South Korea and Kazakhstan signed more than 30 agreements on the sidelines of President Yoon Sok Yeol’s state visit to Astana.
Following the summit talks with President of Kazakhstan Kassym-Jomart Tokayev, 11 documents on cooperation were signed, including:
1. Agreement on cooperation in the field of energy industry development;
2. Agreement on cooperation in the oil and gas and petrochemical industry;
3. Memorandum of Understanding between the Ministry of Energy of the Republic of Kazakhstan and the Ministry of Trade, Industry and Energy of the Republic of Korea on comprehensive cooperation in the field of electric power industry;
4. Memorandum between the Ministry of Industry and Construction of the Republic of Kazakhstan and the Ministry of Trade, Industry and Energy of the Republic of Korea on comprehensive cooperation in the field of critical minerals and metals;
5. Memorandum of Understanding between the Ministry of National Economy of the Republic of Kazakhstan and the Ministry of Economy and Finance of the Republic of Korea on cooperation in the field of knowledge exchange and development;
6. Memorandum of Understanding between the Ministry of Science and Higher Education of the Republic of Kazakhstan and the Ministry of Science and Information and Communication Technologies of the Republic of Korea on cooperation in the field of science and technology;
7. Memorandum of Understanding between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the Forest Service of the Republic of Korea on cooperation in the field of forestry;
8. Memorandum of Understanding between the Agency of the Republic of Kazakhstan for Civil Service Affairs and the Ministry of Personnel Management of the Republic of Korea on cooperation in the field of personnel management in the civil service;
9. Memorandum of Understanding between the Ministry of Labor and Social Protection of the Republic of Kazakhstan and the Ministry of Labor and Employment of the Republic of Korea in the field of employment and labor;
10. Memorandum of Understanding between the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, the Financial Services Commission of the Republic of Korea and the Financial Supervision Service of the Republic of Korea in the field of banking supervision;
11. Memorandum of Understanding between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the Ministry of Environment of the Republic of Korea on cooperation in accordance with Article 6 of the Paris Agreement.
Another 25 documents, including 18 commercial deals worth US $ 432.5 million, were signed during a business forum with the participation of business leaders and governments of both countries.
One of the key agreements is a memorandum of understanding on partnership in the supply chain of essential minerals, which will pave the way for comprehensive cooperation, ranging from joint exploration to the final use of essential minerals in Kazakhstan. (Yonhap)
The agreement is expected to provide Korean companies with opportunities to participate in the development and extraction of mineral resources in Kazakhstan, which is a major oil producer and has large reserves of uranium, chromium, titanium and rare earth metals.
The Ministry of Industry and Infrastructure Development of Kazakhstan has signed an agreement on joint exploration and development of lithium deposits with the Korean Institute of Earth Sciences and Mineral Resources and SK Ecoplant Co., the energy division of SK Group.
Kazakhstan is the world’s largest supplier of uranium and ranks second in the world in terms of chromium production, which is used for steel hardening and stainless steel manufacture.
The parties also agreed on cooperation in the energy sector, signing an agreement on low-emission electricity generation, renewable energy sources and modernization of power plants.
The Memorandum of Understanding between the environmental ministries provides for cooperation in the implementation of the Kazakh project for the production of electricity from landfill gas in Karasai in the south-east of the country. This is a low-carbon energy project aimed at collecting methane from landfills to convert it into electricity.
Kazakh-Korean economic relations and partnership development plans
Korea is one of the five largest investors in Kazakhstan. In 2023, the volume of Korean investments in the economy of Kazakhstan reached US $ 9.6 billion.
There are more than 700 companies with Korean capital operating in Kazakhstan, including such giants as Samsung, Hyundai, Kia, Lotte, Doosan, Posco.
During the negotiations between President Yoon and President Tokayev, agreements were reached to strengthen cooperation in such areas as infrastructure and production development, finance, energy, ecology, automotive and aerospace industries, IT, and digitalization.
Several exciting projects showcase the deepening ties. Doosan Enerbility is constructing a combined-cycle power plant in Turkestan. Samsung Electronics plans to manufacture household appliances within Kazakhstan. GL Ralpha is poised to build a biopharmaceutical plant in Astana. A full-cycle KIA automotive plant with a US $200 million investment is set to launch next year.
South Korean companies are looking to usher in the next stage of Kazakhstan’s automotive industry by establishing a cluster dedicated to producing automotive components.
Technology transfer is another area of potential collaboration. Korea has proposed providing Kazakhstan with “smart agricultural farm” technologies that leverage artificial intelligence, robotics, and biotechnology.
Kazakhstan, in turn, seeks partnerships with South Korean companies in developing artificial intelligence, building modern data centers, and bolstering cybersecurity.
Kazakhstan supports Seoul’s Strategy for Central Asia
“The positions of Astana and Seoul on topical issues are similar. Our countries are interested in strengthening multilateral cooperation. We agreed to further develop the dialogue in the format of “Central Asia+ Korea,” President of Kazakhstan Kassym-Jomart Tokayev said after talks with President Yoon Suk Yeol.
“Kazakhstan supports the K-Silk Road concept put forward by the Republic of Korea,” he said.
Tokayev also supported the Korean side’s proposal to hold the first summit in this format next year in Seoul. ///nCa, 13 June 2024