Government to Collect $1 Billion Outstanding Payment from Uzbekistan's 'Surgil Gas Field'

The South Korean government has secured the ability to receive $1 billion in outstanding payments for the 'Surgil' gas field project jointly promoted with Uzbekistan. The two countries also plan to strengthen cooperation in various sectors such as healthcare and eco-friendly industries.

The Ministry of Economy and Finance announced on the 8th that Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, during his visit to Uzbekistan to attend the 5th Korea-Uzbekistan Deputy Prime Ministers' Meeting, reached a final agreement on the repayment plan for the outstanding payments related to the Surgil gas field project after six years.

The Surgil gas field project is a joint development between the two countries from 2008 to 2041, producing chemical products and gas. Previously, due to the depreciation of the Uzbek currency, unpaid gas payments amounting to $1 billion had not been recovered since 2017. The government explained, "Through Deputy Prime Minister Choo's visit to Uzbekistan, a repayment plan was finalized through an agreement among the project owners and major creditors on both sides, resolving the difficulties regarding the outstanding payments."

Additionally, the two countries agreed to strengthen cooperation to secure a global value chain. Deputy Prime Minister Choo stated, "If Uzbekistan's resources and Korea's technology create a synergy effect, both countries can secure significant competitiveness in the advanced industry global value chain. For example, the Chirchik Rare Metals Center will surely become a cradle for cooperation in the supply chain of key materials in the semiconductor and battery sectors."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho attended the 'Korea-Uzbekistan Economic Deputy Prime Minister Meeting' held at the IBC (International Business Center) in Tashkent, Uzbekistan, on the 7th (local time), and had a brief preliminary talk with Deputy Prime Minister of Uzbekistan Jamshid Khojayev.

He also requested enhanced cooperation between the two countries to ensure that eco-friendly projects such as the establishment of solar panel manufacturing infrastructure and resource circulation and integrated waste management projects lead to tangible results. Deputy Prime Minister Choo proposed focusing on cooperation tasks that can strengthen institutional infrastructure, including supporting new industry talent development policies through universities, the Korea International Cooperation Agency (KOICA) vocational training centers, and startup support centers, as well as Uzbekistan's accession to the World Trade Organization (WTO) and the revision of the customs mutual assistance agreement between the two countries.

During the meeting, the Uzbek government agreed to continue expanding the allocation of cotton cultivation areas to POSCO International, which has entered the local textile industry, and to promptly approve land allocation for the IT business center completed by Korean companies in Tashkent, among other measures to resolve difficulties. The Uzbek government also pledged active support for the participation of Korean companies in highway and high-speed rail projects currently underway to expand transportation infrastructure.

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