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Talipova Nigora Tulkunovna PhD, Associated professor of the
«International Economics» Department Russian Economic University
G.V.Plekhanov in Tashkent, Uzbekistan
ISTORY OF DEVELOPMENT AND THE CURRENT STATE OF FOREIGN TRADE
BETWEEN THE REPUBLIC OF KOREA AND UZBEKISTAN
Talipova N
Abstract: The Republic of Uzbekistan and the Republic of Korea are
bound by traditional relations of friendship and cooperation based on
universally recognized principles and norms of international law. Both
countries pay great attention to issues of bilateral cooperation in the
political, economic, cultural and other fields. The article is dedicated to the
successful development of bilateral relations in all areas, which is facilitated
by the absence of any political problems between the countries and a solid
legal base.
Keywords: cooperation, economic, Republic of Uzbekistan, Republic of
Korea, foreign trade turnover, export, import.
Introduction
Uzbekistan is one of the few countries with which Korea signed âMutual
Declaration of strategic partnershipâ. Such a status of state-to-state relations
exhibits a high level of multifaceted cooperation between our countries and
laid down their mutual obligations accordingly, based on wide area of
complementary national interests.
The Republic of Korea and the Republic of Uzbekistan are considered to
be reliable strategic partners many years. In the period of Uzbekistanâs
establishment, in the process of realization of national programs on
economic and social development as well as step-by-step integration in
world community, Korea supported Uzbekistan a lot. In the difficult years of
development, South Korea became a priority partner possessing advanced
technologies, capital, technical resources and vast experience in the creation
of infrastructure, construction of roads and railways.
The basement for development of bilateral relations between two
countries was laid on the 30
th
of December, 1991 when the Republic of
Korea recognized the independence of Uzbekistan. Since that moment an
active political dialog is held between the Republic of Korea and the Republic
of Uzbekistan, which evidence are summit meetings held within this
period[1].
The period 1991-2006 can be divided into 3 stages. During the
first
stage (1991-1993) Korea and Uzbekistan considered each other as friendly
countries. In the
second stage(1994-1999), relations of constructive
partnership formed between the Republic of Korea and Uzbekistan. The
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64
third stage(1999-2006) was characterized by establishment of the strategic
partnership [2].Following the principle and spirit of the strategic
partnership stimulated the development of bilateral relations in many
fields.Uzbekistan carrying out modernization and diversification of the
industry with use of rich energy and mineral resources, showed great
interest in the development of rural regions, the creation of small and
medium enterprises, infrastructure development, and it expressed hope for
active participation of Korea in solution of these problems.
In May 2009 Tashkent hosted the Uzbek-South Korean summit, the
results of which was adoption of a joint declaration consisting of 12 points,
identifying new areas of cooperation as well as there were signed 16
protocols of intent and intergovernmental agreements.Seven agreements
and memorandums of understanding out of sixteen signed in Tashkent and
touch the fields of energy sector and development of natural resources,
three â production and financing, six â transport and logistics. Detail plans
were developed inmining operations and construction of industrial
enterprises. In particular, the memorandum of understanding on
reconnaissance of oil reserves in Namangan region, signed between Korean
national oil corporation and Uzbekneftegas is of high importance. Owing to
this agreement, South Korean company will be the first which realizes the
energy project in Central Asia and which owns 100% of shares. The Republic
of Korea will obtain all the necessary energy resources, and Uzbekistan will
obtain modern technologies and support in economic development.
Analyses of scientific literature show a dark area in problems of
development of trade economic relationships between the Republic of Korea
and the Republic of Uzbekistan. Available publications both Uzbek and
foreign researchers are attempting a systematic coverage of international
activities in Uzbekistan under new conditions and its entry into the world
community and consider mainly the various aspects of foreign economic
activity of Uzbekistan. .
Certain contribution to the development of some issues of trade -
economic relations development between the Republic of Korea and the
Republic of Uzbekistan was made by a Korean scholar Kim Kyong Ho. Also
thesis work of the researcher Oh Se Quang was considered to be the role of
information - communication technologies in the economy of the Republic
of Korea and Uzbekistan. The study S.A. Zakirova "Diversification and
increase of efficiency of economic cooperation between Uzbekistan and the
Republic of Korea" analyzed the practical experience and related topical
issues of bilateral Uzbek-South Korean economic cooperation.
