Seoul summit: Uzbekistan in new C5+1 industrial architecture

The upcoming first Central Asia-Republic of Korea Summit in Seoul gives the C5+1 format a more substantive economic dimension. At the center of the new agenda are industrial modernization, infrastructure, critical minerals and energy, workforce development and private-sector participation. The institutional foundation for this work is provided by a dedicated consultative mechanism of industry ministers, designed to facilitate regular sectoral dialogue, identify joint initiatives and develop a list of priority projects.

This creates an opportunity to align the national industrial priorities of Central Asian countries with the technological and investment capabilities of the Republic of Korea at the level of specific production chains. Technology, infrastructure, financing and markets thus come together within an integrated framework for implementing major joint initiatives.

The potential of this model is particularly evident in the case of Uzbekistan. Relations between Tashkent and Seoul have held the status of a Special Strategic Partnership since 2019, while cumulative Korean direct investment in Uzbekistan’s economy has exceeded $8 billion. Between January and June this year, bilateral trade approached $1 billion, increasing by 11.5 percent.

Behind these figures lies an established technological foundation for partnership. Joint centers operate in Uzbekistan in the textile industry, rare metals and alloys, agricultural machinery and e-government, while cooperation is also developing in chemical technologies and construction. This network provides sustainable channels for the transfer of engineering solutions, applied knowledge and manufacturing expertise.

This accumulated foundation allows Uzbekistan’s C5+1 agenda to focus on further developing processing, localization, technological upgrading and the production of higher value-added goods. At the same time, the regional format broadens the range of potential partners and links between Central Asian enterprises and Korean businesses.

One of the most promising areas is critical minerals. Cooperation covers the entire technological chain — geological exploration, processing, refining and the development of value-added production. Under this model, Central Asia’s mineral resource base becomes a starting point for deepening technological ties and establishing new production capacities within the region.

Uzbekistan already has a concrete foundation in this area. The Uzbek-Korean Scientific and Technological Center for Rare Metals and Alloys operates in the country. Its potential provides opportunities to expand cooperation in materials science, processing technologies, research and specialist training, with prospects for subsequent industrial application.

The development of more sophisticated industries simultaneously increases infrastructure requirements. Within the C5+1 agenda, this area encompasses energy, industrial complexes, transport and logistics, urban infrastructure, as well as the entire life cycle of major projects — from planning and construction to modernization and operation. For investors, this means an opportunity to consider a production site together with the necessary energy, engineering and logistics solutions.

Uzbek-Korean cooperation already has a financial foundation for projects of this scale. Uzbekistan’s cooperation program with the Economic Development Cooperation Fund of the Republic of Korea for 2024-27 amounts to $2 billion. In parallel, a new portfolio of initiatives is being developed, while financing mechanisms without sovereign guarantees and on the basis of public-private partnerships are being explored.

The expansion of available instruments creates greater scope for commercially viable projects, private capital and long-term partnerships between companies. This is particularly important for industrial and infrastructure cooperation involving long investment cycles, where the financing structure largely determines the feasibility of implementation and subsequent project expansion.

As production becomes more technologically sophisticated, the requirements for workforce qualifications also increase. Skills development and workforce training are among the priorities of the C5+1 industrial mechanism. Uzbekistan has already established a practical foundation in this area: four vocational education centers established with the participation of the Korea International Cooperation Agency operate in Tashkent, Fergana, Shahrisabz and Samarkand, while another is under construction in Urgench.

The further development of this model increasingly shifts to the corporate level. It is here that technologies and accumulated knowledge are translated into new production capacities, while sectoral priorities are transformed into investment decisions and commercial products. The private sector, financial institutions and research organizations therefore play an important role in C5+1 industrial cooperation.

The formation of a list of priority projects gives this work practical continuity. Such an instrument makes it possible to link promising areas with specific partners and sources of financing and to maintain progress on these initiatives between meetings of the industrial mechanism.

Uzbekistan enters the new regional architecture with a substantial practical foundation: many of its elements are already functioning within the bilateral partnership with Korea. Investment is combined with technological centers, financial programs, a system for training specialists and experience in implementing complex projects. C5+1 provides an opportunity to bring this foundation to a broader level by connecting the national capabilities of Central Asian countries through new production linkages.

This is where the main economic potential of the Seoul Summit lies for Uzbekistan. The Special Strategic Partnership with the Republic of Korea gains a regional dimension through deeper processing, technological localization, new production capacities and the expansion of finished products into new international markets. The accumulated Uzbek–Korean experience is becoming one of the practical elements of the C5+1 industrial architecture, strengthening Uzbekistan’s role in the Republic of Korea’s technological and industrial partnership with Central Asia.

This article was provided by the Embassy of Uzbekistan in Korea.