Korea-Uzbek Trade Agreement Negotiations Underway... Energy Talks Including Refinery Modernization

Agreement on Signing MOU for Digital Industry Cooperation

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy speaking at the 10th Korea-Uzbekistan Trade and Economic Joint Committee held via video conference from 3 PM on the 6th. (Photo by Ministry of Trade, Industry and Energy)

[Asia Economy Reporter Moon Chaeseok] South Korea and Uzbekistan are strengthening cooperation in the economic and trade sectors, including actively promoting the commencement of trade agreement negotiations.

On the 6th, Sung Yun-mo, Minister of Trade, Industry and Energy, held the "10th Korea-Uzbekistan Trade and Economic Joint Committee" via video conference with Sardor Umurzakov, Uzbekistan’s Minister of Investment, Foreign Trade and Cooperation and Deputy Prime Minister.

The Trade and Economic Joint Committee is an official cooperation channel between the two governments. This meeting was arranged by agreement between the chief representatives of both countries to discuss follow-up measures from phone calls between the two heads of state in April and October and to promote the development of economic and trade relations.

Both sides agreed to declare the start of Korea-Uzbekistan trade agreement negotiations at an appropriate occasion such as a high-level meeting to expand the trade base.

Uzbekistan ranks third in trade volume with Korea among the Commonwealth of Independent States (CIS) countries and has the highest number of domestic companies operating there, making it a country of great importance in terms of expanding trade and investment.

The trade agreement between the two countries is also significant as the first case of the new Free Trade Agreement (FTA) model promoted by the government.

The new FTA model is a "sustainable trade and investment cooperation model" that, beyond market opening, aims to contribute to the economic growth of developing countries and strengthen cooperative relations by sharing Korea’s industrial development experience.

Furthermore, both sides agreed to closely cooperate to achieve results from ongoing joint cooperation projects.

The two countries have completed or are progressing with multiple projects such as the basic design contract for the modernization of the Bukhara oil refinery, the Technopark refrigerator factory, the construction of the National Children’s Hospital, the second phase of Uzbekistan’s education informatization project, and the Kashkadarya GTL plant construction.

Consultations related to investment projects by domestic companies, including tungsten resource development and landfill gas power generation, are also actively taking place between partners on both sides.

At this meeting, Minister Sung proposed the necessity of a "Digital Industry Cooperation Memorandum of Understanding (MOU)" to respond to the 4th Industrial Revolution and the non-face-to-face economy, and both sides agreed to sign it at an appropriate occasion.

Based on the MOU, there are plans to expand cooperation into future new industries such as digital healthcare and digital energy industries.

The government requested the cooperation of the Uzbekistan government to resolve difficulties faced by domestic companies in cooperation projects with Uzbekistan, such as the Surgil gas chemical plant and CNG cylinders.

Support was also requested regarding the submission of letters of intent by domestic companies to participate in bids for gas combined cycle and new and renewable energy projects ordered by the Uzbekistan Ministry of Energy.

This content was produced with the assistance of AI translation services.