South Korea announced on Wednesday that it has reached agreements with Kazakhstan, permitting its companies to engage in the exploration of critical minerals within the Central Asian nation. This move comes as South Korea, renowned for its major semiconductor manufacturers and leading automotive firm Hyundai, seeks to broaden its supply chains.
President Yoon Suk-yeol of South Korea is currently on an official visit to Kazakhstan, following a similar trip to Turkmenistan earlier in the week, with plans for an upcoming visit to Uzbekistan.
The memorandum of understanding signed on Wednesday regarding critical minerals supply chains will enable South Korean enterprises to participate in the exploration of minerals such as lithium, chrome, uranium, and rare earth metals, as outlined by the industry ministry.
South Korea, lacking in abundant natural resources, is home to semiconductor giants and Hyundai Motor Group, the fifth-largest automaker globally, which is increasingly focusing on electrification efforts. A steady supply of critical minerals is deemed essential for the nation, given its status as one of the world’s leading energy importers.
President Yoon, following his meeting with Kazakh President Kassym-Jomart Tokayev in Astana, emphasized the significance of the deal in the context of South Korea’s aspiration to become a global influential entity. He highlighted Kazakhstan’s growth policy as particularly crucial amidst the complexities of global crises and uncertainties.
During President Yoon’s visit to Turkmenistan earlier in the week, South Korea and Turkmenistan also inked agreements pertaining to energy resource development, with potential orders amounting to approximately US$6 billion, according to the President’s office.
These agreements included South Korean construction firm Hyundai Engineering signing deals with Turkmenistan’s state gas and chemical companies. The collaboration between the two nations will encompass further development activities related to the Galkynysh gas field and the restoration of a polymer plant in Turkmenistan, as stated by Hyundai Engineering.
Earlier this month, South Korea convened its inaugural summit with leaders from 48 African nations, with an eye towards leveraging the continent’s mineral resources and export market potential.
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