A Review of the Korea Energy Diplomacy in Central Asia : Focusing on the Major Tasks and Perspectives
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The main aims of this study is to analyze the strategic characteristics and outcomes of energy diplomacy with Central Asia, which has emerged as a major target for Korea’s diplomacy policy in an era characterized by rising oil prices. Central Asia is the first region dedicated to enhancing resources diplomacy. Since the breakup of the former Soviet Union in 1991, relatively stable political structures have been maintained in the region, thanks to the introduction of democracy and a free market economy. Estimated as having the world’s third largest oil and gas deposits, it is emerging as a new market characterized by sustainable economic growth and the influx of oil dollars. In this regard, the region has the great potential in terms of the value and achievement of bilateral and packaged strategy in which Korea imports resources while handing down its technologies such as IT, construction, transportation and logistics, and its experience of growth. It also accompanies official development assistance and the establishment of a network of able human resources. The recent biggest achievement of this resources diplomacy with Central Asia is the various fruitful instances of economic cooperation between South Korea and the Central Asian region in addition to the signing of seven MOU deals, including a contract with Kazakhstan for a stake in Kazakhstan’s Zhambyl marine mining lot(1 billion barrels of estimated deposits), a contract with Uzbek and Kazakhstan for the long-term Uranium introduction, and an agreement with Turkmenistan for cooperation in the electric power sector and energy R&D. To address the diversification of energy resources suppliers in Central Asia, Russia, Africa and South America, in addition to the Middle Eastern region, and the development of foreign oil fields is not only the most critical and practical alternative but also an axis of resources diplomacy in the mid to long term. At the same time, as spiraling high oil prices continue and with the further intensification of resources nationalism, urgent matters such as the development of alternative energy sources to oil resources and the transformation of the state-run energy company into large-scale globalized state-run oil companies should be addressed at the level of national strategy.
Abstract
The main aims of this study is to analyze the strategic characteristics and outcomes of energy diplomacy with Central Asia, which has emerged as a major target for Korea’s diplomacy policy in an era characterized by rising oil prices. Central Asia is the first region dedicated to enhancing resources diplomacy. Since the breakup of the former Soviet Union in 1991, relatively stable political structures have been maintained in the region, thanks to the introduction of democracy and a free market economy. Estimated as having the world’s third largest oil and gas deposits, it is emerging as a new market characterized by sustainable economic growth and the influx of oil dollars. In this regard, the region has the great potential in terms of the value and achievement of bilateral and packaged strategy in which Korea imports resources while handing down its technologies such as IT, construction, transportation and logistics, and its experience of growth. It also accompanies official development assistance and the establishment of a network of able human resources. The recent biggest achievement of this resources diplomacy with Central Asia is the various fruitful instances of economic cooperation between South Korea and the Central Asian region in addition to the signing of seven MOU deals, including a contract with Kazakhstan for a stake in Kazakhstan’s Zhambyl marine mining lot(1 billion barrels of estimated deposits), a contract with Uzbek and Kazakhstan for the long-term Uranium introduction, and an agreement with Turkmenistan for cooperation in the electric power sector and energy R&D. To address the diversification of energy resources suppliers in Central Asia, Russia, Africa and South America, in addition to the Middle Eastern region, and the development of foreign oil fields is not only the most critical and practical alternative but also an axis of resources diplomacy in the mid to long term. At the same time, as spiraling high oil prices continue and with the further intensification of resources nationalism, urgent matters such as the development of alternative energy sources to oil resources and the transformation of the state-run energy company into large-scale globalized state-run oil companies should be addressed at the level of national strategy.
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