South Korea and Uzbekistan are expanding ties beyond their capitals, bringing regional governments and businesses into cooperation traditionally driven by national governments and major companies.
More than 50 officials and regional leaders from the two countries gathered in Seoul on Friday for the first Uzbekistan-Korea Interregional Cooperation Forum, where Seoul pledged policy-financing support and both sides outlined areas for regional investment and cooperation.
Officials said the initiative was aimed at turning national-level agreements into investment, industrial cooperation and jobs by connecting Korean companies and institutions directly with Uzbek regions seeking technology, skills and capital.
The regional cooperation initiative signifies an effort to move bilateral ties closer to where investment decisions are implemented and jobs are created.
But the test will be whether those direct links can turn diplomatic agreements into commercially viable projects.
The gathering comes as Seoul steps up engagement with Central Asia ahead of the first Korea-Central Asia Summit with the region’s five countries next week.
Uzbek Deputy Prime Minister Jamshid Khodjayev called for greater Korean investment in critical minerals, digital technology, transport and agriculture.
“We are interested in combining these opportunities with Korea’s advanced technologies, investment and management expertise,” Khodjayev said.
He said bilateral trade reached nearly $2 billion in the first half of the year and that the two countries were targeting $5 billion.
Korean investment in Uzbekistan has exceeded $8 billion, while more than 700 companies with Korean capital operate in the country, he said.
Khodjayev also cited cooperation with Hyundai Rotem on high-speed trains and Incheon Airport on airport development.
South Korean Deputy Prime Minister and Finance Minister Koo Yun-cheol said Seoul plans to use the upcoming summit to expand economic cooperation with Central Asia, with Uzbekistan playing a central role.
Koo identified critical minerals and energy supply chains, energy and biotechnology, transport and logistics, and human resource development as priority areas.
“If the central governments set the overall direction and open the sea route, it will be the local governments ... that actually launch the ships,” Koo underlined.
He cited cooperation between Incheon and Fergana on special economic zones, South Gyeongsang Province and the Tashkent region on industrial workforce development, and South Chungcheong Province and the Namangan region on smart agriculture.
Koo also pledged government support through policy financing, including the Economic Development Cooperation Fund and Supply Chain Stabilization Fund, saying discussions should lead to “concrete investment projects.”
Officials outlined mechanisms to turn local-government partnerships into projects.
Park Chan-dae, president of the Governors Association of the Republic of Korea, said Korean and Uzbek local governments have established about 30 sister-city and other partnerships.
Park proposed identifying at least one project for each existing partnership and establishing a coordinated channel for investment information and consultations. Incheon and Fergana have already agreed to set up a working group to review project progress quarterly, he said.
Uzbek regional leaders, meanwhile, used the forum to pitch their regions directly to Korean investors.
Fergana Gov. Khayrullo Bozorov said 48 companies with Korean capital operate in the region and trade with Korea reached $70 million in the first half of the year.
Bozorov said Fergana was targeting $1.5 billion in investment involving more than 400 enterprises this year and wanted greater Korean participation in smart agriculture, electronics and automotive components.
Tashkent Gov. Zoyir Mirzayev said 66 companies with Korean capital operate in his region and trade with Korea has exceeded $50 million.
Mirzayev said about 300 meetings and negotiations with foreign investors from various countries this year had resulted in investment agreements worth more than $2 billion.
“There are still many untapped opportunities,” he said, citing industrial development, pharmaceuticals and agricultural processing among potential areas for Korean investment.
Gyeongju, North Gyeongsang Province, meanwhile, has proposed hosting the fourth Korea-Central Asia Local Government Cooperation Forum next year, building on its friendship-city relationship with Samarkand established in 2013.
“For Seoul and Tashkent, the regional track could provide a practical complement to summit-level diplomacy, bringing investment decisions closer to the cities and provinces where projects would ultimately be carried out.”
sanjaykumar@heraldcorp.com
