South Korea's Deputy Prime Minister and Minister of Economy and Finance, Ku Yun-cheol, met with senior officials from the Mongolian government during President Lee Jae-myung's state visit to Mongolia to discuss expanding cooperation in critical minerals, artificial intelligence (AI), renewable energy, and healthcare.
On July 9, Ku held discussions with Mongolian Deputy Prime Minister and Minister of Economic Development, Zandanshatar Enkhbayar, and Minister of Finance, Chuluunbat Mendsekh.
The two sides agreed on the need to elevate economic cooperation to usher in a 'golden era' in Korea-Mongolia relations, marking the first state visit in 15 years. They recognized significant potential for collaboration in future-oriented sectors such as AI technology, data center construction, critical mineral supply chains, renewable energy development, and healthcare.
Ku emphasized, "By combining Mongolia's abundant mineral and climate resources with Korea's advanced technology, we can open a new golden era of Korea-Mongolia economic cooperation. Let's pursue mutually beneficial projects in critical mineral supply chains, renewable energy development, and AI collaboration."
Mongolia ranks seventh in the world for copper reserves, ninth for molybdenum production, and second for rare earth element reserves. Its renewable energy potential is estimated at around 2,600 gigawatts.
Enkhbayar referred to South Korea as "an important third neighboring country and partner in economic development," advocating for the strengthening of the strategic partnership between the two nations.
Both sides welcomed the preliminary agreement on a Comprehensive Economic Partnership Agreement (CEPA) during this visit, aiming to expand trade and investment beyond critical mineral development and utilization to strategic areas such as AI and digital infrastructure.
Mendsekh expressed a keen interest in South Korea's economic development experience and technology, hoping for more Korean companies to enter Mongolia, particularly in sectors where both countries can create synergies, such as AI and renewable energy.
As part of this summit, the Ministry of Economy and Finance signed a memorandum of understanding (MOU) with Mongolia's Ministry of Finance for the construction of the second national cancer center. This facility will be a specialized hospital with 400 beds and 95,000 square meters dedicated to cancer prevention, diagnosis, treatment, education, and research. The project is estimated to cost $230 million, funded through the Economic Development Cooperation Fund (EDCF).
The MOU aims to expedite the feasibility study for the second national cancer center, which Mongolia requested EDCF support for, and to strengthen cooperation between the two sides.
Mongolia has one of the highest cancer incidence and mortality rates in the world, with 234 cases and 182 deaths per 100,000 people. Liver and colorectal cancers have the highest rates of both incidence and mortality globally. The existing national cancer center in Mongolia, established in 1961, is reported to be outdated and limited in its capacity due to a shortage of beds.
The two sides plan to specify the introduction of an AI-based next-generation medical system tailored to Mongolia's realities during the feasibility study process. They will also pursue cooperation through other development projects, such as the Knowledge Sharing Program (KSP), to enhance Mongolia's cancer prevention and response capabilities.
This feasibility study marks the first initiative following the Ministry of Economy and Finance's announcement of a new EDCF vision in April. The ministry will detail how to apply Korea's innovative medical technologies, including AI-based diagnostic systems, in Mongolia before seeking approval from the vice minister.
Additionally, the ministry supported the signing of an MOU for a $30 million financing agreement between the Korea Export-Import Bank and the Mongolian Trade and Development Bank. This financing arrangement allows the Export-Import Bank to lend funds to local banks in Mongolia, which in turn provide loans to importers of Korean goods.
The government expects that this agreement will facilitate policy funding for local companies importing Korean products, thereby expanding the export of Korean goods such as food and cosmetics to Mongolia.
* This article has been translated by AI.
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