InterviewMongolian economy minister seeks investment, cooperation in AI, energy with Korea

Nyam-Osor Uchral, Mongolia's first deputy prime minister and minister of economy and development, speaks during an interview with The Korea Times in Seoul, Monday. Korea Times photo by Shim Hyun-chul

Amid the 35th anniversary of diplomatic ties between Mongolia and Korea, cooperation between the two nations is more critical than ever as rising geopolitical tensions around the world underscore the need for resilient partnerships.

With Mongolia accelerating its efforts to attract global investors, Nyam-Osor Uchral, the country’s first deputy prime minister and minister of economy and development, underscored the country’s determination to deepen economic ties with Korea in sectors ranging from mining and energy to advanced technology and artificial intelligence (AI), highlighting its drive to create a more transparent and investor-friendly climate.

“Last year, foreign direct investment in Mongolia increased significantly, by about 75 percent. However, Korea’s share accounted for only 1.4 percent, which still feels quite insufficient,” the minister said during an interview with The Korea Times in Seoul on Monday.

“The Mongolian government recognized the need to further expand the two countries’ ties, holding rounds of discussions for an economic partnership agreement … If the agreement is signed, there could be major changes in the daily lives of both peoples.”

The minister emphasized Mongolia’s status as a major resource powerhouse, with approximately 93 percent of its total exports consisting of mining products, which presents major opportunities for collaboration.

“We view uranium as a new critical energy resource for the future, alongside rare metals … However, in the field of rare metals, timing is critical, so those who invest first have the greatest opportunity to gain the most benefits,” he said.

“So if there’s a Korean company investing in (that field), it will be able to source raw materials directly within Mongolia, process them domestically and then export the finished products through various preferential trade arrangements Mongolia already has.”

Prime Minister Kim Min-seok, right, speaks with Nyam-Osor Uchral, left, Mongolia's first deputy prime minister and minister of economy and development, during their meeting in Seoul, Tuesday. Courtesy of Prime Minister's Office

He pointed to sweeping regulatory reforms that are creating more favorable conditions for overseas businesses seeking to tap Mongolia’s dynamic economy and rich resources, noting that it will make the country a more attractive destination for global capital and innovation.

“Especially for foreign enterprises, the process for business permits or approvals in Mongolia used to be very time-consuming, which could be seen as a kind of bureaucracy. We are now making maximum efforts to streamline these procedures,” Uchral said, adding that the reform also ensures that businesses can keep their approval under the previous regulation despite legal changes.

“To protect investors’ rights and interests, we are also ensuring the stability of legal regulations to prevent reinterpreting the law,” he said.

The minister also highlighted the critical role that Korea’s advanced technology can play in diversifying and modernizing Mongolia’s economy in the rapidly evolving digital era. Reflecting on his two-year tenure as digital development minister, he said he gained firsthand insight into the transformative potential of Korean innovation.

“I was deeply aware of the strengths of Korea’s cutting-edge technology, and I believe it can contribute significantly to Mongolia’s industrial diversification and urban development, including in areas such as smart city projects,” he said.

He expressed hope that more Korean companies can engage in consulting and get involved in Mongolia’s technological development.

“If there is a company that wishes to build a data center in Mongolia, we are fully prepared to revise our legal framework to support it,” the minister said, noting that the country’s powerful solar and wind resources will contribute to running the data center.

“It is very rare worldwide for a country to possess such diverse renewable energy assets. This makes Mongolia one of the most suitable places to establish data centers from a climate and resource perspective. When we think about Mongolia’s future development, we envision it closely tied to such advanced and innovative technologies.”