South Korea's Long Game in Uzbekistan: From Practical Cars to AI-Powered Futures

January
05
2026
A Partnership Built for the Long Haul
On December 10, 2025, Uzbekistan's Deputy Prime Minister Jamshid Khodjayev stood at Masan Port in Changwon, South Korea, watching sleek high-speed trains being loaded onto cargo ships bound for Tashkent. Capable of traveling 160 miles per hour through desert sandstorms, these Hyundai Rotem trains represent the latest chapter in a relationship that began more than three decades ago with something far more modest: the Daewoo Tico, a boxy subcompact car that became ubiquitous on Uzbek roads in the 1990s.
The contrast between those first Ticos and today's high-speed rail cars tells a larger story about South Korea's distinctive approach to Central Asia. While other powers have surged into the region with flashy mega-deals or retreated when conditions changed, South Korea has maintained a steady, pragmatic presence in Uzbekistan — one that has evolved from basic manufacturing to cutting-edge technology transfer. As Russia's attention has shifted to its war in Ukraine and competition intensifies among China, Gulf states, and Western powers for influence in Central Asia, South Korea's three-decade track record offers a case study in sustained economic diplomacy.
The question is why this partnership has endured when so many others have faltered, and what it reveals about Uzbekistan's approach to balancing relationships with multiple powers.
Foundation: Pragmatism Meets Historical Ties
South Korea's engagement with Uzbekistan began with practical advantages that few other countries possessed. When Uzbekistan gained independence in late 1991, South Korea moved quickly, establishing diplomatic relations by January 1992 — the eighth country to formally recognize the new state. By late that year, Daewoo had already formed UzDaewooAvto, a joint venture with state company Uzavtosanoat, to manufacture cars in the eastern town of Asaka.
The timing reflected both opportunity and obligation. Some 250,000 ethnic Koreans lived in Uzbekistan in 1991, descendants of families forcibly relocated by Stalin from the Soviet Far East to Central Asia in the late 1930s. While most other deported groups — ethnic Germans, peoples from the North Caucasians — eventually left Central Asia after the USSR's collapse, the Korean community remained substantial, numbering approximately 174,200 by 2021 according to Uzbekistan's State Statistics Committee. This diaspora provided cultural familiarity and linguistic bridges that smoothed early business relationships.
But sentiment alone doesn't explain three decades of sustained engagement. South Korea approached Uzbekistan with clear economic interests: access to natural resources, particularly uranium for its 26 nuclear reactors that supply 30 percent of the country's electricity, and opportunities in a market that Western companies often overlooked. The relationship was transactional from the start, which paradoxically may have contributed to its longevity — expectations were clear, and both sides benefited.
Building Industrial Foundations: Energy and Infrastructure
South Korean companies followed Daewoo's automotive success by moving into Uzbekistan's energy sector, establishing partnerships that would anchor the relationship for decades.
The Korean Gas Corporation (KOGAS) signed a pivotal agreement in February 2008 with state company Uzbekneftegaz, forming a 50-50 partnership to develop the Surgil gas field and construct the Ustyurt Gas Chemical Complex in western Uzbekistan. The deal was sealed during Uzbek President Islam Karimov's visit to attend the inauguration of South Korean President Lee Myung-bak—a sign of how closely economic ties had become intertwined with diplomatic relations. Later that year, Korea National Oil Corporation (KNOC) secured agreements to explore for oil and gas in eastern Uzbekistan's Namangan-Tergachi and Chust-Pop regions, and later in dried-out areas of the Aral Sea in partnership with Uzbekneftegaz and China National Petroleum Corporation.
These energy deals created a foundation for deeper involvement in Uzbekistan's infrastructure. Hyundai Engineering partnered with Russia's Lukoil to build the Kandym gas-processing plant in Bukhara Province, commissioned in 2018 with capacity to handle 8 billion cubic meters annually. SK Engineering & Construction won contracts to modernize the Bukhara oil refinery in 2019, upgrading it to produce Euro-5 quality gasoline — a critical improvement as Uzbekistan grapples with severe air pollution and phases out low-quality fuel.
Power generation became another focus area. Daewoo International and Hyundai Engineering & Construction modernized the Andijan and Tupolang hydropower plants in 2015, installing new units that boosted combined capacity to 150 megawatts. The companies then partnered with Uzbekenergo to modernize the 900-megawatt Talimarjan thermal power plant and install new capacity at the Angren plant. In 2021, SK Engineering & Construction secured the tender to modernize the Mubarek thermal power plant, increasing capacity from 120 to 300 megawatts.
What distinguishes these projects is their focus on upgrading existing infrastructure rather than building vanity projects. South Korean companies have concentrated on making Uzbekistan's energy and power systems more efficient and environmentally sound — less glamorous than new cities or mega-dams, but essential to the country's development needs.
The Technology Leap: Positioning for the Future
The high-speed trains arriving in Uzbekistan represent a strategic shift in the partnership. South Korea is no longer just helping Uzbekistan modernize Soviet-era infrastructure; it's enabling the country to leapfrog into advanced technologies that will shape its economic future.
The Hyundai Rotem trains, designed with dust-resistant systems to withstand extreme heat and sandstorms, will first serve the Tashkent-Urgench-Khiva route, cutting travel time to seven hours and better connecting the capital with western regions. The route will be named after Jalaladdin Manguberdi, the last Khwarezmian ruler who resisted the Mongol invasions — a symbolic choice linking technological progress with historical pride. As more trains arrive through 2027, additional lines will connect Tashkent and Bukhara, transforming domestic connectivity.
