Uzbekistan seeks expanded ties with Korea

President Islam Karimov of Uzbekistan, right, talks with President Lee Myung-bak during a summit in Tashkent on Aug. 23.

/ Courtesy of the Uzbekistan Embassy in Seoul

Sept. 1 marks 20th anniversary of the Independence of the Republic of Uzbekistan. Based on the five principles developed by the President Islam Karimov, which constituted the foundation of the well-known Uzbek model of development, the state has taken a role of the main reformer, and defined the basic strategic directions of economic policy which has been consistently implemented without any sudden leaps and shock therapy almost over two decades, and has yielded positive results.

Thanks to this course, within a short period of time the country had attained a grain and energy self-sufficiency, while steadily implementing strategic plans on reforming and modernizing the national economy. During the years of independence tens of new large enterprises equipped with modern technologies had been constructed in Uzbekistan. Among those are the automobile plant in Asaka city, which produces passenger cars, the Shurtan gas chemical complex manufacturing the polyethylene granules, the Kungrad soda ash factory, and the Dehkanabad factory of potash fertilizers which are used to raise fertility of the soil and productivity of agricultural crops.

The Uzbek model of economic development has ensured macroeconomic stability and balance of internal and external sectors of the national economy, and also its sustainable growth. Throughout last years the growth of GDP Uzbekistan was one of the highest in the world _ between 8-9 percent. Last year GDP growth made up 8.5 percent. The increase of volume of industrial output, ensuring of stable macroeconomic indicators, state budget surplus and restraint of inflation at moderate level have increased the investments’ inflow into the national economy in 2008-2010 by 1.8 times, including foreign investments and loans _ 2.4 times. If in the early 90’s share of FDI in total investment volume amounted to 10-15 percent, now the figure is an average of 83-85 percent. Over the years the country has created more than 4,200 enterprises with foreign capital.

Steadily high rate of economic growth, stability and credibility of the finance and bank system, successful transformation of economical structure are the best proof of a rightness of the way which Uzbekistan has chosen after gaining the independence. Over the last 10 years (2000-2010) GDP has grown almost two times, and per capita by 1.7 times. That itself testifies to the sustained growth of the economy and significant changes occurred in the country.

Looking back I would like to notice, that bilateral relations between the Republic of Uzbekistan and the Republic of Korea established in 1992 have gone from strength to strength over the past years. Both countries share many common interests. In particular, Tashkent shares Seoul’s desire for peace and stability in the region, and nuclear free status of Korean peninsula. Uzbekistan supports President Lee Myung-bak’s initiatives on the “new Asian diplomacy” and the “energy diplomacy.” Uzbekistan was among first countries to support Pyeongchang as a candidate for the 2018 Winter Olympic Games.

South Korea is one of the largest investment partners of Uzbekistan. Korean investments in the country's economy will exceed $5 billion in the coming years. More than $2 billion of this amount has been mastered up to now. The two countries established the regime of great favor. As of 2010, bilateral trade increased by 31.4 percent and totaled more than $1.6 billion. Over 350 companies with Korean capital operate in Uzbekistan.

The Uzbek-Korean ties have been recently intensified in the cultural-humanitarian sphere too, especially between universities and academic institutions. More than 10 Uzbek universities cooperate with 20 South Korean universities. The Korean Education Center has been successfully operating in Tashkent. Since 1992 it trained 3,500 Uzbekistani people.

The two countries regularly hold high-level meetings, which reflect the intensive development of bilateral relations. Last summit was held on August 23-24, 2011, in Tashkent. President Lee Myung-bak's two-day state visit has strengthened once again his personal bond with the President Islam Karimov. The two leaders have met with each other every year since 2008. At the summit, they expressed satisfaction with the status of relations and cooperation between the two countries and agreed to work together to further expand them. They also agreed to boost people-to-people changes to mark next year's 20th anniversary of bilateral diplomatic relations. Lee praised Karimov’s role in helping to stabilize Central Asia and Afghanistan, and asked for Uzbekistan’s continued support for South Korea in international arenas. Islam Karimov spoke highly of Seoul's role in the international community, such as its hosting of last year’s G-20 summit and its planned hosting of next year’s Nuclear Security Summit, and pledged to continue to support South Korea on the international stage.

South Korea and Uzbekistan also sealed about 20 other economic cooperation agreements in health care, medicine, IT, textiles and other industries. Among them a $4.16 billion package of deals to develop the Surgil gas field near the Aral Sea and build a gas and chemicals plant in Uzbekistan. The project is the largest-ever contract between the two countries.

There are no doubts that the visit has significantly contributed to the strategic partnership and cooperation between Uzbekistan and Korea, and raised bilateral relations to the new heights.

I am glad to inform that on occasion of 20th anniversary of the Independence the President Islam Karimov of Uzbekistan has awarded Kim Yong-gu, a member of the National Assembly, Cho Yang-ho, chairman of Korean Air company, and Son Kyong-shik, chairman of the Korean Chamber of Commerce and Industry with “Dostlik” (friendship) Order for their great contribution to the development of strategic partnership and friendship between Uzbekistan and Korea, and strengthening mutual understanding between the two nations.

In conclusion, on behalf of the people and the Government of Uzbekistan, I would like to extend my cordial greeting to all our compatriots as well as to friendly Korean people on occasion of 20th anniversary of Uzbekistan Independence Day!