November 22, 2024

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The 2024 Korea-Mongolia Vision Forum takes place at the Novotel Ulaanbaatar in Mongolia on Tuesday. (Park Hae-mook/The Korea Herald)

South Korean and Mongolian government officials discussed opportunities for cooperation in green energy, mineral resources and trade, emphasizing a shared vision for mutual growth and strategic partnership at the 2024 Korea-Mongolia Vision Forum held Tuesday in Ulaanbaatar, Mongolia.

About 250 representatives from the government, state-run organizations and academic and political sectors attended the event co-hosted by the Ahnsei Foundation, Herald Corporation, Yonsei University and Korea University, with sponsorship from KCH Energy.

In his congratulatory remarks, Batumur, advisor to Mongolia's first deputy prime minister and minister of economy and development, highlighted the potential for expanded collaboration between the two countries.

"South Korea has some of Asia’s most advanced renewable energy technologies. We hope to introduce Jeju Island’s smart energy system to Mongolia,” he said.

Batumur also underscored Mongolia’s efforts to strengthen trade relations with Korea, including pursuing an Economic Partnership Agreement.

Discussions also centered on advancing Mongolia's energy sector, particularly in rare earth elements critical for technologies like semiconductors. Mongolia holds 16 percent of the world’s rare earth reserves, but lacks the technology for efficient extraction, impacting its economic viability.

In November, the two countries launched a joint committee and a partnership center for rare metal research in Mongolia.

Lee Ho-hyeon, Korea's Deputy Minister for Energy Policy of the Ministry of Trade, Industry and Energy, described Mongolia as a "crucial partner" amid global supply chain uncertainties. He noted that further projects are being discussed under the joint rare metals development committee.

Another key challenge discussed was both countries' reliance on China.

Despite being the world’s tenth most resource-rich nation, Mongolia lacks processing technology and exports most of its raw minerals to China, reimporting them at higher costs after preliminary and secondary processing there.

Korea faces similar supply chain challenges, with 90 percent of all key minerals coming from China.

“Korea is constrained in responding swiftly to risk situations as most resources are imported after being processed in China," Chung Joo-hwan, a secretary at Korea's Industry Ministry, said, emphasizing the need to diversify supply chains. He highlighted the importance of the joint rare metals research center with Mongolia in stabilizing supply chains.

The forum also addressed Mongolia's efforts to overcome chronic power shortages and transition to green energy. Mongolia faces severe air pollution due to coal-based heating, with 67 percent of its carbon emissions coming from the energy sector.

With a long-term goal of developing nuclear power, the Mongolian government established a task force in 2022 and is considering the simultaneous development of small modular reactors, according to Baldorj Myagmarsurengi, senior policy specialist at the energy ministry.

Enkhtuvshin Ganbaatar, head of strategy and planning at the ministry, urged Korean companies to invest in Mongolia's energy sector, noting the significant capital required for infrastructure projects. "Mongolia plans to build heating power plants in 10 regions and invites Korean companies to participate in international public tenders," Ganbaatar said.

Jamba Batsuuri, Mongolia’s minister of construction, urban development and housing, also called for Korean involvement in broader infrastructure initiatives: "As part of our 2050 growth plan, Mongolia aims to build a new city and welcomes participation from Korean firms experienced in smart city development."

Choi Ji-won (jwc@heraldcorp.com)