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84
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ÌÅÆÄÓÍÀÐÎÄÍÛÅ ÎÒÍÎØÅÍÈß È ÝÊÎÍÎÌÈÊÀ //
INTERNATIONAL RELATIONS AND ECONOMICS
LEE JI-EON
Professor, Hankuk University of Foreign Studies, R. Korea
Uzbekistan under the New Leadership
and the Cooperation of
Republic of Korea
Abstract.
Recently, Republic of Korea and Republic of Uzbekistan have been buoyed up by
expectations for new leadership. Under the new governments and new policies, the relationship
between the two countries has entered a new phase. The new Korean government led by Moon
Jae-in sees the new domestic and foreign policy initiatives led by the Mirziyoyev government as
highly encouraging and shows great interest in establishing mutually beneficial partnership
with the new government in Uzbekistan.
Keywords and expressions:
President Shavkat Mirziyoyev, Uzbekistan, Republic of
Korea, 2017 Summit, Korea–Central Asia Cooperation Forum, new leadership, coopera-
tion between Republic of Korea and Republic of Uzbekistan.
Аннотация
.
Куни
кеча
Корея
Республикаси
ва
Ўзбекистон
Республикаси
янги
дав
-
лат
бошқаруви
қўл
остига
ўтди
.
Бу
икки
давлат
ўртасидаги
ўзаро
алоқалар
ҳам
янги
бошқарув
ва
янги
сиёсат
асосида
янгича
тус
олди
.
Мун
Жай
-
ин
бошчилигидаги
Корея
-
нинг
янги
давлат
бошқаруви
Мирзиёев
бошчилигидаги
янги
ички
ва
ташқи
сиёсатни
қўллаб
-
қувватлаб
,
Ўзбекистон
билан
ўзаро
фойдали
ҳамкорлик
алоқаларини
ўрнатишга
ўз
қизиқишини
кўрсатмоқда
.
Таянч
сўз
ва
иборалар
:
Ўзбекистон
Президенти
Шавкат
Мирзиёев
,
Ўзбекистон
,
Ко
-
рея
Республикаси
,
саммит
2017,
Корея
–
Марказий
Осиё
ҳамкорлиги
форуми
,
янги
бош
-
қарув
,
Корея
Республикаси
ва
Ўзбекистон
Республикаси
ўртасидаги
ўзаро
ҳамкорлик
.
Аннотация
.
Недавно
Республика
Корея
и
Республика
Узбекистан
перешли
под
уп
-
равление
нового
руководства
.
Отношение
между
двумя
странами
вошло
на
новую
фазу
под
новым
управлением
и
политикой
.
Новое
корейское
правительство
Мун
Жай
-
ина
всячески
поддерживает
новые
внешние
и
иностранные
политические
инициативы
пра
-
вительства
Мирзиёева
и
оказывает
большой
интерес
на
создание
взаимного
благотвор
-
ного
сотрудничества
с
новым
правительством
Узбекистана
.
Опорные
слова
и
выражения
:
Президент
Узбекистана
Шавкат
Мирзиёев
,
Узбекис
-
тан
,
Республика
Корея
,
саммит
—
2017,
Форум
сотрудничества
Корея
–
Центральная
Азия
,
новое
руководство
,
сотрудничество
между
Республикой
Кореей
и
Республикой
Узбекистан
.
I. New Government led by Shavkat Mirziyoyev since 2016
After the death of former President Islam Karimov, Shavkat Mirziyoyev was
elected as the second President of the Republic of Uzbekistan. President Mirziyo-
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yev served as the Prime Minister of the Islom Karimov governmnet for a long
time (2003
–
2016) and officially announced that he would maintain former Presi-
dent Islom Karimov's domestic and foreign policy. However, the Mirziyoyev
government is also showing some new moves in domestic and foreign policies.
1) The official slogan "From a strong state to a strong civil society"
Strong state means strong government and it is expected that there will be a
visible effort to strengthen civil society capacity in Uzbekistan society in terms of
fulfilling the promise. In his first UN speech after his inauguration in December
2016, President Mirziyoyev promised to make Uzbekistan a "democratic country"
and a "just society" where 'human interest' prevails.
2) Business-friendly Policy Expected
The Mirziyoyev government has resolved many of the most important obstacles to
investment in Uzbekistan during its one-year term. It is confirmed that the investment
environment in Uzbekistan is improving under the leadership of the government, such
as the introduction of the free exchange system in September 2017, the reduction of the
business tax, and the establishment of free economic zones.
