Mongolia and South Korea are 'strategic partners'. Mongolia welcomes Korean companies to participate in resource development such as rare earths and major infrastructure projects."
Mongolian Prime Minister Gombojab Jandanshatar has identified South Korea as a key partner to share Mongolia's future. The relationship between Korea and Mongolia is viewed as a 'strategic partner' that creates mutual profits through technical cooperation and investment beyond simply importing and exporting resources. South Korea and Mongolia have held negotiations to sign an economic partnership agreement (EPA) from 2023 until the fourth round.
In an exclusive interview with Mail Business, Prime Minister Jandanshatar, who visited Davos, Switzerland to attend the 2026 World Economic Forum's annual meeting, stressed that he would institutionalize predictability to address the "uncertainty" that South Korean companies are most concerned about when investing in Mongolia. "We understand well that investors expect 'predictability' in long-term projects where large-scale capital is invested," he said. "We have an open position to discuss agreements to fix taxes, royalties and license conditions for a 'defined period' within the current legal framework such as the Investment Act and the Mining Act."
This suggests that the Mongolian government can positively consider expectations such as "fixing investment conditions within 10 years" that the South Korean side is interested in.
He suggested cooperation measures between Korea and Mongolia, ranging from investment systems to resources, infrastructure, trade, and culture, and added, "The (Mongolia) government will consider these agreements as strategic projects to ensure the predictability of regulations and protect investors' trust."
Mongolia is seeking to advance resource development. Core mineral cooperation, including rare earths, is also expected to expand the value chain, not just mining. "Minerals development goes beyond simple mining and requires technically complex and capital-intensive separation and refining processes," Prime Minister Jandanshatar said. "Mongolia is carefully considering both domestic and foreign processing options."
In particular, he noted, "Korean companies have the opportunity to participate in downstream processing, infrastructure development, technology transfer and capacity building as well as mining." It aims to strengthen essential infrastructure such as power, water resources, and environmental licensing first. "The Korea-Mongolia Rare Metal Cooperation Center, which opened in Ulaanbaatar in December last year, will be a platform for technical cooperation and joint investment," he said.
The Prime Minister also asked Korean companies to participate in large-scale infrastructure projects to solve traffic jams and housing difficulties in the capital Ulaanbaatar.
Currently, Mongolia is promoting the construction of Ulaanbaatar subways and trams, a smart satellite city near the new airport called "Khunnu City," and a "New Karakhorum" for balanced regional development. These projects are open to international partners based on competitive and non-discriminatory principles, he said. "There is great potential for Korean companies to contribute to construction, engineering, and smart cities."
Regarding investment incentives, he also said, "Depending on the nature and size of the investment, we will provide a stable investment framework, including a public-private partnership (PPP) model or a concession agreement (a contract that gives private companies certain rights or business rights that the government or public institutions have for a certain period of time)."
Prime Minister Zandanshatar also reported that the Mongolian government recently established an "investor protection center" to solve the practical difficulties faced by Korean companies. If the aforementioned "Scarcity Metal Cooperation Center" focuses on resource technology exchanges, the center serves as a window to protect corporate property rights and solve regulatory difficulties.
It also showed a willingness to expand the field of cooperation between Korea and Mongolia to advanced digital infrastructure beyond construction and civil engineering. Referring to Mongolia's long-term development plan, Vision 2050, and the 2026-2030 Development Guidelines, which recently passed parliament, the Prime Minister stressed that he wants to cooperate with Korea in future industries such as data centers and artificial intelligence (AI) beyond simple resource exports. This is interpreted as a proposal to create new value by combining digital technologies that Korea has strengths with Mongolia's energy and resource infrastructure.
Mongolia considers it important to sign an EPA with Korea to diversify its export structure concentrated in China and Russia. If the final agreement is signed, Korea will become the second country to sign an EPA with Mongolia after Japan. "If the EPA is signed, tariffs will be removed or reduced from more than 90% of bilateral trade items," the prime minister said. "Bilateral trade, which used to be centered on minerals, will be an opportunity to expand to consumer goods and services such as high-quality livestock, dairy products, and cashmere."
To this end, the Mongolian government is preparing to enter the Korean market by introducing a quality management system and a history tracking system that meets international standards. "Korea is Mongolia's sixth trading partner and a very important partner for export diversification," he stressed.
Meanwhile, Prime Minister Zandanshatar praised the cultural consensus between the two countries, citing the recent performance of Mongolian and Korean teams in the popular Netflix entertainment show "Physical: 100 (Asia)." "The traditional value of Mongolians' strong body and spirit met with Korean content and drew deep sympathy," he said. "In the future, we want to deepen mutual understanding by linking Mongolian wrestling, horseback riding, and nomadic culture with the Korean content industry."
Prime Minister Gombojab Jandanshatar
Mongolian Prime Minister Gombojab Jandanshatar is a former financial expert who served as vice president of the Central Bank of Mongolia (BOM) and Khan Bank and is a leading "economic expert" politician who founded the Mongolian Economic Forum (MEF). He led Mongolia's constitutional revision and governance transparency by serving as foreign minister and speaker of the National Assembly, and took office as the 33rd prime minister in June last year. Based on abundant practical experience and global senses such as Stanford University training, he is currently leading economic innovation, including Mongolia's resource diplomacy and expansion of foreign investment.
[Reporter Yoon Won-seop / Reporter Jeon Hyeong-min]

Published Date:2026-02-05