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    Uzbekistan Money Central Asia

    South Korea's ROAD to Central Asia

    South Korea's ROAD to Central Asia

    South Korea, Japan, and China are among the most active Asian nations engaging with Central Asia, each proposing unique interaction formats with the region's countries. For example, South Korea's President Yoon is currently visiting Central Asia to discuss launching the Korea-Central Asia Initiative K-Silk Road, a regular summit set to debut in Seoul in 2025. This initiative, also called ROAD, is one of the key topics of the current negotiations, and it stands for Resources, Official Development Assistance, Alliance, and Development Cooperation.

    #Uzbekistan and #SouthKorea presidents to participate in #jointbusinessforum

    At the #invitation of @president_uz Shavkat Mirziyoyev, @President_KR Yoon Suk Yeol of South Korea will undertake a #statevisit to Uzbekistan from June 13-15.

    👉Details — https://t.co/e4ty5Jqb2G… pic.twitter.com/vRzSSvcq30

    — Daryo | Central Asia & Afghanistan (@DaryoEng) June 11, 2024

    Unlike other major players in Central Asia, such as Russia, the US, and the EU, the recent South Korea-China-Japan trilateral summit—held after a five-year hiatus—has fostered optimism about improving their relations with Central Asian countries. This development suggests a potential reduction in conflicts of interest in their interactions with the region. Additionally, Russian Ambassador to South Korea, Georgy Zinoviev, noted that South Korea is signaling a readiness to swiftly restore relations with Moscow once the conflict in Ukraine ends. In this context, cooperation between South Korea and Central Asian countries appears promising.

    Korea's strategy in Central Asia in the broader Eurasian context

    South Korea itself views its strategy in Central Asia within a broader framework of engagement with the Eurasian space, which opens up new perspectives for the countries of the region especially in the context of developing cooperation in transportation and energy. South Korea's Eurasia Initiative, launched by President Park Geun-hye in October 2013, aims to enhance South Korea's integration with the Eurasian continent through economic, energy, and transportation cooperation. This initiative aligns with China's Belt and Road Initiative and involves multiple strategic objectives.

    The primary goals of the Eurasia Initiative include promoting peaceful prosperity in the region and addressing North Korea's nuclear ambitions through engagement and economic integration. The initiative emphasizes the development of a trans-Korean railway (TKR) that would connect South Korea to the broader Eurasian Land Bridge, significantly reducing overland shipping costs and enhancing South Korea's export capabilities​. Central to the initiative is the Greater Tumen Initiative (GTI), a regional cooperation mechanism supported by the UNDP, which includes South Korea, China, Mongolia, and Russia. The GTI focuses on enhancing transport, trade, investment, tourism, energy, and environmental cooperation. South Korea views GTI as a vital channel to actualize the Eurasia Initiative by linking rail and road networks, energy logistics, and infrastructure from Busan to Europe. South Korea's engagement with Central Asian countries is a critical aspect of the Eurasia Initiative.

    President Moon Jae-In meets Uzbekistan's Shavkat MIrziyoyev
    credit: Korean Clickers

    During President Moon Jae-in's administration, South Korea expanded its cooperation with Central Asian nations, focusing on energy, infrastructure, and trade. Significant agreements and projects have been established with countries like Turkmenistan, Uzbekistan, and Kazakhstan, emphasizing the development of gas fields, petrochemical plants, and infrastructure modernization​. The success of South Korea's Eurasia Initiative hinges significantly on the geopolitical landscape, especially the intricate relationship with North Korea and the broader dynamics involving major regional players like China and Russia. Therefore, the launch of the Japan-South Korea-China leaders' meeting format and the prospects for improving relations between South Korea and Russia are crucial. These developments are pivotal not only for fostering regional stability but also for enhancing South Korea's strategic engagement with Central Asian countries.

