Sung Yun-mo, Minister of Industry, Reopens Economic Cooperation Channel with Uzbek Deputy Prime Minister
First Ministerial Face-to-Face Meeting in Seoul Since COVID-19
SK Construction Signs Basic Design Contract for Bukhara Refinery Modernization
Discussion Begins on 'New FTA Model of Solidarity and Cooperation' Between the Two Countries
[Asia Economy Reporter Moon Chaeseok] South Korea and Uzbekistan are shaking off the novel coronavirus disease (COVID-19) and resuming economic cooperation. Accelerated efforts are underway to modernize the Bukhara Refinery, in which SK Engineering & Construction (SK E&C) is participating.
On the 6th at 5:30 p.m., Sung Yun-mo, Minister of Trade, Industry and Energy, held a bilateral meeting in Seoul with Sardor Umurzakov, Deputy Prime Minister for Investment and Foreign Cooperation of Uzbekistan.
On the Korean side, five officials including Minister Sung, Park Ki-young, Deputy Minister for Trade of the Ministry of Trade, Industry and Energy, and Yeo Han-gu, Director-General for Trade Negotiations, attended. On the Uzbek side, five officials including Deputy Prime Minister Umurzakov, Deputy Minister Kudratov of the Ministry of Investment and Foreign Trade, and a Deputy Minister of Foreign Affairs participated.
This visit by Deputy Prime Minister Umurzakov is the first visit to South Korea by a foreign government minister-level official since COVID-19.
South Korea provided proactive cooperation to Uzbekistan, including dispatching medical experts and supporting diagnostic kits. Uzbekistan responded by allowing exceptional entry for businesspeople and exempting quarantine. Both sides evaluated that the trust and cooperative relationship developed during the COVID-19 overcoming process.
They reviewed the progress of 39 projects agreed upon during last year’s summit and 57 projects proposed by Uzbekistan during the presidential phone call in April.
They will expand traditional industrial cooperation between the two countries in automobiles, textiles, and agricultural machinery. They will actively explore pilot cooperation projects suitable for the post-COVID environment, such as joint production of protective suits and masks, digital health, and data platforms.
During the meeting, both sides signed a basic engineering design (FEED) contract for the "Bukhara Refinery Eco-friendly Modernization Project" in Uzbekistan. The contract was signed remotely between SK E&C and the Uzbek state-owned oil and gas company.
The project involves modernizing the Bukhara Refinery, located 437 km southwest of Tashkent, the capital of Uzbekistan, with a daily production capacity of 50,000 barrels.
SK E&C plans to improve the refinery facilities to convert heavy oil into higher value-added light petroleum products.
This project is the first contract signed among the 39 projects discussed at last April’s summit and symbolizes the achievements of bilateral summit diplomacy.
Minister Sung expressed gratitude to the Uzbek government for its efforts in resolving difficulties faced by Korean companies, including the FEED contract signing for the Bukhara refinery modernization and repayment of arrears by the Uzbek state-owned company Auto-UZ.
He also explained pending issues such as arrears for Surgil gas payments and the imposition of value-added tax on the joint venture for Navoi compressed natural gas (CNG) cylinders, requesting continued attention and additional support from the Uzbek government.
Both sides confirmed the completion of a joint study on a Free Trade Agreement (FTA). They agreed to proceed with follow-up work aiming to start negotiations on a trade agreement between the two countries.
Minister Sung stated, "In line with our changed trade status, we are preparing a 'Korean-style new FTA model of solidarity and cooperation' aimed at establishing a sustainable trade and investment cooperation model. We plan to pilot this model in the trade agreement with Uzbekistan."
The Ministry of Trade, Industry and Energy expects this to create a virtuous cycle of mutually beneficial cooperation by expanding trade and investment between the two countries and increasing the entry of Korean companies.
Meanwhile, to ensure the successful holding of the meeting between Minister Sung and Deputy Prime Minister Umurzakov, a preparatory vice minister-level working meeting was held in Seoul that morning.
Deputy Minister Park and Deputy Minister Kudratov held the 4th "Korea-Uzbekistan Trade and Economic Joint Committee Working Group Meeting" to discuss ways to promote trade and investment between the two countries and carefully review investment projects.
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