Yoon's State Visit to Turk Marks... $6 Billion Jackpot for Korean Companies

Hyundai Engineering and Daewoo Construction Receive Positive Signals for Orders
Trade and Investment Promotion Framework (TIPF) Also Signed

President Yoon Suk-yeol, on a state visit to Turkmenistan, is exchanging the signed Korea-Turkmenistan joint statement with Serdar Berdimuhamedow, President of Turkmenistan, at the Presidential Palace in Ashgabat on the afternoon of the 10th (local time).
[Image source=Yonhap News]

President Yoon Suk-yeol's state visit to Turkmenistan is expected to result in a 'jackpot' of approximately $6 billion (8.256 trillion KRW) in orders for domestic companies in the energy plant sector. Considering that the cumulative order amount from Turkmenistan to Korean companies has been about $10 billion so far, this new order achievement is remarkable and is expected to signal more active trade and investment between the two countries in the future.

Kim Tae-hyo, the First Deputy Director of the National Security Office, held a briefing on the evening of the 10th (local time) at the press center set up at the Yildiz Hotel in Ashgabat, the capital of Turkmenistan. He stated, "Based on the Trade and Investment Promotion Framework (TIPF) signed this time, we expect an expansion of trade and investment between the two countries," and added, "We have agreed to strengthen cooperation in energy, industry, trade, economy, and the green digital economy sectors." During this state visit, eight cooperation documents were also signed between the governments and companies of the two countries.

According to the Presidential Office, Hyundai Engineering signed the 'Basic Agreement for the 4th Desulfurization Facility at the Galkynysh Gas Field' and the 'Phase 2 Cooperation Agreement for the Normalization of the Kiyanly Polymer Plant' with Turkmenistan's Gas Company and Chemical Company, respectively, raising expectations for another major export deal.

Park Chun-seop, Senior Secretary for Economic Affairs, said at a local briefing, "Including two projects by Hyundai Engineering?the 4th desulfurization facility at the Galkynysh Gas Field and the Kiyanly Plant normalization project?and one project by Daewoo Construction for the urea and ammonia fertilizer plant, a total of three projects worth $6 billion in orders are expected." He emphasized, "With Hyundai Engineering signing the basic agreement for the 4th desulfurization facility at the Galkynysh Gas Field, the green light has been turned on for the second order in 15 years since the first desulfurization facility order in 2009."

The two governments also signed the Trade and Investment Promotion Framework (TIPF) during this state visit. TIPF is an institutional mechanism for strategic cooperation not only in trade and investment but also across industry and energy sectors, responding to changes in the global trade order. Senior Secretary Park said, "The Korea-Turkmenistan TIPF signed this time is the 23rd TIPF we have concluded, and it is the third among Central Asian countries following Uzbekistan in September last year and Kazakhstan in October last year."

Meanwhile, on the morning of the 11th (local time), President Yoon is scheduled to attend the Korea-Turkmenistan Business Forum held in conjunction with the state visit, deliver a keynote speech, and request the Turkmenistan government's cooperation for the advancement of Korean companies in the energy and plant sectors. Afterwards, he will hold a meeting and luncheon with Gurbanguly Berdimuhamedow, former president, father of current President Serdar Berdimuhamedow, and the country's supreme leader and chairman of the People's Council, before moving on to the next country on his tour, Kazakhstan.