South Korean President Lee Jae‑myung and Mongolian President Ukhnaa Khurelsukh agreed in principle to a Comprehensive Economic Partnership Agreement during a summit in Ulaanbaatar [1].
The agreement seeks to secure reliable sources of critical minerals for South Korean industry while diversifying Mongolia's economic ties. This cooperation is vital for the stability of high-tech supply chains, particularly for sectors relying on rare-earth elements and copper.
The meeting on July 9, 2026 [2], marked the first state visit by a South Korean leader to Mongolia in 15 years [3]. During the discussions, the two leaders focused on establishing a framework for a Comprehensive Economic Partnership Agreement (CEPA) to lower trade barriers and encourage investment [1].
Central to the summit was the commitment to cooperate on critical-mineral supply chains [1]. South Korea's industrial base requires a steady flow of raw materials to maintain its competitive edge in electronics and battery technology. By partnering with Mongolia, Seoul aims to reduce its reliance on a limited number of global suppliers.
The two nations set an ambitious target to increase bilateral trade to approximately $1 billion by 2030 [4]. This goal is tied to the broader strategic partnership intended to modernize Mongolian infrastructure, and expand South Korean exports of technology and services.
Both leaders said the agreement would open a “golden era” of economic cooperation [1]. The partnership focuses on mutual growth through the exchange of technical expertise, and the development of sustainable mining practices in the Mongolian highlands.
President Lee said the visit was intended to strengthen the strategic bond between the two nations [3]. President Khurelsukh said the collaboration would help Mongolia diversify its economic dependencies and attract high-quality foreign investment [1].
“The agreement seeks to secure reliable sources of critical minerals for South Korean industry.”
This strategic pivot reflects South Korea's broader effort to mitigate supply chain vulnerabilities by securing direct access to raw materials. By formalizing ties with Mongolia, Seoul is hedging against geopolitical volatility that often disrupts the flow of critical minerals essential for semiconductor and electric vehicle production.
