Mongolia wants to resurrect the ancient capital of the Mongol Empire as a modern-day urban hub.
Mongolia is pursuing an ambitious initiative to move its capital, Ulaanbaatar, to Kharkhorum (also known as Karakorum) – the ancient capital of the Mongolian Empire. Mongolia’s rapid urbanization has reached its peak, with one-third of the country’s population dwelling in the capital. A new capital might help solve some of the challenges of overcrowding and attract modern talents and investments. 
Mongolia’s capital, Ulaanbaatar, is known as one of the highest and coldest capitals in the world. Surrounded by four sacred mountains, Ulaanbaatar has been the symbol of modern Mongolia for decades. The capital was and still is a place for nomads to seek opportunities and a modern way of life. 
However, in the last several decades, Ulaanbaatar’s size has tripled, surpassing what the city’s infrastructure could handle. Despite efforts to decentralize the capital, the mayor’s offices – the current and previous administration – have been stuck playing catchup. One of the solutions to this challenge is to move the capital to Kharkhorum.
Across Asia, several other countries are moving their capitals in an attempt to address overcrowding and unbalanced regional development. Indonesia, for example, is building a new capital at Nusantara on Borneo Island. The presidential office relocated there in 2024. 
South Korea is also heading toward relocating its administrative capital to the historic city of Sejong. President Lee Jea-myung vowed to relocate the presidential office to Sejong, hoping to create a more balanced society.  
In 2022, Mongolian President Khurelsukh Ukhnaa passed a decree to restore Kharkhorum as the capital. The city, located 230 kilometers southwest from Ulaanbaatar, is famous as the historic capital of the Mongol Empire. The move to revive Kharkhorum will require both domestic and foreign talents and investors. If implemented efficiently Mongolia could create a new city, with much more modern elements while encapsulating its deep historic roots. 
Mongolia’s once-and-future capital, Kharkhorum, and the current capital of Ulaanbaatar. Via Google Maps.
Kharkhorum once represented a melting pot, linking the Eurasian steppes to the farflung corners of the Mongol Empire, from the Pacific to the Persian Gulf and even eastern Europe. Songs, poems, and anecdotes from the time about the liveliness of the ancient capital during its heyday in the 13th century. Kharkhorum hosted merchants and artisans from the East and the West; Christian missionaries, Muslim scholars, and Buddhist monks lived side-by-side. Archival documents mention Buddhist temples, Islamic mosques, pagan temples, and Christian churches in Kharkhorum. Today, one of Mongolia’s oldest surviving Buddhist temples, Erdene Zuu, is found in Kharkhorum.
Kharkhorum was initially built as a military base campground, given its large land space. The city was then transformed into a cosmopolitan hub for political and economic affairs. In 1235, under Ogedei Khan, Chinggis Khaan’s son and successor, Kharkhorum became a walled capital. 
According to historians, Kharkhorum was eventually neglected and lost its power after Khublai Khan – the grandson of Chinggis Khaan – decided to move the Mongol capital to Khanbaliq (modern day Beijing), to gain more direct access to diverse trade routes. 
Later, as Khublai Khan’s Yuan dynasty came to end, in 1388, forces from the Ming dynasty destroyed the capital and it has been in ruin since. Kharkhorum’s ruins remain a vital historic site for the Mongol Empire. The ancient city showcases modern Mongolia’s approach toward protecting cultural heritage, increasing tourism, and expanding international partnerships in specifically reviving archeological findings. 
Given Kharkhorum’s deep historical relevance and its role in the Mongol national identity, the government has registered the Orkhon Valley Cultural Landscape – which includes Kharkhorum – as a UNESCO World Heritage Site. 
In today’s Mongolia, Ulaanbaatar has engulfed the vast majority of financial and human resources, given the extreme centralization. The New Kharkhorum project will create new opportunities for development and modernization. The Mongolian government has dedicated 189 hectares of area for the special project. Construction has already begun and major cooperation agreements with Mongolia’s international partners are underway.
In 2024, Mongolia registered 428 teams from 54 countries to compete to showcase an urban concept for the development of New Kharkhorum. Teams from China, Italy, Mexico, Singapore, Russia, Turkiye, Bangladesh, and 18 other countries joined the competition. 
The winning team was a consortium of Chinese state-owned companies, with a design “aimed at creating a new green, cultural, resilient and happy city,” according to China State Construction Engineering Corporation. China is already investing in the New Kharkhorum project, particularly in road and bridge construction and engineering.
Member of Parliament Dr. Bum-Ochir Dulam, who is also a professor of anthropology, stressed the importance of welding old and new together in Kharkhorum. “Imagine people going there and understanding the history of humankind,” he said in an interview. “This is why we are restoring it.”
According to the administration of former Prime Minister of Oyun-Erdene Luvsannamsrai, “As part of the city’s master plan, it is envisioned to establish a residential area accommodating 500,000 people, a 4E-class international airport, an agricultural cluster, a 4,800-hectare transport and logistics center, and a 2,450-hectare tourism zone around Lake Ogiinuur.” 
The relocation of the capital will require approximately $30 billion. The mayor of Kharkhorum Khaltar stated that the reconstruction of the city will use modern tools, merging Mongolia’s historical identity with modern, smart, digital, and green urban concepts. 
The planned new capital may become Mongolia’s first nuclear-powered city, with assistance from Russia’s Rosatom to build small modular reactors (SMRs). In 2024, during Russian President Vladimir Putin’s state visit to Mongolia, Putin mentioned Russia’s possible assistance in diversifying Mongolia’s energy with small scale nuclear power plants. The deputy chairman of Mongolia’s parliament, Purevdorj Bukhchuluun, stated that if Mongolia were to start the nuclear-power project today, “in 10 to 15 years, we would have solved our energy issue.” 
As Mongolia makes a bold move to relocate its capital, diverse cooperation opportunities will arise. In establishing the New Kharkhorum City, Mongolia’s tech-savvy partners – not only China but Japan and South Korea – will play a major role in investment, introducing modern urban planning and development. If implemented successfully and efficiently, the New Kharkhorum City can be a major boost to the country’s investment portfolio, urbanization, and economy.
By Bolor Lkhaajav

Published Date:2026-01-08