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Korea an ideal partner to help Mongolia grow, Seoul's envoy says www.koreajoongangdaily.joins.com
Mongolia seeks to diversify its trade channels beyond China and Russia through its "third neighbor policy," and South Korea could be the ideal partner, said Korean Ambassador to Ulaanbaatar Choi Jin-won.
Choi said that Korea and Mongolia need a “success story” in their economic cooperation as he sat for an interview with the Korea JoongAng Daily and two other Korean media outlets at the Korean Embassy in Ulaanbaatar on April 16.
"Korea and Mongolia have a close relationship based on solid people-to-people exchanges, but I think Korean investments in Mongolia should be more strategic," Choi said. "I think we should contemplate how to develop our close people-to-people ties into economic cooperation at the moment."
Korea and Mongolia marked 35 years of bilateral ties last month. Korea has had a profound cultural impact on Mongolia, with Korean brands readily seen in everything from daily essentials to snacks and beverages. Korea also has the highest number of flights to and from Mongolia, with around 80 flights a week in the summer season, said the ambassador.
However, economic cooperation was relatively weak. According to the National Statistics Office of Mongolia, Korea accounted for only 1.62 percent of foreign direct investment in 2023, ranked ninth out of 35 listed nations.
Given that Mongolia has rich reserves of minerals and excellent development potential, understanding what the country needs would yield “actual outcomes” for both countries and allow them to become “genuine partners” for Mongolian national development, according to Choi.
Choi also said Mongolia supports South Korean foreign policy regarding the North Korean nuclear threat as a country that identifies itself as a member of the Northeast Asian community.
The following are edited excerpts from the interview.
Q. The spread of Korean culture is increasingly noticeable in Mongolia. How do you view the so-called “Koreanization” of Mongolia? What other opportunities can strengthen the bilateral relationship?
A. I personally dislike referring to the spread of Korean culture in Mongolia as “Koreanization.” The phenomenon is a mixture of complicated aspects, with the Mongolian people seeking more convenient services as their society develops and acquiring a familiarity with Korean culture through visits to Korea. It is estimated that some 300,000 Mongolians have been to Korea as of this year.
The spread of Korean culture in Mongolia should be seen as a foundation for elevating bilateral economic cooperation. Korea should contemplate how to develop solid people-to-people exchanges and friendly ties into economic cooperation and how to make strategic investments in this country.
Regrettably, there has been no large-scale Korean investment in Mongolia. Korea accounts for less than 10 percent of total foreign investment in Mongolia. Also, no Korean conglomerate operates a corporate branch in Mongolia. This appears because they assess Mongolia as a less favorable export destination since it lacks seaports.
Mongolia wants to diversify its trade channels through its third neighbor policy. Mongolia's economy now depends on China, the destination for around 90 percent of its exports, and Russia, a major energy supplier. In this context, Korea has potential among countries categorized as third neighbors.
I think Korean cosmetics manufacturers have potential in the Mongolian market, which has a population of 3.3 million. Mongolians, regardless of their age, show much interest in skin care products as the country has arid air. Whenever our embassy offers Korean beauty products to local guests, they always welcome them.
Korea has provided Mongolia with official development assistance (ODA) since the 1990s. What is the most important thing in implementing ODA? Also, have there been any successful projects so far?
It is crucial to provide assistance that corresponds with Mongolia's stated needs rather than offering help unilaterally. Knowing what Mongolia wants and what support would be conducive to their long-term national development matters the most.
Between 2021 and this year, the Korea International Cooperation Agency (Koica) provided $6 million and implemented an ODA project titled “Promoting gender equality in public decision-making and women’s empowerment in Mongolia.” The Korean agency helped revise Mongolian laws to better represent women by introducing a zipper system (an electoral mechanism to enforce gender parity on candidate lists). Of 126 parliamentary seats, 25.4 percent were won by female candidates. The ratio is higher than that of Korea, which is 20 percent. The project has an excellent reputation for making an actual contribution to gender equality.
