Korean firms expand into Central Asia with AI, shipbuilding and space

230 from Kazakhstan, 180 from Turkmenistan gather with Korean business leaders

From AI and space to shipbuilding and plant construction

Central Asia cooperation moves beyond resources into advanced industries

Key attendees applaud at the Korea-Kazakhstan Business Roundtable hosted by the Korea International Trade Association at the Four Seasons Hotel in Jongno-gu, Seoul, on Tuesday. From left: Democratic Party of Korea lawmaker Song Young-gil, Ministry of Trade, Industry and Energy Trade and Investment Director General Kang Gam-chan, KITA Chairman Yoon Jin-sik, Prime Minister Han Seong-sook, Kazakhstani President Kassym-Jomart Tokayev and Samruk-Kazyna Chairman Nurlan Zhakyupov. [KITA]

Korean companies are expanding their economic cooperation with Central Asia beyond the traditional focus on resources, energy and plant construction into future industries such as AI, space and satellite technology, smart cities and shipbuilding. As global supply chain realignment intensifies the need to secure critical minerals and diversify overseas infrastructure markets, Central Asia is drawing attention as a new strategic market.

The Korea International Trade Association held separate business events in Seoul on Tuesday with Kazakhstan and Turkmenistan, timed to coincide with the first Korea-Central Asia Summit. The presidents of both countries attended in person, signaling their commitment to deepening cooperation with Korean firms.

The first event, a Korea-Kazakhstan Business Roundtable co-hosted by KITA and Kazakhstan's sovereign wealth fund Samruk-Kazyna, was held Tuesday afternoon at the Four Seasons Hotel in Jongno-gu, Seoul. Kazakhstani President Kassym-Jomart Tokayev, Prime Minister Han Seong-sook, KITA Chairman Yoon Jin-sik and Samruk-Kazyna Chairman Nurlan Zhakyupov attended, along with about 230 government and business representatives from both countries.

KITA Chairman Yoon Jin-sik delivers a welcoming address at the Korea-Kazakhstan Business Roundtable held at the Four Seasons Hotel in Jongno-gu, Seoul, on Tuesday. [KITA]

The areas of focus went well beyond conventional resource development. Before the main event, President Tokayev and Prime Minister Han discussed ways to expand economic cooperation and received a briefing on Kazakhstan's Alatau Smart City project.

The cooperation agenda covered smart cities, urban air mobility, critical minerals, finance, science and technology, and AI talent development. The underlying vision is to combine Kazakhstan's natural resources with Korean companies' technological and industrial competitiveness to extend economic cooperation into advanced industries.

In the corporate session that followed, Shinhan Financial, Samsung Electronics, the Korea Institute of Geoscience and Mineral Resources and space company Contec presented concrete proposals for cooperation in financial infrastructure, AI capacity building, critical minerals, and space and satellite technology.

Analysts noted that expanding ties with resource-rich Kazakhstan could help stabilize domestic supply chains, particularly as demand for critical minerals grows amid the rise of advanced industries such as batteries and semiconductors.

The Korea-Kazakhstan Business Roundtable hosted by KITA gets underway at the Four Seasons Hotel in Jongno-gu, Seoul, on Tuesday. [KITA]

A Korea-Turkmenistan Business Forum held at Lotte Hotel in Jung-gu, Seoul, drew about 180 government and business representatives from both countries, including Turkmenistani President Serdar Berdimuhamedov, Prime Minister Han and KITA Chairman Yoon.

The economic partnership with Turkmenistan centers on the country's abundant natural gas reserves. The two sides discussed expanding Korean companies' involvement in plant projects that would convert natural gas into higher-value products such as fertilizers and petrochemicals, rather than simply exporting the raw resource.

Daewoo Engineering & Construction, Hyundai Corporation and Goryeo Shipbuilding Industrial Technology introduced their major projects and future business plans. The parties also agreed to explore new opportunities in shipbuilding and transportation, in line with Turkmenistan's plans to expand its transport and logistics infrastructure.

Daewoo Engineering & Construction last year won a $682 million contract from Turkmenistan's state chemical company to build a fertilizer plant. Whether the company can leverage that experience to secure follow-on projects is being closely watched.

KITA Chairman Yoon Jin-sik delivers remarks at the Korea-Turkmenistan Business Forum held at The Grand Lotte Seoul hotel in Jung-gu, Seoul, on Tuesday, with Turkmenistani President Serdar Berdimuhamedov and Prime Minister Han Seong-sook in attendance. [KITA]

Institutional ties between the two governments are also deepening. On the sidelines of Tuesday's summit, South Korea and Turkmenistan signed 13 agreements and MOUs covering investment protection, the chemical industry and plant construction, infrastructure, railways and smart cities. The investment protection agreement was concluded after 16 years of negotiations.

The scope of cooperation is expanding from energy and plant construction into railway modernization, shipbuilding, new town development, water resources, forestry, and AI and science and technology. There is also growing potential to integrate Korean railway and shipbuilding expertise with Turkmenistan's plans to build a Caspian Sea-linked logistics network.

"Korea and Central Asia are important economic partners that must grow together on the basis of mutual trust," KITA Chairman Yoon said. "We will actively support business-to-business cooperation and ongoing projects so they can continue without disruption, regardless of changes in the external environment."

KITA has steadily expanded its private-sector economic cooperation channels with Central Asian countries. It launched the Korea-Turkmenistan Business Council in 2019 and established the Korea-Kazakhstan Economic Cooperation Committee with Samruk-Kazyna in 2021. The association plans to use the summit as a springboard to broaden cooperation beyond resources and plant construction into advanced industries and infrastructure, helping Korean companies identify new business opportunities.

kwater@heraldcorp.com