South Korean President Lee Calls for Expansion of Mutual Cooperation Model with Mongolia

South Korean President Lee Jae-myung proposed on July 9 that the 'Montan' model, which symbolizes mutual cooperation, should be further expanded. Montan is a blend of the names of South Korea's Dongtan New Town and Mongolia.

During a speech at the 'Korea-Mongolia Business Forum' held at a hotel in Ulaanbaatar, Lee defined 'Montan' as a 'mutually beneficial cooperation model.' He stated, 'The Montan model, which started in distribution, will now expand into various fields such as K-consumer goods, including food, healthcare, and cosmetics, as well as finance, healthcare, education, and artificial intelligence.' He expressed hope that the cooperation memorandum of understanding (MOU) signed by both governments today would serve as a solid foundation for expanding this model.

Since the establishment of diplomatic relations in 1990, trade between the two countries has surged from $270,000 to approximately $700 million last year, a 260-fold increase, while annual people-to-people exchanges have surpassed 360,000.

President Lee emphasized the importance of cooperation in the critical minerals supply chain with Mongolian business leaders. He noted, 'If resource-rich Mongolia, which possesses abundant critical minerals such as copper, molybdenum, tungsten, and rare earth elements, collaborates with South Korea, which has advanced technology, capital, and logistics, we can create significant synergies in the supply chain.' He proposed establishing a 'Rare Metals Cooperation Center' and a 'Rare Metals Committee' as hubs for this collaboration.

He also urged the creation of a foundation for joint growth in infrastructure investment and legal and institutional areas. He stated, 'The 'Korea-Mongolia Comprehensive Economic Partnership Agreement' (CEPA), which both countries have agreed in principle, will undoubtedly mark a new turning point in our economic cooperation. As barriers in goods, services, and investment are lowered, businesses from both countries will be able to expand into new markets and business opportunities in a more stable and predictable environment.'

Lee remarked, 'When I think of Mongolia, the words 'close' and 'similar' come to mind.' He added, 'Looking at the attendees today, I feel as if I am at a domestic event, as it is hard to distinguish between participants from both countries.'

He continued, 'Both South Korea and Mongolia's national flags feature the Taeguk symbol. The 'Yin' and 'Yang' in the Taeguk symbolize opposing values, but they demonstrate true strength when harmonized.'

Lee also referenced a Mongolian proverb, saying, 'I have heard that the strength of many is like an immeasurable sea.' He expressed confidence that this gathering would be a meaningful starting point for a new golden era between the two countries.

Mongolian President Ukhnaagiin Khurelsukh encouraged business leaders from both nations to invest actively. He stated, 'Both countries are actively continuing negotiations to finalize the comprehensive partnership agreement. I am confident that reaching a mutually beneficial agreement soon will provide a solid legal foundation to further enhance trade and investment between our countries and expand cooperation among businesses.'

Gu Ja-eun, chairman of LS Holdings, delivered a welcoming address on behalf of the Korea Chamber of Commerce and Industry. He highlighted the achievements of economic cooperation focused on mineral resources since the establishment of diplomatic relations and stated that cooperation in critical minerals, energy, digital innovation, and consumer markets would become new growth engines for economic collaboration between the two countries.

The forum was co-hosted by South Korea's Ministry of Trade, Industry and Energy and Mongolia's Ministry of Foreign Affairs, with participation from over 300 representatives from both governments and businesses.

From South Korea, major companies such as LS, POSCO, GS Retail, E-Mart, and LG CNS were represented, while Mongolia was represented by key firms including MCS Group, Tavan Bogd Group, and MAK Group in sectors like minerals, distribution, and finance.

In total, over 180 South Korean participants attended, including Gu, Jang In-hwa (Chairman of POSCO Holdings), Lee Hyung-hee (Vice Chairman of SK), Hyun Shin-kyun (President of LG CNS), Heo Seo-hong (CEO of GS Retail), Han Chae-yang (CEO of E-Mart), Hong Jeong-guk (Vice Chairman of BGF Retail), Jang Byeong-ho (CEO of Hanwha Investment & Securities), and Yoon Ho-young (CEO of Kakao Bank). More than 120 Mongolian representatives included Odbayar (Chairman of MCS Group), Baatarsaihan (Chairman of Tavan Bogd Group), Chelmuun (Chairman of MAK Group), Batuusig (Chairman of Sky Hypermarket), and Munkhtuya (CEO of Khan Bank).

During the forum, business leaders from both countries presented on topics such as economic cooperation, critical minerals, digital innovation, and future consumer markets, exploring practical cooperation measures. A total of 21 private MOUs were signed in the presence of Kim Jeong-kwan, Minister of Trade, Industry and Energy, and relevant Mongolian ministers.

Additionally, a booth showcasing Korean consumer goods, including K-Food, K-Beauty, and K-Bio, was set up, attracting attention as these products are sold in Mongolian convenience stores and supermarkets.

Upon arrival at the venue, both leaders first toured the exhibition booths, discussing various Korean products that have become part of Mongolian consumers' daily lives before heading to the forum.

As a side event, an 'Export Consultation Meeting' for the Korea-Mongolia Business Forum was held at the Ulaanbaatar hotel, with participation from over 20 South Korean companies and 40 Mongolian firms. The consultation featured one-on-one tailored discussions in sectors such as K-consumer goods, pharmaceuticals, biotechnology, and ICT.