Kazakhstan, South Korea upgrade ties as projects near $19 billion

Kazakhstan and South Korea have agreed to upgrade relations to a comprehensive strategic partnership, as the two countries discuss nearly $19 billion in projects spanning energy, critical minerals and infrastructure.

Kazakh President Kassym-Jomart Tokayev announced the move during talks with South Korean President Lee Jae Myung in Seoul on 15 September, signalling a push to deepen economic ties between the two countries.

The partnership is expected to focus not only on boosting trade, but also on expanding joint production and investment.

Investment pipeline grows

A series of agreements signed at a Kazakhstan-South Korea business roundtable in Seoul covered gas processing, oil and gas, critical minerals and infrastructure. Tokayev also outlined projects Kazakhstan is seeking to develop with foreign investors.

The two countries already have 51 joint projects worth more than $4 billion, with automotive manufacturing, mechanical engineering and metallurgy among the largest sectors.

Around 170,000 vehicles were produced in Kazakhstan last year, but Astana is now seeking to increase domestic component production and gradually move towards a full manufacturing cycle.

That effort will require deeper cooperation with companies that already have experience in Kazakhstan. Hanwha Group, which has operated in the country for almost 30 years, is involved in artificial intelligence, digital infrastructure, energy and high-tech manufacturing.

Tokayev invited the group to consider new projects in Kazakhstan that could serve both the domestic market and the wider region.

Alatau City in focus

Alatau City, a new urban development in the Almaty region, also featured prominently in the talks. Kazakhstan is seeking South Korean participation in the project, with Tokayev stressing that foreign investors would receive legal protection.

“Our plans are very ambitious. In particular, we discussed in detail the further development of the Alatau City project. This is indeed a very important project to which we attach great significance. Provisions concerning the status of the city have been incorporated into the Constitution. Korean companies will be provided with all legal guarantees,” Tokayev said.

Economic security and technology

Seoul’s interest in closer economic ties goes beyond individual investment projects. Lee described Kazakhstan as an important partner for South Korea’s economic security, pointing to its energy and natural resources as well as opportunities in high-tech industries.

“The country is not only rich in energy and natural resources, but also has significant potential in promising high-tech industries. We are ready to contribute to the modernisation of Kazakhstan’s industry through our advanced industrial and digital technologies,” Lee said.

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Trade target doubles

Both governments are aiming to double bilateral trade, but the Seoul talks indicate that investment and production are becoming increasingly important pillars of the relationship.

More than 1,000 companies with South Korean capital already operate in Kazakhstan, while a proposed cooperation programme running through 2030 could provide a longer-term framework for new projects.

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Kazakhstan South Korea President Kassym-Jomart Tokayev Lee Jae Myung Oil gas