South Korea is going all-in on developing trade ties with Central Asian states, joining the scramble for regional market share in key emerging sectors, including mining, transport and AI/IT.
The East Asian country became the sixth state in the past 18 months, joining the United States, China, Russia, the European Union, and Japan, to convene a summit involving leaders of all five Central Asian nations within a format known as C5+1.
The September 16 meeting in Seoul produced a cooperation framework for the coming decades.It also yielded a plethora of bilateral deals worth billions.A declaration adopted at the conclusion of the Seoul summit announced the establishment of mechanisms to guide the further development of relations, including a biennial summit of heads of state and the establishment of ministerial-level consultative bodies to foster the growth and efficiency of supply chains, as well as industrial and technological cooperation.
Kazakhstan is scheduled to host the next South Korean-Central Asian summit in two years.The document also commits South Korea to helping Central Asian states develop “joint value-added production chains” in the mining and critical minerals sector.
Seoul additionally will provide technology and expertise to regional states to refurbish energy-sector infrastructure, build out AI/IT capabilities and improve responses to climate change-related developmental challenges, such as improving management of dwindling water resources.
In his summit address, South Korean President Lee Jae Myung outlined a near-term goal of significantly expanding trade, beyond the existing pattern of Korean-made autos and parts heading to Central Asia, and oil, natural gas and raw materials coming back in return. “We now need to move beyond these items and expand the scope of trade into new industries, including consumer goods, biotechnology and digital sectors,” he said.
Immediate priorities for South Korea are the digitization of customs procedures and the opening of representative offices in each Central Asian capital, tasked with speeding the trade flow.On the bilateral level, Kazakhstan announced deals worth $19 billion. “There are promising plans for the construction of hotels, an oil refinery, and urban development,” Kazakh President Kassym-Jomart Tokayev said in a statement. “Particular attention is being paid to strengthening cultural and humanitarian ties." Meanwhile, Uzbek President Shavkat Mirziyoyev explored deals worth potentially $12 billion, but the actual value of signed agreements appeared to be far lower.
A statement released by Mirziyoyev’s office announced agreements covering such spheres as transport, agriculture, tourism and artificial intelligence without specifying a dollar figure.The Uzbek leader additionally expressed interest in establishing an $8 billion financing mechanism with South Korea’s Ex-Im Bank.
Turkmenistan agreed to establish a first-of-its-kind joint venture with a South Korean firm to manufacture IT equipment, including servers, data storage systems and other components, aimed at the Turkmen domestic market, the Ashgabat-based news outlet Arzuw News reported.
The agreement appears designed to help Turkmen officials maintain strict oversight over the domestic flow of information. “The Korean partners will transfer advanced technologies, technical solutions and expert support,” the report states. “The Turkmen side will adapt products to local standards, create infrastructure and the implement solutions for the local market.” Turkmen officials also signed a bevy of memoranda of understanding covering a wide range of topics, including customs, media, combating transnational crime, intellectual property rights, and water resource management.
The official Turkmen news agency TDH described Turkmen-South Korean relations as having “gained new momentum and developing along the principles of a strategic partnership.” The Tajik presidential press service reported signing 15 documents, predominantly non-binding MoUs.
Kyrgyzstan, meanwhile, signed 18 agreements, according to KBS World Radio, South Korea's international broadcaster.Some are symbolic in nature, such as an MoU establishing Bishkek and Seoul as sister cities.