Great value for the study of this issue are of the works of South Korean
specialists among which they mark the works of scholars such as Ko Jae
Nam, Lee Dong-Hyun, Kang Won Sik, Kim Myong Ho, Lee Hyun-Up. .
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65
Also in scientific studies there are highlighted some aspects of
cooperation of the Republic of Korea and the Republic of Uzbekistan, which
mainly affect economic relations. S. Zakirova, B. Li, S. Csepel, Marzalieva S.,
W. Feng, J. Eltazarov. Some of aspects of economic cooperation are disclosed
in the studies of A. Abduganiev, A. Isazhonov, F.Maksudov, Nazarova,
B.Hodzhaev, R.Shadiev, N.Tuhlieva and other economists of Uzbekistan. In
the K. S. Asirbabaeva "Republic of Uzbekistan and the Republic of Korea: the
processes of modernization and cooperation prospects", highlight the RK
modernization issues and its impact on the social economic processes.
Analysis of thematic literature.
Analyses of scientific literature show a dark area in problems of
development of trade economic relationships between the Republic of Korea
and the Republic of Uzbekistan. Available publications both Uzbek and
foreign researchers are attempting a systematic coverage of international
activities in Uzbekistan under new conditions and its entry into the world
community and consider mainly the various aspects of foreign economic
activity of Uzbekistan.[3]
Certain contribution to the development of some issues of trade -
economic relations development between the Republic of Korea and the
Republic of Uzbekistan was made by a Korean scholar Kim Kyong Ho.[4]
Also thesis work of the researcher Oh Se Quang was considered to be the
role of information - communication technologies in the economy of the
Republic of Korea and Uzbekistan.[5] The study S.A. Zakirova
"Diversification and increase of efficiency of economic cooperation between
Uzbekistan and the Republic of Korea" analyzed the practical experience and
related topical issues of bilateral Uzbek-South Korean economic
cooperation.
Great value for the study of this issue are of the works of South Korean
specialists among which they mark the works of scholars such as Ko Jae
Nam, Lee Dong-Hyun, Kang Won Sik, Kim Myong Ho, Lee Hyun-Up.
[6]
Also in scientific studies there are highlighted some aspects of
cooperation of the Republic of Korea and the Republic of Uzbekistan, which
mainly affect economic relations. S. Zakirova, B. Li, S. Csepel, Marzalieva S.,
W. Feng, J. Eltazarov. [7]. Some of aspects of economic cooperation are
disclosed in the studies of A. Abduganiev, A. Isazhonov, F.Maksudov,
Nazarova, B.Hodzhaev, R.Shadiev, N.Tuhlieva and other economists of
Uzbekistan. In the K. S. Asirbabaeva "Republic of Uzbekistan and the
Republic of Korea: the processes of modernization and cooperation
prospects", highlight the RK modernization issues and its impact on the
social economic processes.
Lee MyonBak and Islam Karimov signified their satisfaction in achieved
level of bilateral economic and political cooperation; they agreed to expend
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66
efforts in making the relations between Seoul and Tashkent as strategic
partnership.
The main reason of active development of relations between the
Republic of Korea and regionâs leading countries as Kazakhstan and
Uzbekistan is the favorable economic model of cooperation. Further if it will
be possible to unite experience of economic development, technologies and
capital of the Republic of Korea with rich natural and human resources of
the region, the cooperation potential can be realized with maximum
effectiveness [8].
A demonstrative example of the productive cooperation between the
parties can be signing of a bilateral investment agreement in February 2010
on the construction of a chemical plant and the joint development of gas
fields Surgil in western Uzbekistan. Within the framework of the projected
amounting to 4 billion US Dollars, there was built a large gas-chemical
complex. The arrangement was reached during South Korean-Uzbek summit
held in Seoul, where the two Presidents Lee MyungBak and Islam Karimov
expressed satisfaction with the achieved level of bilateral economic and
political cooperation, they agreed to make further efforts to move the
relations between Seoul and Tashkent on the level of strategic [9].
At the present time, 439 enterprises with the participation of Korean
investments operate in the country; 75 of them hold one hundred percent of
Korean capital; 72 representations of South Korean companies are
accredited. They operate in such areas as trade, textile, light industry, mining
and metallurgy, chemical and food industries, machine building,
metalworking, tourism, health and transport services[10]. Nearly 80
representations of South Korean companies were established in Uzbekistan.
