The trade relationship between Uzbekistan and the Republic of Korea has evolved over the past three years, showcasing shifts in their economic interactions and import-export balances, as it was diclosed by the Statistics Agency in their latest report.
In 2022, the total trade volume between Uzbekistan and South Korea was approximately $1.3bn. However, this figure saw a decline in 2023, dropping to about $1.04bn. The trade volume experienced a rebound in 2024, reaching $1.07bn, indicating a recovery from the previous year's downturn by approximately 2.9%. This indicates a 17.7% decrease in trade volume from 2022 to 2024.
South Korea-Uzbekistan trade turnover from 2022-2024 by Khadicha Abdurashidova
When examining the components of this trade, imports from South Korea played a major role. In 2022, Uzbekistan imported $1.28bn worth of goods from South Korea. This amount decreased notably to $1.02bn in 2023, marking a 20% reduction. The trend slightly reversed in 2024, with imports rising to $1.05bn, reflecting a 2.9% rise from the previous year.
Exports from Uzbekistan to South Korea, on the other hand, have been relatively modest. In 2022, these exports were valued at $17.5mn. The following year, exports increased to $22.6mn reflecting 29.1% rise, and in 2024, they further dropped to $19.5mn, reflecting a 13.7% drop from the previous year. Overall, comparing 2022 and 2024, Uzbekistan’s exports to South Korea saw a slight increase of 11.4%, from $17.5 million to $19.5 million. Despite the recent decrease, the 2024 export value is still higher than that of 2022.
The share of South Korea in Uzbekistan’s total imports reflects its importance as a trade partner. In 2023, South Korea accounted for 6.0% of Uzbekistan’s total imports. This share decreased to 5.6% in 2024. The decrease from 2023 to 2024 was approximately 6.7%. This indicates a slight decline in South Korea's relative share of Uzbekistan's imports over the years.
Focusing on industrial goods, South Korea’s role as a supplier is noteworthy. In 2023, South Korea was responsible for $105.5 mn worth of industrial goods imports to Uzbekistan, which constituted 3.8% of the total industrial goods imports. In the first half of 2024, this amount decreased to $74.8mn, representing 2.6% of the total industrial goods imports. This change reflects a significant reduction, with a 29.3% decrease in value and a 31.6% decrease in share from 2023 to 2024. Despite a 1.7% increase in total industrial goods imports to Uzbekistan in 2023 compared to 2022, the share provided by South Korea has diminished.
South Korea plays a pivotal role in the dynamic development of Uzbekistan. There are currently 726 joint ventures between the two countries, spanning sectors like energy, chemistry, automotive, electrical engineering, textiles, and food industries. Korean investments in Uzbekistan have exceeded $7.5bn, while trade turnover reached $2.5bn in 2023.
During a recent forum on June, the leaders of both nations committed to boosting trade and investment through flexible financing and favorable business conditions. President Mirziyoyev announced plans to establish a regional high-tech hub in Uzbekistan, focusing on raw materials processing, semiconductors, smart agriculture, and green energy.
The forum showcased several strategic collaborations, including textile projects with POSCO and a children's clinic supported by Eximbank and CNT, reflecting the diverse scope of their partnership. New investment projects totaling $9.6 bn were announced, highlighting the strong mutual interest between Uzbekistan and Korean businesses. These projects cover key areas such as semiconductor production, green hydrogen and ammonia production, and the establishment of a Chemical Technology Center. Uzbekistan also aims to leverage Korean expertise in digitalization, infrastructure, and urban planning. Upcoming projects include a Semiconductor Cluster in Tashkent and advancements in "smart" agriculture.
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