The Ministry of Trade, Industry and Energy announced that Yeo Han-goo, the head of the Trade Negotiation Bureau, met with Mongolia's Minister of Economic Development, Zandanshatar Enkhbayar, on June 17 in Mongolia. The meeting aimed to expand economic cooperation between the two countries and advance the Korea-Mongolia CEPA negotiations.
The government is working to enhance cooperation with resource-rich countries to stabilize supply chains. This effort comes as China tightens its export controls on rare earth elements, prompting major nations to diversify their critical mineral sources. The CEPA with Mongolia is part of this broader strategy to expand supply chains.
Mongolia ranks seventh in the world for copper reserves and ninth for molybdenum production, holding 16% of the global rare earth mineral deposits. This makes Mongolia a significant emerging trade partner for South Korea, which is pursuing a strategy to stabilize its critical mineral supply chains. However, there is currently no separate trade agreement to support the expansion of trade and investment between the two nations.
In response, the South Korean government has been pushing for the Korea-Mongolia CEPA since November 2023. During the recent meeting, Yeo emphasized the importance of reaching an early agreement on the CEPA to accelerate economic cooperation and enhance supply chain connectivity. He also coordinated detailed positions to prepare a mutually beneficial negotiation outcome in the key areas of goods and origin under the CEPA discussions.
Prior to the meeting, Yeo held a session with South Korean companies operating in Mongolia to gather feedback on specific challenges they face, such as delays in customs procedures and strict CEPA origin certification requirements. He urged the Mongolian government to actively address these concerns during the trade ministerial discussions.
This is particularly relevant as Mongolia is not only developing its mineral resources but also pursuing policies for new city construction, infrastructure modernization, and digital transformation. This indicates potential opportunities for South Korean companies in sectors such as plants, construction, and ICT.
Yeo Han-goo stated, "The Korea-Mongolia CEPA will serve as a key institutional foundation for expanding trade and investment between the two countries, as well as for building a stable supply chain alliance. We will accelerate negotiations to achieve mutually beneficial outcomes in the future."
* This article has been translated by AI.
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