South Korea - The Times Of Central Asia

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Central Asia and South Korea Seek to Expand Cooperation

The 17th Central Asia–Republic of Korea Cooperation Forum, which took place in Seoul on November 4, addressed key areas of partnership between Central Asian countries and South Korea in sectors such as transport and logistics, energy, critical minerals, digital transformation, environmental issues, and tourism. Speaking at the forum, Kazakhstan’s Minister of Foreign Affairs, Murat Nurtleu, emphasized the importance of transport connectivity for the region’s sustainable economic growth. Kazakhstan is developing the Trans-Caspian International Transport Route to ensure safe and efficient cargo transportation from Asia to Europe. The Kazakh minister invited Korean companies to participate in major projects to expand the route’s capacity to 10 million tons of cargo annually. Addressing energy cooperation, Nurtleu highlighted Kazakhstan’s abundant natural resources, including rare earth metals and uranium. The Kazakh Foreign Minister expressed hope that Korean companies would join projects for resource extraction and processing and participate in a consortium to construct a nuclear power plant in Kazakhstan. Nurtleu stated, "Central Asian countries and the Republic of Korea are natural partners connected by a shared history, Altai heritage, and traditional trade relations dating back to the Silk Road era. The Republic of Korea is increasingly vital in the economic and technological development of the entire Central Asian region.” At the forum, Kyrgyzstan’s First Deputy Minister of Foreign Affairs, Asein Isaev, highlighted the growing role of South Korea as a high-tech nation interested in strengthening supply chains for energy resources and rare earth metals and developing transport and logistics routes with Kyrgyzstan and other Central Asian countries. As part of the forum, South Korea's President Yoon Suk Yeol met with the heads of Central Asian delegations and pointed out Korea’s interest in strengthening relations with Central Asian countries through the K-Silk Road initiative. This strategic program supports Korean infrastructure development in Central Asia in exchange for improved access to the region’s raw materials and critical minerals. During his visit to Kazakhstan in June, Yoon Suk Yeol emphasized the importance of strengthening the strategic partnership between Kazakhstan and South Korea to supply critical minerals.

Automobile Industry South Korea Economic Growth Automotive Industry Economic Cooperation

Car Multimedia System Plant Launched in Almaty

The opening ceremony of the Kazakhstan Mobility Engineering Plant took place on October 30 in Almaty, Kazakhstan’s largest city. The new production facility is part of Astana Motors, Kazakhstan’s major automobile distribution and manufacturing company. In April last year, Astana Motors signed a memorandum of cooperation with South Korea’s Motrex Co Ltd., receiving the right to produce multimedia devices in Kazakhstan using the Korean partner's technology. The plant was launched in September 2024, and the first batch of its audio and video multimedia systems has already been delivered to the Hyundai Trans Kazakhstan plant for installation on Tucson and Elantra cars. Speaking at the opening ceremony, Minister of Industry and Construction of Kazakhstan, Kanat Sharlapayev, emphasized that multimedia systems are high-precision production requiring first-class specialists' competencies in digital technologies. “Our key goal is to create a production cycle with a high share of [production] localization [inside Kazakhstan]. And we will make maximum use of domestic raw materials and components. That is why Kazakhstan Mobility Engineering is important for the country.” Motrex CEO Junseon Kim also stressed the importance of local production: "Our goal is to closely cooperate with our partners to increase local production of components and leadership in the assembly of multimedia devices. The partnership will allow us to respond quickly to local needs, create jobs, and support Kazakhstan's economic growth." The Kazakhstan Mobility Engineering plant is part of the Astana Motors Engineering Technopark, constructed in the Industrial Zone of Almaty to produce automobile components. The technopark will also open a car seat manufacturing plant, a rubber and plastic products manufacturing plant, and a logistics hub. Its products will be supplied to the Hyundai Trans Kazakhstan plant and other automobile plants in Kazakhstan. Astana Motors has also signed a memorandum with Sanico Electronics, a South Korean manufacturer, to obtain the right to produce motherboards and cases for multimedia systems. In other news, Kazakhstan’s national company, Kazakh Invest, and KIA Qazaqstan discussed projects to produce original South Korean auto components for KIA cars in Kazakhstan. The parties considered cooperating with South Korean companies SJG Sejong and Seoyon E-Hwa, the original manufacturers of seats, bumpers, mufflers, and other components for KIA cars. Representatives of the companies expressed interest in implementing investment projects in Kazakhstan, emphasizing the strategic importance of localizing the production of automotive components in the country. A full-cycle plant to produce KIA cars is currently under construction in Kazakhstan’s Kostanay. The new plant will cost about $200 million and have a production capacity of 70,000 vehicles annually. This project is KIA's first direct investment in a joint venture to construct a plant outside Korea. At a government meeting on October 29, Minister of Industry and Construction Sharlapayev said that from January to September 2024, Kazakhstan produced more than 82,000 cars.