The scope of cooperation in the field of education is significantly
expanding. Realization of the project of opening Tashkent the training
center "Uzbekistan - South Korea" in Tashkent should be included to the
number of the important achievements in the field of education.
At the present time in modern society, the growth of the objects of
cooperation between the two countries is not the only thing to be interested
in but they also pay attention to cooperationâs improvement and deepening.
Cooperation between the Republic of Korea and Uzbekistan is of large
potential in banking and financial fields. Koreaâs bank business has been
represented in Uzbekistan since the middle of 1990s where there had been
opened joint Uzbek-Korean bank UzDaewoo Bank. It was founded in 1997
in a form of joint-stock company of closed type for servicing the branches of
Daewoo Co. and other Korean companies working in Uzbekistan. Further
this organization was reorganized to representation of Korean Development
Bank (KDB).
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On February 2006 KDB entered the shareholders of Uzbek-Korean
UzDaewoo Bank having bought the shares of Korean Daewoo Securities
amounting to 61%. In connection with entering of the new shareholder, the
name of the bank was renamed to UzKDB Bank.
The special role in development of mutually beneficial relations
between two countries played the visit of the President of the Republic of
Korea Lee MyonBak in August 2011 within the framework of which there
were signed important documents: the loan agreement between Uzbekistan
and Korean Eximbank which allowed to obtain concessional loan amounting
to 10 million US Dollars from the Development fund of economic
cooperation for the project on âEquipping of the Center of concessional loan
in the name of V. Vahidov with modern medical equipmentâ, etc.
A number of strategic projects in various sectors of the economy with
active participation of Korean business are being realized in Uzbekistan. One
of them is the recently completed construction ofUstyurt Gas Chemical
Complex at Surgil deposit amounting about to $ 4 billion, carried out jointly
with a consortium of leading Korean companies - Korea Gas Corporation
(KOGAS) and "Lotte Chemical". Large projects with South-Korean investors
are realized in FIEZ Navoi including joint operation of this cityâs airport
together with Korean Air. At the present time they are working on the
second stage of construction of the Navoi airport with increasing freight
traffic several times.
Talking about trade and economic cooperation, it is necessary to note
that works in such areas as politics, economy, culture, education are carried
out. Scientists of Korea assign an important role to solution of
environmental problems. Thus, in the arid climate of Central Asia where
water resources are a key factor in maintaining a sustainable ecological
balance of natural ecosystems and social economic development, it was
decided to develop technologies for reducing the salinity of drainage water.
In addition, South Korean Economic Development Cooperation Fund (EDCF)
has provided to Uzbek government with a loan of 80 million US Dollars to
improve drinking water supply in three regions of the country.
The main reason of active relations development between these two
countries is favorable economic model of interaction. If it is possible to
consolidate further the experience of economic development, technologies
and capital of the Republic of Korea with the rich natural and human
resources of Uzbekistan, the cooperation potential of the two countries can
be realized maximum efficiently [11].
Foreign trade tendency betweenthe Republic of Korea and Uzbekistan
Analysis of details and main tendency of import and export
development in the Republic of Uzbekistan showed the following.
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There has been favorable treatment in trade between the Republic of Korea
and Uzbekistan since 1992. The trade turnover between the Republic of
Korea and Uzbekistan began to grow steadily since the establishment in
1992 of diplomatic relations. Since 2008, the trade turnover exceeds 1
billion US Dollars. In 2019, it amounted to more than 2 billion US Dollars
(Figure 1.1.).
Figure 1.1. Foreign trade turnover of the Republic of Korea and
Uzbekistan for 2000-2019 (million US Dollars )
Authorâs calculations on the data of State committee of the Republic of
Uzbekistan according to the statistics of 2000-2019. The list of major goods
being exported from the Republic of Korea to Uzbekistan, includes: parts for
motor-cars, engines, passenger cars, plastic materials, fabric, computers,
furniture, molded steel, different plastic and metal profile products,
engineering equipment, scrap tires, etc. (Figure 1.2.)
