President Park Geun-hye’s visit to Mongolia this week is expected to open up an unexploited niche market for South Korean companies, especially for small and medium-sized firms in infrastructure, medical care and culture sectors, according to Cheong Wa Dae on Tuesday.
“Mongolia, with a population of 3 million, may be a relatively small market in size but has risen as a promising niche market (for South Korea), riding on the Korean wave,” said senior presidential secretary for economic affairs Kang Seog-hoon during a press briefing.
The president is scheduled to visit Ulaanbaatar, the capital of the central Asian country, from Thursday to Monday to attend the 11th Asia-Europe Meeting summit and a bilateral summit with Tsakhiagiin Elbegdorj.
President Park Geun-hye shakes hands with Mongolian counterpart Tsakhiagiin Elbegdorj during the latter’s visit to Seoul in May. Cheong Wa Dae
“South Korea is Mongolia’s fourth-largest partner in trade, yet the bilateral trade volume has remained relatively low, considering the full economic potential,” the senior official said.
“Now that Mongolia is seeking to lessen its dependency on its top trade partner China and No. 1 energy provider Russia, and to diversity its external cooperation, it is crucial that we make the most of the given situation.”
The total trade volume of the two states as of the end of last year stood at $292 million, of which 84 percent was made up of South Korea’s exports to Mongolia.
The greatest synergy is expected in the infrastructure sector, due to the Mongolian government’s blueprint to back the nation’s economic growth by expanding power production capacities and transmission network.
“Despite the recent economic setbacks, Mongolia is one of the world’s top 10 resource-rich countries, ranking second in copper and fourth in coal,” Kang explained.
Its economic growth, which averaged 13.8 percent in 2011-2013, is expected to take an upturn in 2017 and to soar up to 5.7 percent in the following year, according to the International Monetary Fund.
Other potential fields are health and medical care, as well as culture, according to the Blue House official.
“Because of its vast area of land and limited access to medical services, Mongolia has high demands on our advanced telemedicine system,” he said.
Citing the popularity of K-pop culture among the Mongolian public, Kang claimed that South Korean firms have a forte over other market competitors.
The two states will also promote cooperation in the new renewable energy sector, seeking to curb Mongolia’s desertification and to make use of its abundant solar and wind energy, according to the economic chief.
Accompanying the president’s visit this time will be the largest-ever economic delegation, consisting of 109 companies, among which 85 percent are small and medium-sized firms.
“We consider this (active participation from companies) a success of past business delegations,” he said.
The participating companies will be attending a business forum with Mongolian counterparts and individual consulting sessions next Monday, following the presidential summit slated for this Friday.
By Bae Hyun-jung (
tellme@heraldcorp.com)