3) "Good Neighbor Policy" to bring the stability and prosperity to Central Asia
The best example of Mirziyoyev government's foreign policy is likely to be
identified with "Good Neighbor Policy," which clears ties of tensions with neigh-
boring Central Asian countries and seeks to move to the new era symbolizing as
an Uzbek-led coordination and cooperation policy in Central Asia.
4) Prosperity of Uzbekistan means the prosperity of Central Asia
The new government has set the prosperity of Uzbekistan as a key task for the
country. President Mirziyoyev said "As the people live better, the nation will
become stronger".
He strongly expressed his commitment to economic growth. Moreover, it
emphasizes the leading role of the Uzbek government in making Central Asia as
economically prosperous. It was evaluated as a remark aimed at raising Uzbekis-
tan as a Central Asian leading state with the capability of economic development
based on 31 million people, the largest population in Central Asia and comparati-
vely strong manufacturing.
Of course, these changes have attracted the attention of many countries in the
world, and Korea has been more interested in because of its long friendly relationship
with Uzbekistan. The new Korean government led by Moon Jae-in sees these new
domestic and foreign policy initiatives of Uzbekistan as highly encouraging and
shows great interest in establishing mutually beneficial partnership with the new
government in Uzbekistan. The Korean government expects that the official visit of
President Mirziyoyev to Korea has brought more economic and diplomatic attention
to Uzbekistan inside Korea and will further strengthen bilateral relations.
What kind of partnership should Korea and Uzbekistan now have to build up
in the future? Before answering this question, Korea and Uzbekistan first look at
what significance they have to each other.
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II. What Korea and Uzbekistan means to each other?
1) Central Asia from the Strategic Perspective of Korean Government
Today, Central Asia, where Uzbekistan is located, has turned out a region for
Republic of Korea(hereafter, Korea) to seek its national interests in various sec-
tors and establish multilateral security belts for peace and prospect of the Eurasian
Continent. More specifically, Central Asia bears significant implications for Ko-
rea in following aspects: 1) ensuring energy resources like oil, gas, uranium and
other natural resources for its sustainable economic growth; 2) enlarging eco-
nomic cooperation by investing Korean capital to various development projects;
3) protecting the right of 350 thousands of Korean Diaspora in the region and
reinforcing ties with their home country; 4) broadening diplomacy radius of Korea
by establishing cooperative relations with Central Asian states; and 5) sharing
experiences of multilateral regional cooperation with Central Asian states.
Particularly for Korea who relies on its energy supply on imports, energy co-
operation would bear its significance in constructing general foreign relations with
Central Asian states. However, it should be noted that Korea’s advance to in
Central Asia is not limited to energy resources. It has also an obvious objective to
search for a room for its political influence in the region, seeking a picture to
organically connect from Korea (North Eastern Asia) up to Central Asia. In this
regard, “Korea-Central Asia Cooperation Forum” is the very product of the will of
the government of Korea to realize enhanced political leverage and broaden its
diplomatic radius in Central Asia. Doubtlessly, Uzbekistan has been playing an
important role in this Forum since its membership.
To date, the forum has been held annually since 2007 and the 10th forum in 2016
was successfully hosted in Korea and has brought the opening of the Secretariat of
Korea-Central Asia Cooperation Forum (hereafter, Forum) in Korea. At its 10th anni-
versary, every member state unanimously approved the opening of Secretariat of the
Korea
–
Central Asia Cooperation Forum (hereafter, Secretariat).
It can be evaluated as a 10-year result of communication and cooperation between
Korea and Central Asian countries. The Secretariat is a permanent executive div of the
Korea-China Cooperation Forum, a high-level multilateral consultative div held every
year since 2007. Since its inauguration on July 10 2017, the cooperation among the
member states, including politics, economy and culture, and communication channels.
The Secretariat has selected the following six promising cooperation fields as mid-
and long-term priority cooperation fields to identify and implement cooperation pro-
jects by sector. First, As part of efforts to improve linkages between Korea and Eurasia
countries, and to promote economic development through the establishment of inte-
grated logistics and transportation in Central Asia, we will carry out projects to improve
transportation infrastructure and improve non-physical barriers in Central Asia. Second,
it will carry out projects for energy efficiency and renewable energy cooperation, taking
into consideration the demand and interest in renewable energy technology and the
technology and experience of Korea in this area. Third, Considering the importance of
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industrial modernization and diversification, which is a core requirement for economic
development in Central Asian countries, and considering the possibility of transferring
Korea's experience and know-how in this field, the project will promote the priva-
tization of special economic zones. Forth, the Secretariat will promote forest coope-
ration and eco-friendly projects in consideration of the need to prevent desertification in
the Central Asia region, the need for economic and efficient management of water
resources, the technological strength of Korea in this field, and the possibility of mul-
tilateral cooperation among Central Asian countries. Fifth, considering the increasing
demand for high-quality health and medical services in Central Asian countries, the
need for strengthening public health and hygiene management, and the interest in
Korea's advanced medical facilities and technology transfer, the Secretariat helps out
relevant entities to do business. Lastly, considering the cultural identity of Korea and
Central Asia as cultures of the Altai region, and the necessity of expanding cultural
exchanges due to the proliferation of various Korean contents in Central Asia and the
development of future-oriented cooperation, it is necessary for the Secretariat to estab-
lish the next generation network and expand sports and cultural exchanges.