Kazakhstan’s Energy Ministry Discusses Nuclear Plant Construction With South Korea

From October 22 to 25, a delegation from Kazakhstan led by Energy Minister Almasadam Satkaliev visited South Korea. As part of the visit, meetings were held with representatives of leading Korean energy companies and government agencies. The key topics of the talks were cooperation issues in the nuclear power industry. In addition, at the meeting with the South Korean Minister of Trade, Industry, and Energy, they discussed opportunities to expand cooperation in the oil and gas sector and renewable energy. Satkaliev also met with the management of major Korean companies, including Doosan Enerbility, Korea Hydro & Nuclear Power (KHNP), Korea Electric Power Corporation (KEPCO), Korea National Oil Corporation (KNOC), and Samsung C&T. During the talks, the parties considered the prospects of Korean companies participating in an international consortium, which Kazakhstan is studying as a model for implementing the project to build a nuclear power plant. As the minister specified, the final decision on this issue is expected in 2025. Negotiations with Doosan Enerbility concluded with the signing of a memorandum of understanding. This document provides for studying opportunities to localize the Korean company's operation in Kazakhstan and establish a representative office of the plant in Astana. Now, Doosan Enerbility cooperates with Kazakhstan to construct a gas turbine power plant with a capacity of 1000 MW in the Turkestan region. In addition, the company, together with KEPCO KPS, is conducting a technical audit of Kazakhstan's energy infrastructure to reduce emissions and extend the life of the equipment. After the October 6 referendum, in which Kazakhstanis supported the construction of the first nuclear power plant, President Kasym-Jomart Tokayev proposed the creation of an international consortium to implement the project. He emphasized that this project requires the participation of the world's leading companies with modern technology and experience to ensure the safety and efficiency of construction. Russia's Rosatom, South Korea's KHNP, France's EDF, and China's CNNC are considered potential participants. These companies are expected to work together to transfer technology and attract investment, which is particularly important for Kazakhstan as it seeks to reduce energy dependence and strengthen the country's energy security. Construction of the plant is planned to begin on the shores of Lake Balkhash and be completed by 2035. A final decision on the structure of the consortium is expected by 2025.

Industry Automobile Industry South Korea International Cooperation Economic Cooperation Natural gas

