S. Korea, Uzbekistan sign string of economic cooperation agreements

By Chang Jae-soon
TASHKENT, Aug. 24 (Yonhap) -- South Korea and Uzbekistan agreed to jointly explore rare earth resources in the Central Asian nation and signed other economic cooperation agreements Wednesday, a day after sealing a massive deal to develop a gas field and build a related plant.
A total of seven memorandums of understanding were signed during a forum with about 150 business leaders of the two countries that was also attended by President Lee Myung-bak, Uzbek President Islam Karimov and government officials.
Besides the rare earth exploration agreement, the MOUs also included one about textile technology cooperation, which officials said is expected to help boost South Korea's exports of textile technology and equipment to Uzbekistan, the world's second-largest exporter of raw cotton.
The agreements were the latest tangible results of Lee's two-day trip to Tashkent.
On Tuesday, the two countries signed a US$4.1 billion package of deals to develop the Surgil gas field near the Aral Sea and build a gas and chemical plant, the largest-ever contract between South Korea and Uzbekistan since they established diplomatic relations in 1992.
Also signed on Tuesday was a $7 million contract to export an information technology system to modernize Uzbekistan's stock market.
During the business forum, Lee and Karimov also watched via video link the unveiling of a commemorative stone at the plant construction site in a symbolic commitment to the project. In summit talks on Tuesday, Lee and Karimov pledged to work together closely for its success.
Lee told the business leaders that he hopes that the Surgil and other joint projects will go smoothly so as to contribute to Uzbekistan's economic development. Lee also praised Karimov for his role in facilitating the country's high economic growth, officials said.



The Surgil gas field is believed to be holding an estimated 130 billion cubic meters of natural gas (960 billion tons of LNG, or 830 million barrels of oil equivalent). The project calls for developing the field and building a processing plant, and is expected to cost US$4.16 billion in total.
Also on Tuesday, four engineering, procurement and construction (EPC) contracts were signed involving South Korea's GS Engineering & Construction Corp., Samsung Engineering Co., Hyundai Engineering Co. and Uzbekistan's state-run gas corporation UNG, and UZKOR, a 50-50 joint venture set up between the two countries to develop the gas field.
South Korea and Uzbekistan have pursued the Surgil project since Korea Gas Corp. (KOGAS) and UNC signed a memorandum of understanding in 2006. The two sides have since established the joint venture UZKOR in 2008, in which a Korean consortium led by KOGAS holds a 50 percent stake.
Uzbekistan was the second leg of Lee's three-nation tour of Central Asia. He visited Mongolia earlier this week and is scheduled to depart for Kazakhstan later Wednesday.
jschang@yna.co.kr