Motor cars are the following item in the list of exporting goods from the
Republic of Korea to Uzbekistan. GM-Uz produced 224 thousand motor cars
and exported 103 thousand ones, the rest volume is directed to the repletion
of wants of domestic market. In near future it is planned to increase export
by 70%.
Trade
Export
Import
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Figure 1.2.Import of Uzbekistan from South Korea (in %)
Authorâs calculations on the data of State committee of the Republic of
Uzbekistan according to the statistics of 2000-2019.
Special significance of Korea as the trade partner of Uzbekistan is
stipulated by the fact that the Republic obtains primarily high-technology
products from this country. In such a way, there are created conditions for
process acceleration of modernization of national economy, output of the
new competitive product.
The base of Korean export to Uzbekistan is manufacturing industry
products including investment goods, components for motor-car industry,
home electronics, telecommunications equipment, and sewing products.
Analysis of dynamic of trade structure of Korean export to Uzbekistan
proves that for the last years there have dominated the products of motor-
car and equipment sectors which ratio in total volume of Korean export to
Uzbekistan grew for approximately from 62% in 2000 to 75% in 2019.
From the view point of stable balanced economics development, the
unfavorable factor is high import ratio as well which contradicts to the
principle of independence. The higher is the value of this indicator, the more
dependent is the country on foreign trade. But in whole, such high rate of
export operation is possible for Uzbekistanâs economics; even more, they are
necessary for successful integration of national economy to world economy.
In this situation, it is important to consider that the main indicator, thanks
to which the import from the Republic of Korea has increased, is machines
and equipment â up to 80%, which allows Uzbekistan to increase its
industry potential.
South Korea is a reliable strategic partner of Uzbekistan. Both countries
have a great economic potential and opportunities, their relations are in the
most favorable condition. There were signed agreements on cooperation in
such fields as trade, investment, oil and gas, mechanical engineering, mining,
Scientific research results in pandemic conditions (COVID-19)
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textile, chemical industry, logistics, construction, information and
communication technologies, education, public health.
Uzbekistan exports to South Korea food products, chemical products,
machinery and equipment, mineral fertilizers, provides for transport,
communication and tourism services. From South Korea to Uzbekistan there
are imported vehicles, mechanical and electronic equipment, plastic
materials and their products. In 2019, the trade turnover amounted to more
than 2.1 billion US dollars.
Figure 1.3 . Exports of Uzbekistan to South Korea (in %)
Authorâs calculations on the data of State committee of the Republic of
Uzbekistan according to the statistics of 2000-2019.
The structure of Uzbek products export to Korea is similar to the typical
structure of products export of developing countries to the developed one.
Its base is services import (logistics, communication, tourism â 63%),
agricultural products including ginned cotton, food products, etc. For the
last years, the large value is obtained by the import of some kinds of
chemical industry as well as raw materials for pharmaceutical products[12].
Uzbekistan cuts the export of ginned cotton systematically by means of
increasing the volumes of domestic processing. In spite of reducing the
export of the cotton, the main purchaser of the Uzbek cotton is Bangladesh
(29%), China (26%), South Korea (7%) and Iran (5) as before. It was
mentioned several times in bilateral and multilateral visits of heads and
government delegations of our countries that the Republic of Korea was
considered to be one of the largest economic partners of Uzbekistan [13].
There have been concluded a lot of trade-economic agreements for the years
of independence, which refer to the development of cooperation in such
areas as finance, trade and investment, industry, oil & gas, energy power. For
the purpose of regular discussion of current issues referring to trade
economic relations, there were created Uzbek-Korean and Korean-Uzbek
committees on economic cooperation and trade.
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71
Humanitarian cooperation is also developing gradually. The Korean
education center is functioning in Tashkent. The centers of Korean language
and culture are opened in the Uzbek State World Languages University and
the Samarqand State Foreign languages Institute, and the center of
information technologies is opened in the Tashkent university of
information technologies. The realization of the project of foundation of the
center of professional training âUzbekistan-Koreaâ in Tashkent became
another achievement in the education field. Every year 360 boys and girls
study here on such programs as computers, graphic arts,electrical
technologies,repair of agricultural equipment and carsâ service
maintenance.
It is very important that reformations pursued in Uzbekistan are based
on real possibilities, step-by-step strategy and potential of our countries.
