"South Korea is not just a capital supplier but a long-term industrial and technological partner with engineering, quality control, and environmental technology. We must enhance the entire value chain of the mining and tourism sectors based on our strategic partnership," said Khurelsukh Gombosuren, a leading candidate for the next president of Mongolia, in an interview on July 22 in Ulaanbaatar.
Gombosuren emphasized the need for an 'industrial structure transformation' that moves away from a reliance on simple raw material extraction and visitor numbers, advocating for technology transfer, refining, and high-value tourism.
He noted that Mongolia possesses significant geological potential for key minerals such as copper, uranium, rare earth elements, tungsten, lithium, and high-purity quartz. However, he stressed that "value does not come from merely exporting raw materials," highlighting the necessity of precise exploration, refining technology, and establishing long-term demand sources as essential tasks for enhancing the value chain.
As investment criteria for this value chain enhancement, he proposed 'technology transfer' and 'sustainability (ESG).' Gombosuren stated, "The success of investments depends on what capabilities remain in Mongolia. Companies that reflect environmental and social standards from day one and foster local employment and supply chains are needed."
These investment criteria align with the localization strategy of the South Korean company Bolor Geo, which has been exploring strategic minerals in the Bulganai district. Since the beginning of its exploration, Bolor Geo has implemented tailored ESG programs, including water usage contracts, local hiring, and donations for kindergarten establishment, building deep trust with local authorities and residents.
Gombosuren remarked, "Social acceptance cannot be bought with donations after decisions are made; it is earned through transparency and consistent implementation. Responsible South Korean companies that leave tangible value in local communities are the key partners in enhancing Mongolia's mining sector."
In addition to mining enhancement, he identified the tourism industry as a crucial pillar for diversifying an economy vulnerable to raw material price cycles. In 2019, tourism accounted for 7.2% of Mongolia's GDP and 7.6% of employment, with income from large mines being more widely distributed among guides, herding families, and local small businesses.
Gombosuren pointed out that for Mongolia's tourism sector to grow, it must move away from its current focus on quantitative growth. He argued that low-cost package tours lead to environmental degradation without providing real benefits to local residents. "Rapid growth in a single year should not be equated with long-term competitiveness. We need to shift our policies to 'high-value, low-impact tourism' that measures not just visitor numbers but also length of stay, per capita spending, repeat visits, and income left in the community," he said.
He identified South Korea as the optimal target for this qualitative transformation, noting that from January to May this year, 27,837 South Korean tourists visited Mongolia, making up about 9.5% of all foreign visitors.
Gombosuren stated, "The South Korean market is suitable for experiences that allow people to completely escape urban life. We can develop four tailored concepts, including 'step therapy' for psychological stability in vast nature, conservation tourism, premium detox, and scientific and research tourism."
* This article has been translated by AI.
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