TASHKENT, President Yoon Suk Yeol’s Central Asia tour focused on boosting economic ties with resource-rich countries as part of his diplomatic push to secure critical minerals and energy supplies amid global supply chain uncertainties.
Yoon wrapped up a weeklong trip to Kazakhstan, Uzbekistan and Turkmenistan on Saturday as South Korea seeks deeper engagement with the strategically significant region rich in vital resources essential for cutting-edge chip and battery industries.
The state visits followed the first-ever Korea-Africa summit held last week, which focused on forging a critical mineral partnership in the region.
During his first trip to Central Asia since taking office in May 2022, Yoon introduced the “K-Silk Road” initiative, centered on creating a new cooperation model by linking South Korea’s innovative capabilities with Central Asia’s abundant resources and development potential.
South Korea, home to Samsung Electronics, SK hynix and major battery makers, aims to diversify its import port
folio of key industrial materials to reduce its reliance on a limited set of countries, including China.
South Korea, the world’s fourth-largest buyer of crude oil and natural gas, has also been seeking to enhance energy security amid growing geopolitical risks that weigh on the global supply chain.
At the top of the agenda was forging partnerships on the critical mineral supply chain.
South Korea signed a bilateral critical minerals supply chain partnership each with Kazakhstan, Uzbekistan and Turkmenistan, paving the way for comprehensive cooperation, from joint exploration to the final use of these minerals.
Kazakhstan is the largest oil producer in Central Asia and a major gas producer, with the largest proven oil reserves in the Caspian Sea region. Turkmenistan’s natural gas reserve ranks fourth in the world, while Uzbekistan’s subsoil is rich in oil, natural gas, coal and uranium.
During the trip, Korean companies finalized major infrastructure deals.
Korean railway manufacturer Hyundai Rotem inke
d a US$200 million deal to supply six high-speed trains to Uzbekistan Railways Corp., the first export of high-speed trains developed using Korean technology.
In Turkmenistan, Hyundai Engineering Co. signed two agreements with Turkmenistan’s state-run companies to build a desulfurization facility and resume operations at a chemical plant. Daewoo Engineering and Construction Co. is bidding for a contract to build two fertilizer plants.
These contracts are estimated to be worth approximately $6 billion, according to Park Chun-sup, senior secretary for economic affairs.
Principal Deputy National Security Adviser Kim Tae-hyo said the summit diplomacy laid the groundwork for building mid- and long-term relationships by broadening the scope of cooperation.
“While South Korea has mainly focused on energy and mineral development as well as infrastructure construction, efforts have been made recently to integrate resource, energy and infrastructure cooperation with green initiatives and atomic energy to address cl
imate change,” Kim said in a briefing Friday.
With Russia’s influence waning and China’s clout rising in recent years, Seoul officials emphasize South Korea’s commitment to practical cooperation free from political motives and its economic success story as a model for the former Soviet Union states that gained independence in 1992.
“When we engage in economic cooperation in Central Asia, there are no hidden agendas, only pure development cooperation such as EDCF (Economic Development Cooperation Fund), talent development and technological collaboration. They seriously seek solutions that promote mutual prosperity from an economic perspective,” a presidential official said.
Prime Minister Han Duck-soo said Yoon’s Central Asia trip is “a strategic summit diplomacy focused on broadening economic territory” and called for related ministries to implement the support measures.
“To ensure that the achievements of summit diplomacy help revitalize the economy, the public and private sectors should closely work tog
ether to swiftly take follow-up actions,” Han said in a Cabinet meeting Tuesday.
Although the summits culminated in signing memorandums of agreements on the mineral supply chain, such as joint lithium mine exploration, and the development and commercialization of rare metals, it is expected to take a long time to produce tangible results.
The process of developing a mining project can take five to 25 years to become operational and generate revenue, with many projects failing despite substantial efforts and investments. Mineral refinement also poses challenges due to its energy intensity and the toxic by-products produced.
Source: Yonhap News Agency