Aviation infrastructure is another frontier. Incheon International Airport Corporation, alongside Saudi and Japanese partners, is participating in construction of Tashkent's new international airport, with a first-phase cost of $2.5 billion. In April 2025, Incheon won the tender to modernize Urgench airport in western Uzbekistan, extending South Korean expertise across the country's aviation network.
Perhaps most striking is South Korea's push into emerging technologies. In December 2025, during Deputy Prime Minister Khodjayev's visit to Seoul, a memorandum of understanding was signed for South Korean company ROBOTIS to assemble humanoid robots in Uzbekistan. Uzbek pharmaceutical companies signed another agreement with South Korea's National Institute for Bioprocessing Research and Training to boost innovation in biotechnology and train Uzbek specialists. An Uzbek delegation attending a procurement conference in Seoul reached agreements for South Korean assistance in digitalization and introducing artificial intelligence into public procurement systems — details of which were discussed between Uzbekistan's deputy Economic and Finance Minister and the South Korean ambassador in October.
These aren't isolated deals. They represent a coordinated strategy to position Uzbekistan as a technology hub and manufacturing center for advanced industries, with South Korea serving as the principal partner and knowledge transfer agent.
The Human Connection: Labor and Diaspora
Behind the billions in contracts and infrastructure projects lies a human dimension that reinforces economic ties. In December 2012, Uzbekistan and South Korea signed an agreement allowing Uzbek laborers to work in South Korea. By July 2025, approximately 98,457 Uzbeks were living in South Korea, with reports suggesting the potential for up to 100,000 workers on temporary visas. Remittances from South Korea to Uzbekistan surged 56 percent in 2024, totaling $534 million — a significant flow of capital into Uzbek households.
This labor migration has created challenges, including some workers leaving approved positions for other employment and overstaying visas, leading to recent quota reductions and a voluntary exit program for those without legal status. Yet a December 2025 agreement allowing select Uzbek laborers to work at KIA Auto service centers demonstrates how both countries are trying to structure migration to benefit Uzbekistan's development — workers will gain skills to support the domestic automotive sector when they return home.
The ethnic Korean community in Uzbekistan, while smaller than in 1991, continues to serve as a cultural bridge. These historical ties provide familiarity and trust that purely commercial relationships often lack, even as the partnership has evolved far beyond diaspora connections.
What Makes This Partnership Different?
South Korea's sustained engagement with Uzbekistan stands in contrast to other powers' approaches to Central Asia. China has pursued massive infrastructure investments through the Belt and Road Initiative, often involving large loans and Chinese contractors. Gulf states have recently entered with major financial commitments focused on specific sectors. Russia's historical dominance has waned as Moscow's attention has turned to its war in Ukraine. Western countries and companies have increased interest but often lack the long-term commitment and cultural proximity that South Korea offers.
Several factors explain South Korea's staying power. First, the partnership has been consistently reciprocal—Uzbekistan provides resources and market access while South Korea brings technology, investment, and employment opportunities. Neither side has sought to dominate the relationship politically. Second, South Korean companies have proven adaptable, evolving from basic manufacturing in the 1990s to sophisticated technology transfer today, matching Uzbekistan's development trajectory. Third, the relationship operates at multiple levels—government-to-government, business-to-business, and people-to-people—creating resilience when any single channel faces obstacles.
Most importantly, South Korea has avoided the perception of strategic competition that accompanies Chinese or Russian engagement, or the conditional assistance often associated with Western partnerships. For Uzbekistan, this makes South Korea an attractive partner as the country seeks to balance relationships with multiple powers while maintaining sovereignty and pursuing rapid development.
Looking Ahead: A Model for Multi-Alignment?
As Uzbekistan pursues what observers call a "multi-vector" foreign policy — engaging simultaneously with Russia, China, the United States, Europe, and Gulf states — its partnership with South Korea offers a template for how mid-sized powers can build influence in Central Asia without triggering great power competition.
The third meeting of parliamentary leaders from Central Asian countries and South Korea, held in Tashkent in December 2025, suggests this model may be expanding regionally. Discussions focused on economic cooperation, digital transformation, and industrial development — areas where South Korea has demonstrated expertise in Uzbekistan and could replicate across the region.
Questions remain about the partnership's future trajectory. Can South Korea maintain its position as competition for Uzbek contracts intensifies? Will the technology transfer agreements produce the innovation ecosystems both countries envision? How will labor migration evolve as Uzbekistan's economy develops and demand for overseas work potentially declines?
What's clear is that after more than three decades, the Uzbekistan-South Korea relationship has evolved from opportunistic early engagement into a strategic partnership that serves both countries' interests. From Tico cars to high-speed trains, from basic energy extraction to AI-powered government systems, the partnership has continuously adapted while maintaining its core pragmatism.
In a region where great powers compete for influence and partnerships often prove fleeting, South Korea's quiet consistency in Uzbekistan may offer the most valuable lesson: sustainable relationships are built not on grand gestures but on mutual benefit, technological collaboration, and patient investment in shared futures.
Bruce Pannier is a Senior Fellow at the Turan Research Center. Before joining the TRC, he was a correspondent covering Central Asia for RFE/RL for over 25 years. He previously wrote Central Asia in Focus and hosted the Majlis podcast.
January 5, 2026








































