Seoul and ADB to Pool Financing and Technology for Critical Minerals Extraction in Central Asia

South Korean President Lee Jae-myung and Asian Development Bank President Masato Kanda met in Seoul on September 14 and agreed to deepen cooperation on critical minerals supply chains, artificial intelligence, and energy. South Korea's Finance Minister Koo Yoon-cheol held separate discussions on financing mechanisms for Central Asia.

The meeting took place two days before South Korea's first-ever summit with five Central Asian states, scheduled for September 16. The sides discussed how to combine ADB financing with the technology and expertise of South Korean companies for projects in the region.

The foundation for cooperation was laid by a mechanism launched by the ADB at its annual meeting in Samarkand in May: the Critical Minerals-to-Manufacturing Financing Partnership Facility. The facility has two components. The first is a grant window for financing early-stage projects: feasibility studies, and environmental and social assessments. The second component provides financing for later-stage development.

The September 16 summit will be the first meeting of this format between Seoul and all five Central Asian countries simultaneously.