    4 areas of cooperation between South Korea and Central Asian countries

    From June 10 to June 15, the President of South Korea is visiting the Central Asian countries of Turkmenistan, Kazakhstan, and Uzbekistan. This visit marks the first state visit to Turkmenistan by a South Korean president in the past five years. Accompanying the President on this trip are First Lady Kim Keon Hee and representatives from over 60 Korean companies.

    The South Korean President will arrive in Kazakhstan on Tuesday for a three-day visit, during which he will hold a summit with Kazakh President Kasym-Jomart Tokayev to discuss deepening the bilateral strategic partnership. Additionally, he will meet with ethnic Koreans and South Korean citizens and participate in a Kazakh-Korean business forum on June 12.

    In Uzbekistan, the President will meet with the Uzbek leader and attend a bilateral business forum.

    The South Korean presidential administration has also announced plans to intensify its role in Central Asia, focusing on cooperation in four key areas: natural resources, economic development assistance, cultural exchange, and expanding official and private contacts. Specific cooperation priorities will be identified for each of the five Central Asian countries: Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan, and Tajikistan. For example, cooperation in Kazakhstan will concentrate on energy and infrastructure, in Kyrgyzstan on water resources and tourism, and in Turkmenistan on constructing energy plants.

     

    South Korean C5+1

    South Korea initially emphasized the development of the C5+1 format in Central Asia. The first meeting, held in 2007, included the deputy foreign ministers of five countries, where they discussed cooperation in tourism, culture, and the economy. By 2012, the format was elevated to the level of foreign ministers' meetings (with the participation of deputy foreign ministers of Kazakhstan and Turkmenistan), expanding the agenda to include healthcare, medical services, and green energy technology. In 2023, the Republic of Korea-Central Asia Interparliamentary Forum was launched. The first interparliamentary forum took place in Seoul last year, and the second meeting of the speakers of the "Republic of Korea - Central Asia" parliaments is planned for 2024 in Turkmenistan.

    Prospects for the development of relations: "technology in exchange for raw materials"

    In the future, relations between South Korea and the countries of Central Asia are likely to develop according to the formula "technology in exchange for raw materials." Even before this visit, relations had been trending in this direction. Almost all Central Asian countries supply South Korea with raw materials: cotton, aluminum from Tajikistan, gold from Kyrgyzstan, and uranium, copper, zinc, and iron from Kazakhstan. Amid the current conflict in Ukraine, the export of technology from Korea to the region has increased.

    During the Korean President's visit to Turkmenistan, a Framework Agreement on Cooperation was signed between the State Concern "Turkmengaz" and Hyundai Engineering Co., Ltd. This agreement involves the design, construction, and acquisition of commercial gas treatment facilities with a capacity of 10 billion cubic meters, as well as the development of wells at the fourth stage of the Galkynyş gas field. The Turkmen leader has invited Korean companies to participate in projects aimed at reducing methane emissions and in the development of information technologies, artificial intelligence, telecommunications, and space.

    South Korea has invested significantly in Uzbekistan and Kazakhstan. In Uzbekistan, South Korea is an important investor, contributing over $7 billion by 2021, and is involved in various sectors, including the automotive industry through the Uz-Daewoo car plant and logistics with Korean Air Cargo managing Navoi Airport. The two countries have signed numerous agreements, including the creation of free economic zones like Navoi and Angren, and are working on the Agreement on Sustainable Trade and Economic Partnership (STEP) to further bolster economic ties.

    In Kazakhstan, South Korea is also a one of the key investor, with investments surpassing $8 billion by 2023. Projects include the modernization of oil refineries and the construction of petrochemical complexes. Bilateral trade agreements and strategic partnerships have been strengthened through initiatives like the "Fresh Wind New Economic Program," which covers infrastructure, agriculture, healthcare, and cultural exchanges.

    Written by: Eldaniz Gusseinov

    Eldaniz Gusseinov, is a Non-Resident Research Fellow at Haydar Aliyev Center for Eurasian Studies of the Ibn Haldun University, Istanbul.

    Follow Daryo's official Instagram and Twitter pages to keep current on world news.

    12.06.2024, 11:52   Comments (0)   3627
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