ASTANA – Kazakhstan and South Korea are advancing a growing portfolio of investment and industrial projects, including 67 initiatives worth a combined $6.9 billion in Alatau City and 51 joint industrial projects, as the two countries prepare for the first South Korea–Central Asia Summit in Seoul on Sept. 16.
President Kassym-Jomart Tokayev held a series of meetings with the leaders of major Korean companies. Photo credit: Akorda.
President Kassym-Jomart Tokayev held a series of meetings with the leaders of major Korean companies, while senior Kazakh officials engaged with Korean businesses and government representatives on projects spanning automotive manufacturing, energy, infrastructure, hospitality, artificial intelligence and space technologies.
Alatau City emerges as major platform for Korean investment
During a meeting with Lotte Group Chairman Shin Dong-bin, President Tokayev highlighted the company’s longstanding contribution to Kazakhstan’s economy, including its activities in the food industry and the modernization of production facilities in Almaty and Shymkent.
Lotte also plans to expand its presence in logistics and hospitality. Tokayev welcomed the signing of an agreement to build the first Lotte-branded hotel in Almaty and noted the potential for further expansion. Shin confirmed Lotte’s plans to invest in food production, logistics and hospitality and said the company intends to participate in Alatau City development projects, including the Iconic Complex.
The development of Alatau City was also central to Deputy Prime Minister Kanat Bozumbayev’s meetings in South Korea with representatives of Korea Electric Power Corporation (KEPCO), Lotte Hotels & Resorts, Doosan Enerbility and the Global Green Growth Institute (GGGI).
With KEPCO, the sides discussed the development of Alatau City’s power infrastructure, including electricity transmission and distribution systems, substations, integration with the national grid and local power networks. Doosan Enerbility and GGGI discussed the development of the city’s own generation capacity. One option under consideration is a 2×250-megawatt gas-fired power plant, with the potential for a subsequent transition to hydrogen. Doosan Enerbility could serve as the project’s technology and EPC partner, with a public-private partnership mechanism being considered.
Lotte Hotels & Resorts also discussed a multifunctional complex in Alatau City featuring an L7 by Lotte hotel. The project, valued at more than $200 million, is expected to include a 180-room hotel, office space and residential apartments.
Kazakhstan and South Korea explore new digital and space projects
At a meeting with Hanwha Group Vice Chairman Kim Dong-won, Tokayev outlined Kazakhstan’s efforts to build a national artificial intelligence ecosystem and develop digital infrastructure. He invited Hanwha Group to implement joint projects in Kazakhstan and use the country as a technological platform for entering Central Asian markets.
Separately, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev visited CONTEC Space Group’s assembly and testing complex in Seoul. The sides discussed CONTEC’s potential investment in the Galam project, joint satellite and component production, and development of a network of ground stations.
One proposal is to establish a manufacturing hub in Kazakhstan for satellite components, with subsequent supplies to markets in Central Asia, the Middle East and Europe. The sides are also considering localizing the production of large ground-based antenna systems.
Another area of cooperation is using artificial intelligence to process satellite imagery, potentially expanding the use of Earth observation data for practical applications. A Kazakh subsidiary of CONTEC is expected to be established in the near future, with further details of the partnership expected to be presented during Tokayev’s state visit to South Korea.
Hyundai seeks deeper automotive localization
During a meeting with Hyundai Motor Group President and Head of Strategy and Planning Sung Kim, Tokayev discussed expanding investment and industrial and technological cooperation.
Representatives of Hyundai Engineering and Kia also took part in the meeting. Tokayev identified a longer-term goal of turning Kazakhstan into a major regional center for automobile production and exports, with an emphasis on developing full-cycle manufacturing.
Electric mobility was also identified as a promising area of cooperation, including electric vehicle and component production and the development of charging infrastructure.
Hyundai Motor Group confirmed its intention to expand its presence and deepen production localization in Kazakhstan. Hyundai Engineering said it is ready to develop cooperation in the oil and gas sector, industry and infrastructure, while Kia representatives said they intend to cooperate on developing a national Kazakh automotive brand.
Several agreements were exchanged following the meeting, including between QazaqGaz, Hyundai Engineering and SICIM Kazakhstan on constructing a gas processing plant in western Kazakhstan, and between Hyundai Motor Company and Astana Motors on producing a new Hyundai Tucson model.
KIND to support Alatau City and transport infrastructure
Tokayev also met with Kim Bok-hwan, president and CEO of the Korea Overseas Infrastructure & Urban Development Corporation (KIND). The meeting focused on KIND’s potential involvement in the development of Alatau City. Tokayev emphasized the project’s potential and called for greater Korean participation in infrastructure and investment initiatives in the new city.
He also invited KIND to participate in Kazakhstan’s large-scale plans to modernize social and transport infrastructure. The sides also discussed establishing a Kazakh-Korean joint investment fund to attract Korean capital and technology to infrastructure and energy projects in Kazakhstan.
The sides also discussed potential KIND participation in modernizing the country’s transport and logistics system, including the development of the ports of Aktau and Kuryk and projects involving the construction and renovation of regional airports.
The meeting was followed by an exchange of documents, including a memorandum of understanding between Caspian Group and KIND, an agreement between Alatau City Authority and KIND on developing a master plan for Alatau Smart City, and a strategic agreement between Qazaqstan Investment Corporation and KIND.
The series of meetings comes ahead of the first Korea–Central Asia Summit, which will bring together South Korean President Lee Jae Myung and the leaders of all five Central Asian states in Seoul on Sept. 16.
The summit is expected to provide a high-level platform to strengthen cooperation between South Korea and Central Asia, while business meetings involving Kazakhstan and major Korean corporations underscore the growing focus on investment, technology transfer, infrastructure and industrial cooperation.
