South Korea Signs Investment Protection Agreement with Turkmenistan

The South Korean government has signed an investment protection agreement with Turkmenistan, aiming to expand its foothold in major infrastructure projects, including chemicals, plants, and smart water management.

In a separate development, South Korea and Kazakhstan have upgraded their bilateral relations to a 'future-oriented comprehensive strategic partnership' for the first time in 17 years, enhancing cooperation in economic security and advanced industries, including oil supply chains, nuclear power, and urban air mobility.

On September 15, President Lee Jae-myung held separate summits at the Blue House with Turkmenistan's President Serdar Berdymukhamedov and Kazakhstan's President Kassym-Jomart Tokayev. The two countries exchanged a total of 26 documents, including agreements and memorandums of understanding (MOUs).

During his meeting with Berdymukhamedov, President Lee stated, "Turkmenistan's abundant resources will lead to high-value industries and job creation, and South Korea will work together to make the land connecting the Caspian Sea and Central Asia a new route for logistics and trade."

He also expressed gratitude for Turkmenistan's support in facilitating the safe evacuation of South Korean citizens and their families through Turkmenistan during the tense situation in Iran last year. Lee remarked, "The warm hand extended in difficult times truly reflects the deep trust and friendship between our two countries."

Berdymukhamedov responded by expressing hope that his first state visit to South Korea would mark a significant turning point in the development of bilateral relations. He also voiced support for the 'E.N.D. Initiative' proposed by President Lee, which stands for Exchange, Normalization, and Denuclearization.

Berdymukhamedov thanked South Korea for supporting Turkmenistan's policy of permanent neutrality and for co-sponsoring the UN General Assembly resolution declaring 2028 as the 'International Year of Law.'

A key economic outcome of the talks was the 'Agreement on the Promotion and Protection of Investments,' finalized for the first time in 16 years. This agreement stipulates fair and equitable treatment for investors from both countries, national treatment, and compensation principles for expropriation. It also guarantees investor-state dispute settlement (ISDS) procedures and the free transfer of investment funds, establishing a stable institutional framework for investments by companies from both nations.

Based on the MOUs in the chemical and infrastructure sectors, the two countries agreed to explore new projects in oil and gas, chemicals, construction, transportation and logistics, and smart cities. They also established an official cooperation framework in the railway sector to facilitate South Korean participation in Turkmenistan's railway modernization projects.

In the water resources sector, they agreed to modernize infrastructure, including the Karakum Canal, a major water source for Turkmenistan, and to share smart water management technologies utilizing artificial intelligence (AI) and water reuse techniques. They also established a cooperation network for intellectual property protection, digital forest restoration, and responses to organized crime, including drug trafficking and money laundering.

Following the exchange of agreements and MOUs, a state luncheon was held with the participation of over 50 dignitaries from both countries.

President Lee then met with President Tokayev to discuss cooperation in economic and trade, energy and critical minerals, AI and science and technology, and human and cultural exchanges. The two leaders adopted a proposal to elevate their strategic partnership, established in 2009, to a 'future-oriented comprehensive strategic partnership.'

A key achievement from the discussions with Kazakhstan was cooperation in oil supply chains. The two countries agreed to jointly respond to global oil supply disruptions and to expand the supply of Kazakh oil, including production from the Korea National Oil Corporation. They will also enhance cooperation across the entire oil value chain, including geological exploration, oil and gas field development, and research in oil and gas chemistry.

In the nuclear sector, they plan to promote joint research and development of nuclear power and small modular reactors (SMRs), exchange information on nuclear industry policies, support nuclear and radiation safety technologies, and train professionals. They also established a foundation for cooperation to enhance the stability of the nuclear fuel supply chain with Kazakhstan, a major uranium producer, and to support the entry of South Korean companies into new nuclear projects locally.

Procedures for sending and receiving Kazakh workers under the employment permit system were also established. Workers who pass objective assessments, such as the Korean language proficiency test, will be supplied to small and medium-sized enterprises in South Korea, ensuring public transparency in the selection process and entry procedures to protect workers' rights.

In the field of future air mobility, they will promote the introduction of unmanned aerial systems and UAM traffic management systems, as well as technology transfer and exchanges. The Korea Airports Corporation has been designated as a partner for system construction and technology cooperation, laying the groundwork for exporting future air traffic management infrastructure developed in South Korea to Central Asia.

The two countries agreed to apply AI to intellectual property administration and to strengthen cooperation in intellectual property transactions, financing, and counterfeit product prevention. They will also promote digital forest management using the Ministry of Agriculture, Food and Rural Affairs and information and communication technology (ICT), cultural cooperation from 2026 to 2030, and the preservation and management of sites related to the independence movement in Kazakhstan through joint academic research.

Chief Presidential Secretary Kang Yu-jeong stated in a written briefing, "The government will continue to work to ensure that the results of this summit lead to tangible outcomes that our citizens can feel."

Meanwhile, after completing state visits to Uzbekistan, Turkmenistan, and Kazakhstan, President Lee is scheduled to hold bilateral talks with the leaders of Tajikistan and Kyrgyzstan on September 16 and preside over the first Korea-Central Asia Summit.