The first Mongolia-Korea Economic Forum was organized by the Mongolia-Korea Economic Forum NGO, and the Mongolian side called for creating a stable legal environment for expanding economic ties between the nations.
The organizers believe that there is a need to combine Mongolian natural resources with Korean technology, finance and human resources and create cooperation for the future.
Mongolia established diplomatic relations with South Korea 24 years ago, and it has since been one of the nation’s most important third neighbors. During this time, the two sides have expanded bilateral relations in all sectors. Korea is Mongolia’s fourth main trade partner. The biggest Korean companies are contributing in national development projects. For example, Samsung Group is a contractor in building a new airport and a railway between Tavan Tolgoi and Gashuunsukhait, and Tosko Group is working on building UB’s 5th power station. During the economic forum, both sides agreed that it’s time for Korea to not only be a contractor, but a major investor.
The initiator of the NGO, MP G.Batkhuu said, “We will celebrate the 25th anniversary of diplomatic relations with Korea in 2015. We organized this forum in order to define beneficial bilateral economic relations, exchange the experiences of our entrepreneurs, connect them and draw in investment. In the framework of the official visit by the Chairman of the Parliament and Minister of Foreign Affairs, we organized two major events, one of which was easing visa criteria.”
Minister of Economic Development O.Chuluunbat, Secretary of the Ministry of Foreign Affairs B.Boldbaatar, Executive Director of the National Council of PSD Ch.Khashchuluun, and Head of the Business Group B.Byambasaikhan gave talks on bilateral relations, travel conditions for citizens, the economy and business environment, and expressed their thoughts and proposals.
During the forum a cooperative memorandum was signed between Erdenes Tavan Tolgoi and Delim Corporation. The companies will set an agreement on coal transport. Delim will be responsible for coal transport from Tavan Tolgoi to Tsagaan Khad with Korean double-trailer trucks.
The Executive Director of Delim Corporation, Sang Kee Lee, said, “Last winter we established a cooperative memorandum with the major coal deposit owner Erdenes Tavan Tolgoi, and today we signed a bilateral cooperation agreement. Our company is ranked fifth in marine and land transportation in Korea.
Our trucks are equipped with GPS, which means that we are able to control all processes of transportation. We will develop the logistic transport sector in Mongolia. Therefore, we are looking for an opportunity for transportation to China through Mongolia.” He didn’t hide his anxiety about payments from Erdenes Tavan Tolgoi. Delim Corporation was established in 1939, and has over 20 subsidiary companies. According to the agreement on coal transportation with Mongolia, they will pay close attention to human resources, health and education.
Executive Director of Erdenes Tavan Tolgoi Ya.Batsuuri stated, “This forum is aimed to develop minerals and other sectors, provide economic growth, create a pleasant business environment, support investment, find new solutions, and connect entrepreneurs. In our collaboration we are ready to increase the export products of Erdenes Tavan Tolgoi, and simultaneously create projects that can positively influence the environment.
A project using coal methane gas with Korea Gas Corporation was also commissioned during the days of the economic forum. The official opening of gas wells at the Erdenet mine was held yesterday.
Korean investors didn’t hide their fear of unstable conditions in the Mongolian legal environment. The Mongolian side tried to reassure them, stating, “The laws and decisions approved by the parliament and government created pleasant and stable conditions for investors, and according to the current laws, if the case is invested, a stable legal environment will be valid until the deadline of the agreement.”
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