Back again to the Forum, it aimed at improving bilateral ties with each of them
and collective multilateral ties over a wide field of endeavor stretching from the
government, to the corporate sector, to education, and cultural-human exchanges.
These meetings and South Korea’s visible interest in investing in Central Asia
have also been welcomed by Central Asian states, because such activities facilita-
te their common drive to diversify the sources of foreign interest and investment
mainly of Russia and China.
Indeed, Central Asian states do approve the presence and influence of such regional
powers but at the same time have searched for various ways to reduce their political,
economic and security reliance by inviting other players like Korea. Thus, it is likely to
say that the objectives of both parts are properly interlocked, active cooperation bet-
ween Korea and Central Asia could fill the room for each part’s lacking points.
2) Korea and Uzbekistan
Korea
–
Uzbekistan is a medium-sized country surrounded by large countries of
Eurasia continent such as Russia, China and India. The international environment
of this Eurasian continent is a very unbalanced external condition compared to the
European Union and ASEAN countries, which have similar size in terms of natio-
nal power and economic power. Therefore, mutual economic cooperation and
solidarity through the multilateral cooperation between Korea and Uzbekistan,
which are middle-sized countries among the great powers, will strengthen the eco-
nomic, diplomatic and security position of middle-scale countries in establishing
relations with the great powers.
Both countries are strategically important areas where the interests of the great
powers are at the sharpest confrontation in the Eurasian continent. Therefore,
Korea and Uzbekistan have weak geopolitical conditions that can be caught up in
the antagonism and confrontation of the great powers irrespective of their will.
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The cooperation between Korea and Uzbekistan will contribute to the peace and
friendship of the Eurasian continent which both countries have been longing for.
Economically, furthermore, Korea and Uzbekistan have mutually complemen-
tary economic structures, and mutual economic synergy can be achieved if they
cooperate with each other. The Korean government does not regard Uzbekistan a
mere resource exporting country. Rather, Korea understand what needs to Uzbe-
kistan, for example, it has a national task of cultivating the manufacturing industry
including the petrochemical industry. Thus, cooperation with Korea among the
economic growth models based on manufacturing at intermediate countries has
been mutually beneficial country for Uzbekistan. Korea and Uzbekistan are
expected to contribute to mutual prosperity by sharing development experiences
and know - how through systematic and mid - to long - term mutual economic
cooperation. Korea can also secure stable supply of resources from Uzbekistan
and secure logistics hubs in Central Asia.
Korea has global competitiveness in the petrochemical industry and manufac-
turing industry that Uzbekistan needs. This is clearly announced when President
Mirziyoyev has visited to Korea on November, 2017. The petrochemical industry
is now a key area in raising the added value of Uzbekistan resources and fostering
manufacturing. Korea can be the best partner in the plant and manufacturing tech-
nology of the petrochemical industry.
In addition, Korea-Uzbekistan cooperation, which has the world's best tech-
nology in IT, electronics, automobile, aviation, biotechnology, fashion and culture
industry, will contribute to economic growth of Uzbekistan. Korea has the know-
how and abundant experience to construct a modern new city in the fastest time in
the world. Therefore, cooperation with Korea will bring synergies to the residen-
tial environment improvement and urban modernization in Uzbekistan.
The fact that Korea is currently the first Asian country to sign an FTA with the
United States, the EU and China recently is also attractive to Uzbekistan. Now
Korea is also discussing the signing of an FTA with Japan.
Therefore, the Korea-Uzbekistan economic cooperation would provide Uzbe-
kistan with an opportunity to effectively access the Western markets such as the
US and EU.
III. The Summit of Korea-Uzbekistan on November 2017
President Mirziyoyev of Uzbekistan and President Moon Jae-in signed a joint
statement on the comprehensive strenghtening of the strategic partnership bet-
ween the Republic of Korea and the Uzbekistan on 23rd of November 2017.
