Director Bongchul Kim Contributes Op-Ed to Energy Economy: “A New Central Asia Is Emerging”

The contemporary geopolitical landscape of Central Asia is evolving beyond a simple arena of great-power competition and moving in new directions. While China’s Belt and Road Initiative (BRI) and Russia’s traditional security influence remain important factors, Central Asian states are actively seeking diverse forms of cooperation to secure greater strategic autonomy. In this context, Korea’s engagement stands out because it is not based on military power or debt-driven development, but rather on the export of “soft governance.” Initiatives such as the New Northern Policy and the K-Silk Road Strategy represent more than diplomatic gestures; they reflect efforts to establish technology-based partnerships for urban and industrial transformation.

Korea is not merely a provider of hardware to Central Asian countries but also a proposer of development models and alternative pathways for growth. In recent years, Korea’s strategy toward Central Asia has shifted from a resource diplomacy-centered approach to a “Technology-Plus” framework. This future-oriented strategy combines resource security with digital infrastructure development and utilizes Official Development Assistance (ODA) as a key policy instrument. Korea’s ODA budget, amounting to approximately USD 2.46 billion in 2026, provides the financial foundation for this approach. Quasi-governmental organizations such as the Korea Overseas Infrastructure & Urban Development Corporation (KIND) play a bridging role between government policy and private-sector participation. Through government-to-government (G2G) cooperation, Korea is embedding its technological standards in partner countries from the initial stages of smart-city planning, focusing not merely on infrastructure construction but on long-term institutional and technological integration.

Kazakhstan serves as a key hub of Korea’s strategy in Central Asia, with the Alatau Smart City project near Almaty representing a prominent example. Covering approximately 88,000 hectares, the project is not simply an urban development initiative but is designed as a strategic node within the Middle Corridor logistics network. Through the introduction of Intelligent Transport Systems (ITS) and digital administrative platforms, Korea is supporting Kazakhstan’s transformation from a landlocked state into a land-linked state. This cooperation has deepened further through high-level discussions on logistics integration in 2026, and the smart city is increasingly developing into a critical node within Eurasian supply chains.

Cooperation with Uzbekistan, in contrast to the logistics-oriented partnership with Kazakhstan, focuses more heavily on human-centered urban development. The New Tashkent project is a large-scale national initiative encompassing healthcare, energy, and urban infrastructure. Korea has emerged as a key partner in the development of medical smart-city systems and environmentally sustainable energy infrastructure. Investments of approximately USD 5 billion in medical smart-city development, along with Hyundai Rotem’s high-speed rail projects, demonstrate how industrial and technological cooperation can be strengthened simultaneously. The introduction of green hydrogen and eco-friendly heating systems is accelerating the transition toward low-carbon urban development, reflecting a strategy that seeks both sustainability and improved quality of life.

More specialized forms of cooperation are emerging in Turkmenistan and Kyrgyzstan. Turkmenistan’s Arkadag Smart City has become a symbolic success story for Korean technology after receiving international exhibition awards, providing an important gateway into an otherwise relatively closed market. In Kyrgyzstan, the Smart Village model is being adapted to the needs of rural and mountainous communities. Approximately USD 500 million in financing through the Economic Development Cooperation Fund (EDCF) supports these initiatives, demonstrating the flexibility of Korean technology and development models not only in major urban centers but also at the regional and local levels.

Nevertheless, Korea’s strategy toward Central Asia faces several challenges. The most significant obstacle is competition from China’s Digital Silk Road, as comparatively low-cost Chinese technologies have already become widely established throughout the region. Institutional limitations within Central Asian countries also pose risks to the long-term sustainability of smart-city projects. Without adequate legal and regulatory frameworks governing data management, personal information protection, and digital governance, smart cities may remain isolated technological achievements rather than integrated development models. Korea must therefore move beyond the simple provision of technology and adopt a more comprehensive approach that includes legal and institutional capacity-building, as well as human resource development, in order to strengthen long-term partnerships.

In September of this year, leaders from Korea and the Central Asian states are expected to gather in Seoul for the Korea–Central Asia Summit to discuss future cooperation strategies. The summit aims to strengthen the K-Silk Road cooperation model across a wide range of sectors, including critical mineral supply chains, energy, and infrastructure. This autumn will therefore provide an important opportunity for Korea to engage with a rapidly changing Central Asia and to present a concrete vision for future cooperation based on a Korean model that integrates technology, institutions, and shared values. Although geopolitical competition and institutional constraints remain significant challenges, the foundations of Korea-led digital cooperation have already been established. These foundations may serve as an important basis for helping Central Asia secure a more autonomous position within the twenty-first-century global economy. It is important to recognize that a new Central Asia is emerging and that it is increasingly becoming a significant partner for Korea.