Last November, the leaders of Central Asia’s five 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 meeting in 2015 was elevated to a leaders’ summit within 10 years, signaling the start of supply-chain and trade shifts in a region long dominated by Russian and Chinese influence.
The United States is not alone. China and Japan are also strengthening C5+1 (Central Asia 5+1) cooperation with the five countries. The United States, in particular, is using the B5+1 (Business 5+1) forum to explore cooperation in agriculture, banking and finance, critical minerals, e-commerce and IT, telecommunications and logistics, and tourism.
For South Korea, which is seeking both supply-chain stability and export diversification, the trend carries clear implications. Central Asia has historically served as a conduit for technology and culture among major powers such as China, Russia, Britain and Turkey. With about 130 ethnic groups maintaining distinct identities, the region also shows diverse consumer demand.
Exports to Central Asia rose about 42% last year, far outpacing South Korea’s overall export growth rate of 3.8% and exceeding gains seen in many other Global South markets, including Southeast Asia, the Middle East and Latin America. While competition is intensifying in those markets, Central Asia is seeing new supply chains form due to the Russia-Ukraine situation. The region also has strong awareness of Korean consumer goods, steady economic growth and a high average birthrate close to three children, factors that point to significant growth potential.
Central Asia should be viewed not as a stopgap market but as a strategic buffer as Korean companies adapt to a changing trade order. The more dependence rises on any single market, the more vulnerable firms become to external shocks. Building an early foothold in emerging markets where competition is less overheated can help spread medium- and long-term trade risks. That requires a shift in mindset from seeking a short-term export outlet to making a proactive investment in resilience.
Three keywords can serve as a practical map for using Central Asia as a strategic market for export diversification: Market Test, Area Expansion and Pilot Sandbox.
First, Market Test: Central Asia can be used to test export suitability across a range of products. As supply chains are reshaped, companies should use access to major local distribution channels while accounting for clearly segmented demand by income level in industries such as autos, cosmetics, food, and medical and biotech products. In Uzbekistan, the IT Park has set up overseas offices in South Korea, the United States and China to expand startup cooperation and is pursuing projects such as building green data centers.
Second, Area Expansion: The region 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 bloc, and BBQ Chicken is expected to enter soon. Companies should use a start in Central Asia as a bridge to Russia, where language and business conditions are similar and many Western firms have withdrawn. Kaspi, Central Asia’s largest e-commerce company, is expanding into Azerbaijan and Ukraine. Freedom Holding, a U.S.-based fintech company, is also expanding beyond Kazakhstan into Uzbekistan and Kyrgyzstan.
Third, Pilot Sandbox: Central Asia has strong interest in advanced-industry cooperation, offering Korean companies opportunities to 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 has also moved to improve the business environment by deciding to pilot stablecoin payments.
In a fast-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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