President Moon Jae-in and President Mirziyoyev agreed to further strengthen
their comprehensive partnership, including political, economic and human
exchanges, to further strengthen their bilateral strategic partnership, which marks
the 25th anniversary of diplomatic relations. The two leaders shared the view that
this summit of the two countries, which have many common points as a long-time
brotherhood, will be a moment to write a new history of relations between the two
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countries and decided to expand the scope of cooperation by constructing social
infrastructure. The two leaders also approved further promoting cross-border vi-
sits between the two countries 'economic councils and high-level officials, inclu-
ding the Trade-Economic Cooperation Council and the Deputy Prime Ministers'
Meeting, in an effort to find future-oriented cooperation projects.
"Uzbekistan is the most important partner supporting of the new North Korean
policy that our government is promoting", and "it is important for Korea to
cooperate with Uzbekistan in terms of diversification of our diplomacy and trade
counterpart" said Moon Jae-in.
President Moon also expressed his gratitude for Uzbekistan's strong support
for the resolution calling for the ceasefire during the Pyeong Chang Winter
Olympics, and President Mirziyoyev said, “We support for President Moon's
peace on the Korean Peninsula and the closing of the North Korean embassy in
Uzbekistan last year is also meant to be in harmony with Korea”.
At the enlarged summit, the leaders of the two countries will cooperate as
mutually beneficial future economic development partners, expanding trade and
investment between the two countries, building infrastructure for transportation,
cities and energy, and promoting substantial cooperation in areas such as health
and medical care.
As President Mirziyoyev emphasized in the business forum in Korea, the
regular and ongoing meeting between the two countries should be preceded by the
realization of the various agreements between the two countries, rather than sim-
ply ending in a sentence.
In the past, the many MOUs were concluded with Uzbekistan in various fields,
and some of them have achieved great results, but it is also true that many of them
have simply remained at the state of MOUs. From the perspective of Korea, the
investment environment in Uzbekistan remains difficult. As the two countries
have made economic cooperation the top priority, measures should be taken in
order to revitalize investment by improving various regulations and related laws
that have been obstacles for further cooperation.
IV. Conclusion and Suggestions
Korea and Uzbekistan have developed relations for mutual prosperity in the
international diplomatic relations since the establishment of formal diplomatic
relations in 1992. In the 1990s, when Uzbekistan was in a difficult political and
economic situation, Korea was the first to promote exchanges by investing in
before Japan and China. A number of Korean entrepreneurs, including Daewoo
Motor's Uzbek plant, have entered Uzbekistan and many industrial trainees from
Uzbekistan have come to Korea to gain jobs and learn industrial skills.
In this way, Korea and Uzbekistan have developed into an important rela-
tionship that has built up mutual trust as they have cooperated with each other
throughout the difficult times. Recently, both Korea and Uzbekistan have been
buoyed up by expectations for new leaders. Under the new governments and new
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policies, the relationship between the two countries has entered a new phase. The-
refore, this paper would like to introduce some ideas and suggestions to the Ko-
rean government as follows.
1) Focusing on the new economic development sectors in Uzbekistan
President Mirziyoyev has been working to modernize and diversify the economy
for sustainable national economic development, increase export potential, improve
SMEs and business environment, reform agriculture sector, improve transportation
and logistics infrastructure. Cooperation in the field of water resources management
and healthcare services is also of interest. Thus, the Korean government's attention is
paid to on the cooperation of the Korean government in these fields.
2) Emphasizing mutual reciprocal trading partner
It is necessary to take advantage of the fact that Korea can be a good alter-
native to Uzbekistan, which is currently focusing on diversifying its trade network
that is heavily concentrated in China and Russia. In particular, it is necessary to
expand / deepen Korea
–
Uzbekistan trade with mutually complementary economic
/ industrial structure in various dimensions.
3) Practical risk management by the government in order to stimulate invest-
ment and exchange in the private sector
Various investment environment improvement policies are under way under
the new government, but there are still many risks for private companies to acti-
vely enter Uzbekistan. The government should play a role in creating an environ-
ment in which companies can invest. It is necessary to think about possible mea-
sures such as establishment of investment funding or infrastructure, and establish-
ment of a countermeasure for one-stop window for complains.
4) Practical and horizontal approach
Korea's policy toward Uzbekistan needs to be reorganized from a new pers-
pective. It is expected that the Mirziyoyev government would try to deal with
Korea from a more practical point of view. Therefore, Korea will be able to
maintain the initiative being enjoying in Central Asia by actively developing and
presenting future cooperation models that can share mutual horizontal interests
while succeeding the achievements of bilateral relations.
