Last November, the leaders of five Central Asian countries met with President Donald Trump in Washington to discuss securing critical minerals, the Trump Peace Route (TRIPP) and cooperation on artificial intelligence. A platform that began as a ministerial-level meeting in 2015 was elevated to a leaders’ summit within 10 years, signaling the start of shifts in supply chains and trade rules in a region long dominated by Russian and Chinese influence.
The United States is not alone. China and Japan are also strengthening C5+1 cooperation with the five Central Asian countries. The United States, in particular, is using the B5+1 (Business 5+1) forum to explore business-to-business cooperation in agriculture, banking and finance, critical minerals, e-commerce and IT, telecommunications and logistics, and tourism.
For South Korea, which must secure supply-chain stability while diversifying exports, the trend carries clear implications. Central Asia has historically served as a conduit for technology and culture among major powers including China, Russia, Britain and Turkey. With about 130 ethnic groups maintaining distinct identities, the region also supports diverse consumer demand.
Export momentum underscores the opportunity. While South Korea’s overall export growth rate was 3.8% last year, exports to Central Asia rose by about 42% — more than 10 times higher and well above many other Global South markets in Southeast Asia, the Middle East, and Central and South America. As competition intensifies in those markets, Central Asia merits attention for its emerging supply chains shaped by the Russia-Ukraine war, strong awareness of Korean consumer goods, steady economic growth rates and a high average birthrate close to three children, all pointing to significant growth potential.
Central Asia should be viewed not as a simple substitute market but as a strategic buffer as Korean companies adapt to a new trade environment. The more concentrated exports become in a single market, the more vulnerable they are to external shocks. Building an early foothold in less overheated emerging markets is essential. That requires a shift in thinking: looking to Central Asia is not a short-term search for export outlets, but a preemptive investment to spread medium- and long-term trade risks.
Three keywords can serve as a map for using Central Asia as a strategic market for export diversification: Market Test, Area Expansion and Pilot Sandbox.
First, Market Test: the region allows companies to test export fit across a wide range of products. As supply chains are reshaped, firms should use placement in major local distribution channels while accounting for clearly segmented demand by income level in industries such as autos, cosmetics, food, and medical and biotech. In Uzbekistan, an IT Park has set up overseas offices in South Korea, the United States and China to expand startup cooperation, and is pursuing projects including green data centers.
Second, Area Expansion: Central Asia can be linked to entry into nearby large markets. In Kazakhstan, CU convenience stores and Artbox have entered for the first time in the former Soviet region, and BBQ Chicken is expected to enter soon. Companies should start in neighboring Central Asian countries and use similarities in language and business conditions to build a bridge into Russia, where many Western firms have withdrawn. Kaspi, Central Asia’s largest e-commerce company, is expanding into Azerbaijan and Ukraine. Freedom Holding, a U.S.-headquartered fintech company, is expanding beyond Kazakhstan into Uzbekistan and Kyrgyzstan.
Third, Pilot Sandbox: Central Asia’s strong interest in advanced-industry cooperation can help Korean companies build technical data in areas such as sovereign AI, cryptocurrency, autonomous driving and drones (UAM). Kazakhstan’s Alatau new city, now under construction, is promoting regulatory sandboxes in fields including blockchain, AI and drones to attract foreign companies. Uzbekistan is also moving to improve the business environment by deciding to pilot stablecoin payments.
In a rapidly changing global market, Korean companies should aim to use Central Asia to succeed in diversifying exports.
* This article has been translated by AI.
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