Since 2007, Korean agencies and corporations have planted trees nationwide through the Korea-Mongolia Greenbelt Project. Mongolia is now carrying out its own campaign to plant 1 billion trees. It will also host the Conference of the Parties to the United Nations Convention to Combat Desertification (COP17) next year. Mongolia is now gearing up to present environmentally friendly initiatives as its national agenda and lead international dialogue. I believe Korean contributions have influenced Mongolia’s actions.
Recently, Korean agencies and companies expanded into infrastructure-building projects in Mongolia. What is its significance?
A Korean consortium involving the Korea National Railway, the Korea Railroad Corporation, DOHWA Engineering and Soosung Engineering and Consulting won a 60-billion-won bid as a project managing consultant for subway construction in Ulaanbaatar. Korean companies will transfer railway knowledge and oversee the metro management system. Beyond the project itself, the opportunity will help Korean companies build human networks with city officials, which will have immense influence.
Mongolia is highly interested in solving the city’s traffic congestion and improving sewage and energy systems, which can be business opportunities for Korean corporations. Solving urban problems such as air pollution and traffic congestion can mutually benefit both countries.
Mongolia is rich in mineral resources, which could be helpful to Korean technology companies. How are the two countries communicating regarding cooperation in the mining industry?
Bilateral cooperation in the mining industry is underway. The two countries held a Korea-Mongolia Rare Metals Cooperation Joint Committee session in late March. The Korean government also promised to provide ODA to open a center for rare metal cooperation in Ulaanbaatar. Mongolian participation shows that they have expectations from Korea regarding the mining industry.
However, Korea and Mongolia need a success story. Despite the boundless opportunities between the two countries, issues regarding foreign investor protection and logistics should be handled. Korean investments in the mining industry in Mongolia have been relatively limited compared to large-scale Australian investments. The situation has resulted in the minerals being exported to China without added value.
Mongolia maintains diplomatic ties with North Korea. What role can Mongolia play amid rapidly escalating geopolitical tensions in Northeast Asia?
Mongolia has a clear identity that it belongs to Northeast Asia, believing that peace and prosperity in the region are critical to its national survival. Mongolia maintains a firm stance that nuclear weapons in North Korea or on the Korean Peninsula should not cause instability.
Regarding Mongolian foreign policy, the basic premise is that South Korea is a partner that shares the values of democracy, human rights and market economy. Mongolia has supported our diplomatic policies. Yet it is also true that Mongolia maintains friendly relations with North Korea, Russia and China.
Mongolia launched the Ulaanbaatar Dialogue in 2014 to discuss means to pursue regional peace and security in Northeast Asia. Last year, the United States and Spain participated in the dialogue. Although Ulaanbaatar attempted to invite Pyongyang to the table, North Korean representatives did not attend. Mongolia supports South Korea and calls for peace through dialogue. Mongolia has enforced the 2019 UN Security Council resolution and sanctions measures prohibiting North Korea from making money overseas by sending North Korean laborers back to Pyongyang.
Did the embassy hold any special events to commemorate the anniversary, or is it planning any more celebrations?
We are trying to incorporate the theme of 35 years of bilateral relations into all events this year.
In Mongolia, 35 years of diplomatic ties are considered relatively short, as the country has ties with countries from the former Communist blocs that exceed 70 years. Despite such a perception, I believe Korea and Mongolia should pursue more productive and stable cooperation to yield actual achievements.
On March 26, when the two nations marked exactly 35 years of ties, I held a face-to-face talk with Mongolian Prime Minister Oyun-Erdene Luvsannamsrai upon my request. Also, on April 15, the embassy convened a seminar with the state-run Bank of Mongolia, Mongolian entrepreneurs and Korean businesspeople in Mongolia, who are interested in the inflation outlook and economic growth rate in Mongolia.
Regarding an annual Korea Week event where taekwondo athletes and contemporary gugak (traditional folk music) musicians perform in Sukhbaatar Square, we plan to scale up the occasion this year to celebrate the 35th anniversary of ties.
BY LEE SOO-JUNG [lee.soojung1@joongang.co.kr]
Published Date:2025-04-29
