The Korea Herald
December 5
country famous for gold (fourth in the world in reserves) and cotton (fourth largest producer and second largest
exporter), Uzbekistan commenced diplomatic relations with Korea in January 1992, a year after the Central Asian
state became independent.Since then, the economic relationship between the two countries has blossomed.
To date, Korea has invested over $1.2 billion in Uzbekistan, and the volume of trade between the two countries in
the first 10 months of this year totaled $380 million, more than the year-end sum of $334 million last year.
And this is only the beginning, a Uzbekistan trade expert said."Korea is certainly one of Uzbekistan's major economic partners. We currently have very active Korean businesses in our country, not to mention many future projects," said Gayrat Tairov, commercial & economic counselor at the Embassy of the Republic of Uzbekistan, in an interview with The Korea Herald.One of those successful businesses is UzDaewooAuto, a joint venture between the Association of Uzavtosanoat and Korea's Daewoo Motors. Founded in August 1992, the company has been considered a role model for multiple reasons.Equipped with the latest achievements in engineering, the factory is capable of producing up to 200,000 automobiles annually (100,000 middle-class cars, 50,000 mini-buses and 50,000 small-class cars).
It entered a new business stage in August this year when it began manufacturing Matiz, a car that instantly won favor with domestic drivers. "This joint venture is very important not only locally but because it's helping boost the export potential of Uzbekistan. More than 30,000 automobiles - like Nexia, Damas and Tico by UzDaewooAuto - were exported to Russia this year," Tairov noted. According to the counselor, UzDaewooAuto is now working on expanding export opportunities to Europe, negotiating with British company Max Commodities, which is conducting tests of Nexia, Damas and Tico in Europe.
"In 2002, Max plans to import 6,000 automobiles produced by UzDaewooAuto," he said.In total, there are 14 accredited representatives of the Korean companies in Uzbek today, with 110 joint venture enterprises involving Korean capital in such fields as agriculture, textiles, consumer goods, radio-electric, cotton waste and cars and components. This tight relationship is good for Korea as well, of course, given Uzbekistan's reputation as a "model of development." Before the collapse of the Soviet Union, Uzbekistan was the third largest Soviet republic by population and the fourth largest in territory. Because of its large population of 25 million (most populous country in Central Asia) and rich natural resources, many experts believe that Uzbekistan will emerge as the dominant new state in Central Asia
Uzbekistan's total resource wealth is estimated at about $3.3 trillion, with annual mineral wealth at $5.5 billion. The country is actively involved in trade with other countries as well, the total volume reaching 63 percent last year. "Along with the increase in volume of traditional export products (cotton fiber, non-ferrous metals and fertilizers), oil refinery products, uranium, passenger cars, and electronics have widened the export structure," the counselor said.Trade with Korea has been fairly basic with Korea exporting mostly cars, electronic equipment (LG TV, Samsung) and oil equipment ($1 billion worth last year), and Uzbekistan exporting fiber like cotton, textiles, silk and gold to Korea.
But there are many other ways that Korea can help speed up Uzbekistan's economic development, Tairov said, naming instances like building more textile factories in the country to take advantage of its rich cotton supply and cooperating in the area of information and communication technologies (ITC). The fiber textile joint venture trend has already taken off with the opening of two new firms this year: Kabool-Feghana Ltd., the third joint venture with the Korean company Kabool Textile Ltd. that will annually produce goods for exports worth $50 million, and Usmanov opened by Daewoo Textile Co. in June. By contrast, the ITC sector in Uzbekistan is still in the early stages, the counselor said.
For example, though the number of Internet users in Uzbekistan has increased significantly during the last two years, the total figure totals just 140,000 people (less than 1 percent penetration) compared to Korea's 24 million people (56 percent). Furthermore, the Uzbek people that do have access to the Internet tend to be a very privileged group made up of young, highly educated and relatively well-to-do urbanites.
"Geographic disparities in access to the Internet are profound," he noted."Today, Uzbek lacks low-cost and ubiquitous telecommunications services and these services are absolutely intrinsic to widespread adoption of the Internet. I believe this is one area where Korea can help Uzbekistan greatly," the trade expert said.