While raw materials and rare metals are becoming increasingly significant to the South Korean economy, experts suggest Asia’s fourth-largest economy expand its cooperation on future energy and key mineral sources with Mongolia.

Jung Tae-yong, a professor at Yonsei University’s Graduate School of International Studies, and Kang Sung-jin, an economics professor at Korea University, held a roundtable meeting last week to explore Mongolia’s growth potential and Korea’s business opportunities there.

“Korea is only a two-and-a-half-hour flight from Mongolia, making it geographically close. Emotionally and historically, there is also little distance between the two countries,” Jung said.

Korea and Mongolia established trade ties in March 1990. Korea is Mongolia's fourth-largest trading partner, with foreign trade volume amounting to $21.2 billion in 2022, according to the Korea Trade-Investment Promotion Agency.

Although it is a relatively smaller trading partner for Korea, Jung said it was a mistake that Asia’s fourth-largest economy had not engaged more actively with Mongolia.

"It is not about selling more Samsung Galaxy smartphones, but whether we can secure the resources needed to manufacture Galaxy devices. In that sense, Mongolia is an attractive country (to obtain such materials),” the professor explained.

Kang, who runs the global energy technology policy professionals program at Korea University, has taught eight Mongolian students and realized that Korea and Mongolia can build a "win-win" partnership by filling in each other's shortcomings.

“Mongolia is known as a country that is rich in rare earth elements and uranium. However, since they don’t know how many resources they have, we can help them find,” Kang said. “Mongolia can also be our energy partner in terms of solar energy and even carbon markets. Their vast land can be used as other sources such as vehicle test bed as well.”

“For Mongolia, when Ulaanbaatar undergoes urban development, there will be an electricity shortage, so they hope that some other country will help with that. While there is potential for solar and wind energy, they lack the money and technology. Korea could assist with this,” Jung added.

“On the other hand, what we need most is to manufacture electric vehicle batteries, which require rare earth elements, lithium, manganese and cobalt. We expect to be able to source these resources from Mongolia.”

Yet Mongolia is still politically and economically unstable enough to require International Monetary Fund assistance, which according to Kang makes Korean conglomerates less attracted to the country.

Therefore, he urged the public sector to take the initiative to open up for cooperation first to provide the next opportunities for private firms.

Citing an example of the lack of a direct route from Chinggis Khaan International Airport to downtown Ulaanbaatar, Jung suggested the Korean public sector provide transportation infrastructure through official development assistance.

Both experts called for a systematic national strategy for expanding cooperation between the two countries. The professors said Korea should create a master plan for Mongolia and invest in long-term future planning to open business opportunities in Mongolia.

Herald Corp., the publisher of The Korea Herald and Herald Business, along with Anse Foundation, will host the Korea-Mongolia Future Strategy Forum in Ulaanbaatar, the Mongolian capital, on Aug. 27. Kim Sook, executive director of the Ban Ki-moon Foundation, will be among some 200 participants. The two professors believed the forum could be a platform to connect both countries and form a “win-win” strategy.