South Korea Expands Economic Cooperation with Five Central Asian Nations

President Lee Jae-myung has expanded economic cooperation in key minerals and energy supply chains, as well as infrastructure projects, through a summit with five Central Asian nations. The government established a foundation for South Korean companies to enter the Central Asian market by signing a total of 74 agreements and memorandums of understanding (MOUs) during the summit.

By promoting tailored bilateral economic cooperation, the summit addressed cross-border challenges such as logistics, transportation networks, supply chains, climate change, and AI and digital initiatives, thereby broadening diplomatic horizons at the regional level.

On September 16, President Lee hosted the first summit with the leaders of five Central Asian countries at a hotel in Seoul, marking the first time these leaders gathered in a multilateral format.

During the summit, President Lee held separate meetings with Tajikistan's President Emomali Rahmon and Kyrgyzstan's President Sadyr Japarov at the Blue House, resulting in the signing of 35 cooperation documents, including 17 with Tajikistan and 18 with Kyrgyzstan.

The relationship with Tajikistan was elevated to a 'comprehensive partnership.' This visit by the Tajik president was the first in 11 years.

President Lee described Tajikistan as a geographical hub connecting Central Asia and South Asia, rich in mineral resources and growth potential. He stated, "South Korea will actively cooperate as a reliable partner for Tajikistan's economic development."

Railway projects are at the center of cooperation between the two countries. A framework for intergovernmental railway cooperation was established, allowing Korea Railroad Corporation and the National Railroad Authority to participate in the construction of the Dushanbe urban railway and the training of specialized personnel.

Cooperation in key minerals, AI and digital initiatives, and smart grid technology will also be pursued in conjunction with railway infrastructure. The plan reflects the belief that South Korean companies can secure resource supply chains and infrastructure contracts by jointly developing the necessary transportation and power infrastructure for mineral resource development.

With Kyrgyzstan, the 'comprehensive partnership' established in 2024 was further specified in urban development and trade and investment sectors. South Korea's urban planning and smart construction experience will be combined to meet Kyrgyzstan's rapid urbanization demands.

The two countries agreed to jointly promote urban master plans, transportation and living infrastructure, and industrial park development, allowing South Korean companies to participate in public-private partnership (PPP) projects. This approach aims to reduce Kyrgyzstan's financial burden while providing domestic companies with opportunities to enter the Central Asian urban and infrastructure market.

The scope of trade and investment cooperation has also expanded to include key minerals, digital transformation, halal certification, and the textile industry. Notably, South Korea's halal certification will be recognized locally, reducing certification costs and time for domestic companies.

A system for sending workers under the employment permit system was also established. This will ensure transparency in the dispatch process and protect the rights of workers by supplying Kyrgyz personnel to South Korean small and medium-sized enterprises through an objective procedure. The relationship, previously focused on development cooperation and personnel exchange, is now seen as expanding into investment, trade, and industrial cooperation.

On September 15, the focus was on energy and resource diplomacy with Kazakhstan and Turkmenistan.

With Kazakhstan, Central Asia's largest economy and a major oil and uranium producer, the relationship was elevated to a 'future-oriented comprehensive strategic partnership' for the first time in 17 years. In the event of global supply disruptions, Kazakhstan will increase oil supply, and both countries will collaborate on oil and gas field development and petrochemical research.

Joint research and development on nuclear power and small modular reactors (SMRs), as well as nuclear safety and specialized personnel training, will also be pursued. By connecting Kazakhstan's oil and uranium resources with South Korea's nuclear and advanced industry technologies, the relationship has evolved from simple resource importation to long-term economic security cooperation.

With Turkmenistan, the focus is on linking its abundant natural gas resources to the chemical industry and plant projects. After 16 years of negotiations, the two countries finalized an investment protection agreement. This agreement aims to reduce investment risks for South Korean companies in large-scale, long-term plant and infrastructure projects, which require significant funding. Based on this, new projects in the chemical and plant sectors, railways, shipbuilding, and smart water management will be explored.

On the first day of summit diplomacy, September 14, the focus was on addressing Uzbekistan's demand for transportation and industrial advancement, given it has the largest population in Central Asia. Feasibility studies were initiated for the introduction of eight high-speed trains and the establishment of a national genome and biobank, while cooperation was expanded into AI transformation in manufacturing and the defense sector.

Cooperation with Uzbekistan is centered on market and manufacturing growth potential rather than just resources. The plan aims to combine South Korean technology and finance in high-speed rail, biotechnology, and manufacturing AI to capture the largest consumer market in Central Asia.

Seong Gi-hong, senior presidential secretary for public relations and communication, stated, "We hope this new journey that began in Seoul will enrich the lives of people in both regions and serve as a solid foundation for mutual prosperity between South Korea and Central Asia. This will be a turning point in expanding our diplomatic horizons into Eurasia and transforming our long-standing relationship with Central Asia into a future-oriented partnership for mutual growth."