South Korea and Mongolia reached a principle agreement on the Comprehensive Economic Partnership Agreement (CEPA) on the 9th day, following President Lee Jae-myung's state visit to Mongolia. The breakthrough ended a 17-month deadlock caused by disagreements over market opening levels. The agreement activates a comprehensive economic cooperation framework spanning renewable energy, critical mineral supply chains, and distribution logistics.
The Ministry of Trade, Industry and Energy announced that both heads of state declared the principle conclusion of the South Korea-Mongolia CEPA negotiation in Ulaanbaatar, Mongolia. Negotiations had stalled for approximately 17 months due to disagreements on market opening levels. Prior to the summit, Trade Negotiation Headquarters Director Yeo Han-gu and Mongolian Minister of Economic Development Enkhbayar Jadamba reached consensus after three rounds of goods concession negotiations, according to the ministry.
Mongolia Eliminates Tariffs on Copper and Rare Earths
The agreement eliminates 2-5% import tariffs on Mongolian copper, molybdenum, and rare earths immediately upon implementation. This reduces procurement costs for Korean companies securing critical raw materials and strengthens supply chain stability.
In the distribution sector, tariffs on cosmetics and pharmaceuticals are eliminated immediately, while tariffs on ramen and seasoned seaweed are removed within five years. The Ministry of Trade, Industry and Energy signed a Distribution and Logistics Cooperation MOU with Mongolia's Ministry of Food, Agriculture and Light Industry and established a director-level regular consultative body called the Distribution and Logistics Policy Meeting to support Korean companies entering the market.
![South Korea-Mongolia distribution and logistics cooperation]()
Korean Companies Sign 21 Business MOUs Worth $7 Million
At the jointly hosted South Korea-Mongolia Business Forum, 21 memorandums of understanding were signed across critical minerals, consumer goods, and digital sectors. Nam Yang Dairy signed a K-food export cooperation MOU with Mongolian distributor Maximus for approximately 10 billion won over three years. KakaoBank completed an equity investment contract in Mongolia's digital bank M Bank, and Hanwha Investment & Securities exchanged an investment cooperation MOU with the Genghis Khan Sovereign Fund. A simultaneously held export consultation resulted in contracts worth approximately $7 million.
POSCO International Partners with NewCom on Renewable Energy Projects
The Ministry of Climate, Energy and Environment signed an Energy Transition Cooperation Memorandum of Understanding with Mongolia's Ministry of Energy and established a director-level joint committee. The cooperation focuses on transforming Mongolia's coal-centered heating structure to eco-friendly systems through solar and wind power development and power infrastructure expansion.
In the private sector, POSCO International formed a partnership with Mongolia's representative company NewCom to jointly invest in new renewable energy projects including onshore wind power. The companies will also pursue a high-efficiency clean heating project utilizing waste heat from cooling water at the Ulaanbaatar combined heat and power plant.
![South Korea-Mongolia energy transition cooperation]()
FAQ
What tariffs did Mongolia eliminate under the CEPA agreement?
Mongolia eliminated 2-5% import tariffs on copper, molybdenum, and rare earths immediately upon CEPA implementation. Tariffs on cosmetics and pharmaceuticals are removed immediately, while ramen and seasoned seaweed tariffs are eliminated within five years.
What business deals were signed at the South Korea-Mongolia Business Forum?
Twenty-one memorandums of understanding were signed across critical minerals, consumer goods, and digital sectors. Nam Yang Dairy signed a 10 billion won K-food export MOU with Maximus, KakaoBank completed an equity investment in M Bank, and Hanwha Investment & Securities exchanged an investment cooperation MOU with the Genghis Khan Sovereign Fund. Export consultations resulted in approximately $7 million in contracts.
