President Lee Jae-myung has made a state visit to Mongolia, the first by a South Korean leader in 15 years, resulting in several significant outcomes. The two countries have reached a preliminary agreement on a Comprehensive Economic Partnership Agreement (CEPA), which will allow South Korea to import key minerals from resource-rich Mongolia without tariffs. Additionally, they agreed to explore peace initiatives for the Korean Peninsula through Mongolia, which maintains friendly relations with North Korea. The two nations also plan to increase people-to-people exchanges to 500,000 by 2030, among other notable developments.
The economic complementarity between the two countries is substantial. Mongolia is rich in resources such as rare earth elements, copper, and molybdenum, but has a relatively weak industrial base. In contrast, South Korea boasts world-class manufacturing capabilities in semiconductors, batteries, automobiles, and shipbuilding, yet relies heavily on imports for key minerals. This creates an ideal cooperative structure where resources and technology can be combined.
However, the outcomes of this summit are not only significant for the bilateral relationship between South Korea and Mongolia. They also represent a crucial turning point for revitalizing the New Northern Policy, which has seen diminished momentum. National Security Office Director Wi Seok-ryeol stated that discussions were held on strengthening cooperation by linking South Korea's New Northern Policy with Mongolia's Third Neighbor Policy.
The Mongolian government has focused on diversifying its economic and security partnerships beyond its two neighbors, Russia and China, through its Third Neighbor diplomacy. This strategy aims to reduce dependence on specific countries by expanding cooperation with democratic nations such as the United States, Japan, the European Union, and South Korea. Suhe Suhbold, Mongolia's ambassador to South Korea, emphasized in a December interview that official documents identify the U.S., Japan, the EU, and South Korea as Mongolia's most important Third Neighbors. This diplomatic approach aligns with President Lee's emphasis on pragmatic diplomacy, suggesting that the state visit could significantly enhance bilateral cooperation.
This development also holds important implications for the New Northern Policy. Previously, South Korea's Northern Policy had a relatively high focus on Russia and Central Asia. However, the conditions for implementing this policy have deteriorated due to the Russia-Ukraine war, North Korea's closeness with Russia, and international sanctions. In contrast, Mongolia maintains balanced relations with North Korea, China, Russia, the U.S., Japan, and South Korea, pursuing a pragmatic approach that could serve as a new hub for expanding cooperation with northern countries while mitigating geopolitical risks.
Moreover, countries in Central Asia, like Mongolia, share the commonality of possessing abundant resources but lacking a robust industrial base. If economic cooperation between South Korea and Mongolia is successfully established, it could evolve into a model for collaboration that can be extended to other northern countries in Central Asia.
President Lee recently expanded the scope of northern diplomacy by meeting with Ukrainian President Volodymyr Zelensky during the NATO summit and now through this state visit to Mongolia, reigniting the New Northern Policy ahead of the first Central Asia summit scheduled in Seoul in September.
The key now is to ensure follow-up actions. The agreements reached during this summit on CEPA negotiations, economic cooperation, and expanding people-to-people exchanges must be pursued swiftly by both governments to yield tangible results. Particularly with Mongolia facing a presidential election next year, it is essential to establish a foundation for cooperation that can endure beyond changes in government, involving not just the national government but also businesses, local governments, and civil society.
South Korea should not view Mongolia merely as a resource partner. Mongolia is a strategic hub for launching the New Northern Policy and a key partner for achieving both economic security and improving relations with North Korea. It is crucial that this state visit does not become a one-time event but rather serves as a starting point for a new era of northern diplomacy, supported by a well-thought-out follow-up strategy.
* This article has been translated by AI.
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