Full Breakdown
Kazakhstan deepens multi-sector partnership with South Korea
By Drooid · · How we work
Core agreements and projects
- During President Kassym-Jomart Tokayev’s September 15-16, 2026 visit to Seoul, Kazakhstan and South Korea signed 13 documents covering automotive production, gas processing, green hydrogen, rare-earth processing, nuclear energy, AI cooperation and the Alatau Smart-City project.
- Hyundai Motor Group and Astana Motors will produce a new Hyundai Tucson model in Kazakhstan, expanding local vehicle assembly.
- Hyundai Engineering and QazaqGaz will build a gas-processing plant at Karachaganak with a design capacity of 5 billion m³ of raw gas per year.
- YPP Corporation signed a memorandum for a Green Energy Complex that could install roughly 1 GW of renewable capacity and, if feasible, produce up to 55 000 t of green hydrogen or 310 000 t of green ammonia annually; the project’s preliminary cost is about $2 billion.
- Tau-Ken Samruk and POSCO Holdings signed a memorandum on rare-earth separation and processing, and a joint research centre for strategic metals will be set up in Almaty.
- A memorandum on the peaceful use of nuclear energy covers small-modular reactors, nuclear-fuel supply chains and cooperation with the IAEA.
- Hyundai Motor Group also joined the Alatau City initiative, an 880-km² special economic zone north of Almaty, to explore AI-driven smart-city services and mobility solutions.
Background & context
Kazakhstan’s “industrial diversification” strategy aims to shift the economy from raw-commodity exports toward higher-value manufacturing and technology. In 2025 the country recorded €2.6 billion in trade with South Korea and seeks to double that figure while changing the export mix. South Korea’s “New Northern Policy” looks for secure supplies of critical minerals and renewable-energy resources, making Kazakhstan a natural partner.
Key figures & groups
- Kassym-Jomart Tokayev – President of Kazakhstan, led the Seoul visit.
- Lee Jae Myung – President of South Korea, co-hosted the summit.
- Sung Kim – Hyundai Motor Group, negotiated the Tucson deal.
Timeline
- September 15 2026 – Tokayev meets Hyundai’s Sung Kim; Tucson production agreement finalized.
- September 16 2026 – Central Asia-Republic of Korea Summit; 13 agreements signed, including the green-hydrogen memorandum, rare-earth cooperation and nuclear-energy MoU.
Data & statistics
- Total commercial agreements signed at the summit: $19 billion.
- Commitments represented by the 13 documents: $16.5 billion.
- Bilateral trade turnover with South Korea in 2025: €2.6 billion.
- South Korean FDI in Kazakhstan: €10.4 billion, with over 1,000 Korean companies operating locally.
- Karachaganak plant design capacity: 5 billion m³ / year of raw gas.
- Green-hydrogen complex target: 55 000 t / year of hydrogen or 310 000 t / year of ammonia; cost $2 billion, renewable capacity ?1 GW.
Why it matters / impact
The agreements aim to shift more of Kazakhstan’s mineral and energy wealth into domestic processing, manufacturing and technology. This creates industrial clusters, higher-value exports and skilled-job opportunities for Kazakhstan, while securing critical-mineral supplies and renewable-energy projects for South Korea. Joint ventures such as the green-hydrogen complex and the Alatau Smart-City could position Kazakhstan as a regional hub for clean-energy and digital infrastructure.
What’s next
- The green-hydrogen project will move to a detailed feasibility study before final investment decisions.
- Hyundai Engineering will advance design and procurement for the Karachaganak plant, coordinating with Italian partner SICIM.
- The Almaty rare-earth research centre will begin operations once technical specifications are finalized.
- Coordination mechanisms established at the summit will monitor progress and address regulatory or financing gaps.