South Korean President Lee Jae-myung conducted a state visit to Mongolia on July 9 (local time) and held a summit with President Okhna Khurelsukh, where both leaders announced the agreement in principle on a Comprehensive Economic Partnership Agreement (CEPA). The agreement aims to expand cooperation on critical minerals including rare earths and increase bilateral trade to $1 billion by 2030. This marks the first state visit by a South Korean president to Mongolia in 15 years, since former President Lee Myung-bak's visit in 2011, reflecting strengthened economic and diplomatic ties between the two nations.
South Korea and Mongolia Finalize CEPA Tariff Elimination Terms
President Lee and President Khurelsukh issued a joint declaration at the Government House in Ulaanbaatar following their summit, officially announcing the agreement in principle on the bilateral CEPA. Once the CEPA enters into force, import tariffs of 2-5% currently imposed on Mongolian copper, molybdenum, and rare earths will be eliminated. Mongolia agreed to immediately eliminate tariffs on Korean cosmetics and to phase out tariffs on ramen and seasoned seaweed within five years.
South Korea will establish a foundation to diversify its critical minerals supply chain, reducing dependence on China. Mongolia is recognized as having the world's second-largest reserves of rare earths including neodymium, which is essential for electric vehicles, robotics, and wind power generation. The country is a resource-rich nation possessing various strategic minerals including copper, molybdenum, and fluorite.
Both Nations Commit to $1 Billion Trade Target by 2030
Both countries agreed to strengthen cooperation centered on the Rare Metals Center established at the end of last year to expand joint research on critical minerals and supply chain stability. President Lee stated in the joint press conference, "South Korea and Mongolia will work together to achieve $1 billion in bilateral trade by 2030, using CEPA as an opportunity."
Beyond economic cooperation, both nations agreed to strengthen diplomatic and security cooperation. Mongolia, which maintains traditional friendly relations with North Korea, agreed to cooperate in creating dialogue conditions for peace on the Korean Peninsula and improvement of inter-Korean relations. President Khurelsukh responded, "I firmly believe that this historic visit will open a golden era in bilateral relations."
Leaders Witness Signing of 21 Bilateral Cooperation Documents
After concluding the summit, the two leaders observed the signing of 21 cooperation documents across various fields including a Memorandum of Understanding (MOU) for science and technology cooperation for joint research on natural resources, as well as agreements on critical minerals, energy, health, education, and culture. The ceremony included an MOU between Korea Heritage Service Commissioner Heo Min and Sampildondov Cholon, Director of Mongolia's National Chinggis Khaan Museum, for cooperation in underwater cultural heritage.
FAQ
What did South Korea and Mongolia announce on July 9?
South Korean President Lee Jae-myung and Mongolian President Okhna Khurelsukh announced the agreement in principle on a Comprehensive Economic Partnership Agreement (CEPA) during a state visit summit held on July 9 (local time) in Ulaanbaatar. The leaders also committed to increasing bilateral trade to $1 billion by 2030.
What tariffs will be eliminated under the South Korea-Mongolia CEPA?
Once the CEPA enters into force, import tariffs of 2-5% on Mongolian copper, molybdenum, and rare earths will be eliminated. Mongolia will immediately eliminate tariffs on Korean cosmetics and phase out tariffs on Korean ramen and seasoned seaweed within five years.
How many cooperation documents did South Korea and Mongolia sign?
The two nations signed 21 cooperation documents across various fields including science and technology, critical minerals, energy, health, education, culture, and underwater cultural heritage during the summit on July 9.
