Following a summit in Tashkent on June 14, 2024, President Yoon Suk Yeol of Korea and President Shavkat Mirziyoyev of Uzbekistan signed a series of agreements ushering in a “New Era of High-Tech and Innovative Cooperation” between the two nations.
These agreements span vital sectors including critical minerals, rail transportation, agriculture, finance, and pharmaceuticals.
“A New era of high-tech and innovative cooperation is beginning in our relations. I am convinced that the Joint Statement signed today on further deepening and comprehensive expansion of the special strategic partnership and about 20 other documents will contribute to these good aspirations,” Mirziyoyev said.
In addition, a package of new investment projects worth $9.6 billion has been prepared within the framework of the joint business forum.
The package of documents includes 17 agreements:
– Intergovernmental Agreement with the Fund for Economic Development and Cooperation;
– Agreements with the Export-Import Bank of Korea and Hyundai Rotem on the purchase and supply of high-speed electric trains;
– Agreement with the Export-Import Bank of Korea on the provision of equipment for science, information and communication education in secondary schools;
– Agreement on the implementation of the project of the innovative pharmaceutical cluster “Pharma Park”;
– Agreement on cooperation in the field of capacity-building of civil servants of Uzbekistan;
– The program of cooperation between the Ministries of Foreign Affairs for 2025-2027;
– Protocol on Cooperation within the framework of the World Trade Organization;
– Protocol on Cooperation in the field of culture;
– Agreement on cooperation in the field of transport;
– An agreement on cooperation on the modernization of district heating systems in the regions of Uzbekistan;
– Partnership agreement in the field of critical minerals;
– An agreement to facilitate the activities of the Uzbek-Korean joint committee on trade and economic cooperation;
– Memorandum of cooperation on the training of qualified and professional personnel;
– Memorandum of cooperation in the field of agriculture;
– Agreement of Uzpromstroybank JSC with the Export-Import Bank of Korea on an interbank master credit line and others.
The partnership agreement in the field of critical minerals provides for cooperation in the field of supply chains of important minerals, from their exploration and development to processing and commercialization.
“The two countries agreed to maximize synergy in the supply chain cooperation by combining Uzbekistan’s abundant mineral resources and South Korea’s advanced technology,” Yoon said in a joint press conference. (Yonhap)
Uzbekistan’s abundance of critical minerals like tungsten and molybdenum, essential for semiconductors and batteries, makes it a prime partner for South Korea’s booming high-tech industries.
The newly signed agreements establish a comprehensive partnership encompassing the entire mineral supply chain, from exploration and extraction to processing, including lithium. These agreements give Korean companies priority in developing economically viable minerals, the presidential office said.
A landmark decision involves the creation of a regional high-tech hub in Uzbekistan, focusing on key areas critical raw materials, semiconductors, chemical industry, mechanical engineering, smart agriculture, infrastructure & urban planning, green energy.
Further solidifying the partnership, the leaders agreed on transportation cooperation. Hyundai Rotem secured a $200 million deal to supply six high-speed trains to Uzbek Railways, while the state-owned railway operators of both nations signed a memorandum on train maintenance collaboration.
“The deal marks South Korea’s first export of high-speed trains developed with homegrown technology,” Yoon said. “It is expected to contribute to the improvement of Uzbekistan’s railway infrastructure and help enhance the bilateral cooperation in the railway sector.”
The summit also highlighted the importance of financial cooperation. A $2 billion cooperation program was signed with the EDCF Foundation to finance social and infrastructure projects in Uzbekistan.
To date, the portfolio of joint projects with the Korean Eximbank and the EDCF has already exceeded $ 3 billion.
The business forum was attended by about 600 government officials and businessmen from both countries, including more than 80 leading companies and banking and financial institutions such as SK Group, Lotte Corporation, KOGAS, POSCO, Samsung, LG, Hyundai, KIA, Doosan, BoMI, Eximbank, EDCF Fund, Korean Bank development and many others.
Within the framework of the event, more than 20 memoranda of understanding and documents aimed at promoting trade and investment in the field of resources, transport, energy and other areas were signed between the government and private sectors.
Uzbek-Korean economic relations and partnership development plans
South Korea has emerged as a crucial partner in Uzbekistan’s economic and industrial transformation. Korean companies and banks are driving this progress with a significant $5 billion currently invested in major projects across Uzbekistan. The total Korean investment footprint in the Uzbek economy stands at $7.5 billion.
Several successful collaborations exemplify this growing partnership. These include: a textile cluster established with POSCO, a multidisciplinary children’s clinic built in partnership with Eximbank and CNT, silicon mining and processing ventures with Shingdong Enercom and other Korean companies.
By the end of 2023, the bilateral trade turnover between the countries reached 2.5 billion US dollars, demonstrating a twofold growth.
There are 726 enterprises with the participation of Korean capital in Uzbekistan. Joint projects are being implemented in industry, energy, automotive, chemical, mining, textile, food, IT and other important areas.
During the summit talks, priority areas for further cooperation were identified.
First of all, it is a deep processing of strategic raw materials based on advanced Korean technologies with further export of highly liquid products to third countries.
It is also planned to expand the activities of the Uzbek-Korean Scientific and Technological Center for Rare Metals.
As part of the partnership in the electrical industry, plans have been outlined to create the first cluster of semiconductor products in Central Asia in the Tashkent region, as well as expand cooperation in the production of electrical engineering and technical silicon.
Uzbekistan intends to develop a strategic partnership with the Korean business in the chemical industry. Support was expressed for plans to implement projects for the production of “green” hydrogen, ammonia and rubber products.
In addition, within the framework of the visit, the creation of a Chemical Technology Center is launched with the support of Eximbank and KOICA.
The important role of Korean companies in the development of the automotive industry was emphasized. So, together with KIA, the production of modern cars has been launched in the Jizzakh region. The President of Uzbekistan called on the Korean business to actively participate in the process of localization of new models of cars and components.
Uzbekistan expressed interest in developing partnership with Korea in the field of digitalization of agriculture, the introduction of “smart” technologies into the agricultural sector.
On the basis of a public-private partnership, Korean companies will participate in the modernization of transport infrastructure.
Another example of partnership with Korean development institutes is the launch of a modern multidisciplinary children’s clinic. An agreement has been reached to accelerate new projects for the construction of a medical cluster in Uzbekistan with a joint university, a hospital and an oncology clinic. ///nCa, 14 June 2024