today democracy is but a word used to mask totalitarianism and nothing much else.

It's advancing quite well, why thank you!

Robert said:

PICHARDO, I suggest you spend a few days at CEI-RD, talking to people, something I did just under a year ago.

I think Eddy does a good job of promoting the DR, the problem is, investors still have to deal with the BS beyond the sales pitch, glossy Fortune magazine advertorials and the the walls of CEI-RD.

Maybe you can post a list of all the Korean companies that have a presence in the DR, manufacturing, servicing clients etc?

This is about Korea loaning money, not about the DR learning anything.
Why Korea is throwing the dog bones, it has no problem sitting up and begging.

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Not really loaning, they have been donating more than not...

The wall is corruption that's ingrained in the political/government system as we inherited it from our big brother. There was never a real attempt at making it work freely based on the people's interest but that of what America needs were at the time.

The reason there's a bit more order and less hands to pay up in customs, has to do with the way several actions were undertaken from the Korean group advice in the country (they're still working here too).

We don't have a government, what we have is a corruption entity that acts like one in some instances it needs to.

The "bone" is that Samsung is being actively courted to open up shop here by the gov and it's working on adopting the rules of play Korean biz want to see before such thing takes place.

There will be some surprises later on the year 2012 to that end, here in the DR!

"In February 2009, the Korean expert group visited the Dominican Republic to present their KSP report through dissemination seminars at the National Palace and CEI-RD. They learned that two of their earlier recommendations had been adopted through presidential decrees namely"

Supporting any existent political party for elections in the DR is just supporting the continuance of the corrupted system called government here. That much I'm 100% sure about...

You need a social revolution that shakes the very foundation of that system and disrupts its lifeline for good. Until them I support the lesser evil for my country, which is NOT the PRD...

All others are equally corrupted as they're start-ups from the same three players that got booted or were ignored during the "reparticion"...

Until then... One must be careful whom to back up, to still have something that resembles a country to reform.

I won't vote for Hipo (God save us from that disaster) but can't hold my vote mute as it would also benefit him again. Danilo is just like Obama: The great promiser that will never deliver even if he's delivered himself to the chair in the first place...

A vote for anyone else than the PLD is just a vote for the PRD... That's what I meant by "bad or worst"...

Fernandez was the man that could have done a lot of great good but did only the little things... Is there anything that shows Danilo would be any different? Hipo? God save us!

Chip said:

Well Pichardo I'm impressed. Keep the English simple and leave out the BS and you'll have a lot more people paying attention too you.

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Just because you don't like it or agree with it doesn't make any of it B.S. Chip!

Don't need attention, nor do I need people to acknowledge anything of what I say to make it stand for their worth. Only fools need an audience to clap at their every "charlataneria"...

BTW, this country will get better if we teach our Dominican children that they must expect change and to not criticize an honest man in politics nor business.

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I could say the same thing about 100% of all the nations on the face of this Earth Chip, on that same line...

The key is not teaching them to expect change or not to criticize about, but to speak up, demand change and criticize constructively...

Chip said:

So you would have me believe that we will have soon have exclusively electronic money, the metro is making money and the average Dominican household makes RD70k a month. I'd rather vote for Obama!

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But we're moving into E-currency in the DR! That's for sure and you'll see it and live it!

The Metro is producing over USD$30 million from fares on the Line 1 alone, the operational budget is less than USD$25 million of the same line.... That's a year...

The average HHI for the Dominican households is what it is Chip, like it or not!



Upper Middle Class 13%, Upper class 5%, Rich 2% = 20%

Middle 26%, Lower Middle 13%, Low Income 30.6%, Poor 10.4% = 80%

0. Poverty: USD$316 or less to live like 10.4% of these households
1. Low income: USD$527 to 922 to live like 30.6% of these households
2. Low middle class: USD$922 to 1,186 to live like 13% of these households
3. Middle class: USD$1,186 to 4,216 to live like 26% of these households
4. Upper middle class: USD$ 4,216 to 6,588 to live like 13% of these households
5. Upper class: USD$6,588 to 26,351 to live like 5% of these households
6. Rich/wealthy: USD$26,351 + to live like 2% of these households