Daewoo To Invest $730 Million in Turkmenistan

South Korean company Daewoo Engineering & Construction has won a tender to build a fertilizer plant in Turkmenistan. The project is estimated to cost a trillion won (about $730 million). According to the company, the new plant will be located in Turkmenabat, 450 km east of Ashgabat. It will have an annual capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, and will include additional auxiliary facilities. After the completion of the main contract, final data on the contract's value and implementation terms will be published. The company has stated that implementing the project will allow Daewoo E&C to strengthen its presence in Central Asia and expand its activities in the petrochemical and agricultural sectors, infrastructure, and urban projects. In the future, the company intends to offer environmentally friendly technological solutions to further cooperate with Turkmenistan. Daewoo E&C noted that winning the tender was possible thanks to the support of the South Korean government, including during the official visit of President Yun Seok Yeol to Turkmenistan in June. The company's Chairman, Jeong Won-ju, also met with the Chairman of the People's Council of Turkmenistan, Gurbanguly Berdimuhamedov, in November 2022 during his visit to South Korea. The two sides signed a memorandum of understanding, cementing an agreement on close cooperation. Jeong Won-ju has visited Turkmenistan three times since then, which helped strengthen ties and successfully conclude negotiations. Daewoo E&C is aiming to become a leader in the global EPC (engineering, procurement, and construction) market. “We strive to participate in projects that contribute to a sustainable future,” a company representative stated. Turkmenistan is implementing several major projects with the participation of South Korean companies. Hyundai Engineering has agreed with state-owned Turkmengas to expand the Galkynysh gas field. This project includes the construction of a fourth gas desulfurization facility, making it the largest in the country's history. Korean companies have also been actively constructing and developing an oil refinery in Kiyanly. Projects to create “smart cities” are also being discussed.

Dry Port Strategy South Korea Transport and Logistics Transport cooperation Trade and Logistics Transport

South Korea to Help Build Dry Ports in Uzbekistan’s Syrdarya and Jizzakh Regions

The Ministry of Transport of Uzbekistan announced on October 2 that it had signed a Framework Agreement with the Port Investment Department of the Ministry of Oceans and Fisheries of South Korea to jointly develop a feasibility study for the construction of dry ports and terminals in Uzbekistan’s Syrdarya and Jizzakh regions. According to the Uzbek ministry, the project will help improve the country's transport and logistics infrastructure. Creating inland terminals will be an important step towards increasing Uzbekistan's logistics independence and strengthening its role as the main logistics hub in Central Asia. The project is expected to significantly improve the country’s transport infrastructure and attract new investments to the Syrdarya and Jizzakh regions, supporting the goals of the "Development Strategy of New Uzbekistan for 2022-2026." The project is scheduled for completion in September 2025. As one of only two double-landlocked countries in the world (the other being Liechtenstein), Uzbekistan has to ship its exports over long distances through other landlocked countries — Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Afghanistan. In recent years, the government of Uzbekistan has made substantial progress in improving existing international transport corridors running through the country and in developing new corridors that will allow Uzbekistan to access the markets of the Eurasian Economic Union and European countries, Iran, Turkey, Afghanistan, Pakistan, India, and China.

Uzbekistan and South Korea Increase Flights Between Countries

During talks in Seoul this week, Uzbekistan’s Ministry of Transport and South Korea’s civil aviation authority reached agreements to increase the number of regular flights between Uzbekistan and South Korea from the current 10 to 24 per week for airlines of each country, raising the total weekly number of flights to 48. According to the Uzbek ministry, airlines of both countries will operate up to 12 weekly flights between Tashkent and Seoul and up to four flights from South Korea’s regions to Tashkent. Up to four flights per week will be performed from Uzbekistan’s regions to Seoul, and there will be up to four weekly flights between Uzbekistan's regions and other South Korean cities. An agreement was also reached on the bilateral use of the Open Skies regime at the international airport of Jeju, the second-largest airport in South Korea, and Uzbekistan’s Samarkand airport for airlines of both countries. From the Uzbek side, flights between the two countries will be operated by the national air carrier, Uzbekistan Airways, and new airlines created by Uzbekistan — Qanot Sharq, My Freighter, and Air Samarkand. According to the Uzbek ministry, these agreements will help develop trade and economic relations between the two countries, increase bilateral passenger and cargo turnover, and attract Korean tourists to the historical cities of Uzbekistan. The Times of Central Asia earlier reported that South Korea is one of the most popular destinations for Uzbeks, both for work and studies. The Uzbeks occupy fifth place by size of the foreign diaspora in the country and number more than 69,000. In recent years, the government of Uzbekistan has established regulations for legal and safe labor migration to South Korea. At the start of 2024, the government announced its intention to attract 100,000 Uzbeks to work in South Korea.