Economic Cooperation Achievements at Korea-Kazakhstan Summit
Momentum Grows for Entry into Power Energy and Plant Sectors
President Yoon Suk-yeol, who is on a state visit to Kazakhstan, is speaking at a joint press conference after concluding the Korea-Kazakhstan summit with Kassym-Jomart Tokayev, President of Kazakhstan, at the Presidential Palace in Astana, Kazakhstan, on the 12th (local time). [Photo by Yonhap News]
Following President Yoon Suk-yeol's state visit to Kazakhstan, 35 memorandums of understanding (MOUs) were signed between South Korea and Kazakhstan in key mineral supply chains, power energy and plants, and the automotive sector, which is expected to give a stronger boost to the advancement of Korean companies. With Central Asia's top leaders sending a 'love call' to South Korea, which possesses technological capabilities in the energy and plant sectors, a green light has been lit for pioneering new markets. In particular, discussions on the entry of Korean companies into the nuclear power plant construction project under consideration by Kazakhstan during this visit have raised the possibility of securing future nuclear power plant contracts.
Kim Tae-hyo, First Deputy Director of the National Security Office, said at a press briefing held on the 12th (local time) in Astana, the capital of Kazakhstan, regarding the key outcomes of the South Korea-Kazakhstan summit, "The significance lies in the fact that concrete and practical economic cooperation results have been achieved," adding, "The institutional foundation for continuing substantial cooperation in various fields has been strengthened."
In particular, the resource-rich Kazakhstan and South Korea agreed to further solidify their economic security partnership, including securing supply chains. The two countries, having signed the 'Core Mineral Supply Chain Cooperation Partnership MOU,' plan to promote full-cycle cooperation from joint exploration to development, refining, and processing. They agreed to closely cooperate so that Korean companies can participate preferentially in the development and production of minerals confirmed to be economically viable.
Kazakhstan holds the world's top market shares in key minerals: uranium (1st place, 43%), chromium (2nd place, 15%), titanium (3rd place, 15%), and bismuth (5th place, 0.8%). The two countries included lithium, chromium, manganese, rare earth elements, cobalt, tungsten, and copper in the supply chain MOU and agreed to establish the 'South Korea-Kazakhstan Core Mineral Supply Chain Dialogue (led by Deputy Minister-level representatives)' to maintain close consultations.
President Yoon Suk-yeol, who is on a state visit to Kazakhstan, is speaking at a joint press conference after concluding the Korea-Kazakhstan summit with Kazakh President Kassym-Jomart Tokayev at the Presidential Palace in Astana, Kazakhstan, on the 12th (local time). [Photo by Yonhap News]
The 'Lithium Mine Exploration and Development Cooperation MOU' signed among the Korea Institute of Geoscience and Mineral Resources, SK Ecoplant, Kazakhstan's Ministry of Industry and Construction, and Tauken Samruk (a subsidiary of Samruk-Kazyna Mining) also draws attention. An Deok-geun, Minister of Trade, Industry and Energy, said, "Going forward, the Korea Institute of Geoscience and Mineral Resources and Kazakhstan's Ministry of Industry and Construction will cooperate to conduct lithium exploration, and if economic feasibility is confirmed, SK Ecoplant will participate in constructing plants necessary for lithium production and refining," adding, "This will help secure the supply chain of lithium, a key battery material."
The government-to-government 'Power Industry Cooperation MOU' and the corporate-level (Doosan Enerbility and Samruk-Kazyna) 'MOU on Cooperation for the Development of Kazakhstan's Power Industry' are also expected to expand opportunities for Korean companies to participate in environmentally friendly equipment projects for thermal power plants.
Kazakhstan's rapidly growing automotive market is also expected to present opportunities for Korean companies. Kia Motors is building a CKD (Completely Knocked Down) automobile assembly plant with an annual production capacity of 70,000 units through a $280 million joint investment with the local Kazakh company Alur Group ($140 million from Kia Motors). To supply the skilled workforce needed to operate this plant, Kia signed an MOU with Nazarbayev University on industrial workforce training and cooperation. Once the new plant begins full-scale automobile production, exports of automotive parts from South Korea are also expected to increase.
Furthermore, expectations for the nuclear power plant project are growing. Kassym-Jomart Tokayev, President of Kazakhstan, proposed that if the nuclear power plant project proceeds in the future, Korean companies participate and contribute to energy transition efforts. Deputy Director Kim said, "The strong bond established between the leaders of the two countries this time will be a great support for South Korea-Central Asia cooperation."
Meanwhile, President Yoon, who is touring three Central Asian countries, will meet with Kazakhstan Prime Minister Alzhas Bektanov on the 13th (local time). President Yoon will review the implementation tasks of the agendas agreed upon at the summit with President Tokayev the previous day, including cooperation on core minerals.
After the meeting with Prime Minister Bektanov, concluding the 2-night, 3-day state visit to Kazakhstan, President Yoon will move on to Uzbekistan to lay a wreath at the Independence Monument and hold a dinner meeting with the Korean community.
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