Feasibility study launched for 56 additional high-speed rail cars

Semiconductor R&D, smart grid policy advisory work planned

Export-Import Bank to extend $70 million credit line to Kazakh bank

South Korea is broadening its economic cooperation with key Central Asian nations, extending collaboration from critical mineral supply chains to advanced industries and financial development assistance. The government plans to use memorandums of understanding signed on the sidelines of a summit to support Korean companies seeking to enter local markets and win contracts.

The Ministry of Economy and Finance announced Wednesday that it had signed multiple MOUs with Uzbekistan and Kazakhstan covering three areas: critical mineral supply chains, advanced industries, and industrial cooperation infrastructure.

President Lee Jae-myung walks off the stage with Central Asian leaders after the first Korea-Central Asia Business Summit at a hotel in Seoul on Wednesday. [Yonhap]
President Lee Jae-myung walks off the stage with Central Asian leaders after the first Korea-Central Asia Business Summit at a hotel in Seoul on Wednesday. [Yonhap]

With Uzbekistan, South Korea will pursue cooperation on the processing, manufacturing and supply chain development of critical minerals. Rather than limiting engagement to raw material imports, the two sides will jointly identify processing and manufacturing projects that can add greater value — creating opportunities for Korean companies to participate in resource development and securing a stable supply of critical minerals.

In the transportation and biotech sectors, the government will advance projects financed through the Economic Development Cooperation Fund (EDCF). A feasibility study under the EDCF will be launched for a project to supply an additional eight train sets — 56 cars in total — of high-speed rail rolling stock to Uzbekistan.

Also included in the feasibility study is a plan to establish a national research facility called the Biome Center at the Tashkent Pharmaceutical Cluster, equipped with genomic analysis and cell storage capabilities.

The government will also expand its Knowledge Sharing Program and Economic Innovation Partnership Program, which share South Korea's policy experience with partner countries.

Starting later this year, South Korea will provide policy advisory services to help Uzbekistan establish a national research and development center for its semiconductor and electronics industries. For Kazakhstan, the government plans to support the development of a roadmap for low-carbon energy transition and the construction of an intelligent smart grid.

Financial support will also be expanded. The Export-Import Bank of Korea will extend a $70 million on-lending credit line to a Kazakh commercial bank, helping local companies finance imports of South Korean products.

South Korea and Uzbekistan will also set up a cooperation framework to continuously identify promising projects. The two sides plan to develop jointly pursuable initiatives centered on Uzbekistan's six national strategic industries, which include critical minerals, AI and smart cities.

The Ministry of Economy and Finance said it will move forward in earnest with the cooperation projects arranged on the sidelines of this week's inaugural Korea-Central Asia Summit. The government plans to translate follow-up measures into tangible results, including helping Korean companies win local contracts and expanding investment and trade.


y2k@heraldcorp.com