This is the key term of effectiveness. Achieved agreements and signed
documents meet fully the interests of the nations of our countries and they
will be contribution to successful realization of the present potential of the
cooperation. Uzbekistan and South Korea continue to demonstrate their
readiness for strategic partnership activation, political dialogue widening
and deepening of relations in all the fields on the basis of mutual benefit.
Uzbekistan in cooperation with South Korea mastered complex
production of high technology where finished products are distinguished by
high value added. Korean scientists have made their large contribution to
development of agriculture, medicine, pharmaceutics, and environment and
information technologies of Uzbekistan for the period of joint cooperation.
Having been in the past the country supplier of agricultural raw
materials, it became the country preparing finished food products and light
industry products which are in demand in world market. To develop the
field in practice, they use achievements of national and foreign scientists
which helps to integrate in world science.
Thus, in the arid climate of Central Asia where water resources are a key
factor in maintaining a sustainable ecological balance of natural ecosystems
and social economic development, it was decided to develop technologies
for reducing the salinity of drainage water. Realization of the project from
the side of Korean specialists provides for the delivery of equipment and
materials for project realization; the visit of Korean experts of technical
training and consultations on equipment operation; project supervision and
joint laboratory research on technologies of lowering the salinity of drainage
water for reuse. South Korean Economic Development Cooperation Fund
(EDCF) has provided to Uzbek government with a loan of 80 million US
Dollars to improve drinking water supply in three regions of the country.
It is still very important to create new joint productions in the regions
purely developed. The most important impulse for successful operation of
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72
enterprise with foreign investments is the condition of market
infrastructure as investors attach much importance to the regionâs
infrastructure, and they usually prefer those regions where it is developed
properly. All abovementioned proves the further development and
strengthening of the mutually beneficial bilateral cooperation between our
countries.
Conclusions and Suggestions.
The constructive spirit in mutual relations of Korea and Uzbekistan is
supported by intensive dialogue on different levels, a constant exchange of
official visits, delegations, close contacts of states, ministries, departments,
business circles, scientific, artistic, creative and sports community and youth
groups.
Trust partnership is established in many areas of political, economic,
social and spiritual development of the two countries with a long-term
perspective. It goes without saying that the coincidence of strategic guidance
stems is originated from the equal and mutually beneficial cooperation, and
by itself excludes the dominance of one partner over the other.
The practical significance of the study lies in the fact that offered
approaches, theoretical and practical conclusions allows a deeper
understanding of the nature of international relations of Uzbekistan and the
Republic of Korea as a whole, their political content, to identify their general
patterns and features. Materials research can serve as a basis for further
study of the theoretical and practical problems of international relations
between the Republic of Korea and Uzbekistan
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http://blog.naver.com/seoheeing/220457078760
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[
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TalipovaN. T. PhD,Associated professor of the «International Economics»
Department Russian Economic University G.V.Plekhanov in Tashkent,
Uzbekistan
Fayzibayeva N.T.PhD, Associated professor of the « International Economy»
Department University of World Economy and Diplomacy, Uzbekistan
STRATEGIC DECISION MAKING
TalipovaN, Fayzibayeva N
Abstract: In the article, the authors analyze matrix models when
strategic decisions making in the economy. The main factors, opportunities
and problems in applying matrix models are considered and analyzed.
Keywords: matrix models, management, management strategy, factors,
methods of influence
Introduction
In industrial sphere problems of development of the proved strategy in
relation to paid products and services will be actualized. For the decision of
this class of problems - so-called models widely approved in foreign practice
portfolio analysis which it is especially successful, apply in conditions mass
and a batch production.
Generally speaking, this class to become especially perspective, for the
enterprises which leave in Internet with the offer of production and services
- cardinally expands its market space and makes tempting a problem of a
conclusion to the market of such new products and services which would
have the mass consumer.
This circumstance defines interest to possible appendices of models of
classical management and the marketing, successfully used by the western
industrial firms, for development of the proved strategic decisions both
concerning information bodies as a whole, and concerning separate
information products or categories of consumers of information services [1-
3].
Now besides traditionally represented services of information search
in a databank multiplying, educational, it is possible to observe and services
which were unusual for the enterprises, such as intermediary, consulting,
advertising, telecommunication earlier, rent, polygraphic, expert, search,
