The recent bid opening for the Ulaanbaatar Metro construction contractor on April 30, 2025, highlighted significant strategic ties between Mongolia and South Korean companies, coinciding with a high-profile visit from South Korean National Assembly Speaker Woo Won-shik.
Woo’s visit was a pivotal moment for South Korea’s “technological geopolitics” strategy, seeking to bolster ties through “parliamentary diplomacy” amidst a domestic constitutional crisis and shifting geopolitical dynamics in Northeast Asia. This initiative aims to enhance the Korea-Mongolia “technology-resource” relationship, although its long-term efficacy may be influenced by South Korea’s political landscape and Mongolia’s “multi-pillar” foreign policy approach.
- Strengthening Institutional Cooperation
Significant Advances in Parliamentary Diplomacy: During his visit, Woo Won-shik initiated the “South Korea-Mongolia Parliamentary Strategic Dialogue Mechanism,” establishing biennial discussions at the Speaker level and legislative working groups. This led to agreements such as the Digital Economy Partnership Agreement and the Rare Earth Cooperation Framework Agreement, aimed at enhancing competitiveness through policy preferences like tax reductions for South Korean firms participating in the Ulaanbaatar Metro project. These agreements also secure legal protections for projects worth approximately $2 billion, including the $1.3 billion Ulaanbaatar Subway.
Woo’s trip took place from April 26–30, aligning with the April 28 bid submission deadline for the Ulaanbaatar Metro, where South Korean firms such as Samsung C&T and Hyundai Rotem were prominent participants. The Ulaanbaatar Metro, the city’s first metro line, is set to address significant congestion challenges in a city with a population of 1.67 million and aims to cut commute times drastically.
Political Challenges and Policy Continuity: The cooperation mechanism led by the Democratic Party of Korea faces resistance from conservative opponents who push for aligning trade policies with security considerations. This political friction could delay beneficial revisions to investment agreements with Mongolia, directly affecting the strategic landscape for South Korean firms.
- Enhancing Economic Integration
Imbalance in Trade Structure: In 2024, bilateral trade between South Korea and Mongolia reached $617 million, with South Korea’s exports dominating the figures at $582 million, focusing on high-tech products essential for Mongolia’s infrastructure development.
Technological Collaboration in Resources: South Korea is exploring Mongolian rare earths to diversify supply chains. Despite logistical challenges, ongoing railway upgrades and favorable trade agreements aim to reinforce their economic ties.
Challenges from Regional Competitors: Mongolia’s reliance on Chinese and Russian channels for resource exports complicates its economic relationship with South Korea. However, the nation maintains its “multi-pillar” foreign policy amidst external pressures.
III. Fostering Human Connections
Talent Development Initiatives: The two countries have implemented various scholarship programs, enhancing educational exchanges to cultivate technical talent in key sectors.
Efforts to optimize medical visa policies are projected to significantly increase Mongolian medical tourism to South Korea, further strengthening human ties.
Visa Policy Challenges: Concerns about visa rejection rates highlight the need for sensitivity in immigration policies to maintain trust and bolster bilateral relations.
- Geopolitical Risks and Opportunities
Shifts under Progressive Leadership: Depending on the political tides in South Korea, the focus could shift toward continued cooperation in technology and trade with Mongolia, ensuring a stable diplomatic environment.
Potential Conservative Governance Risks: A conservative administration might prioritize security over economic cooperation, risking strain on Mongolia’s neutral standing and possibly invoking geopolitical tensions.
Mongolia’s Strategic Position: Regardless of South Korean political outcomes, Mongolia aims to navigate its own diplomatic strategy, leveraging its unique geopolitical position to balance relations with major powers.
Conclusion:
Woo Won-shik’s visit marks a significant advancement for South Korea’s strategy in Mongolia, enhancing institutional cooperation and diplomatic ties during a politically turbulent period. These initiatives not only aim to establish a stable bilateral relationship but also to reshape the economic landscape between the two nations, setting a foundation for future collaboration.
