Agreements Worth $2.45 Billion: Baiterek Holding Expands Investment Cooperation with Korea

Baiterek Holding took part in the 14th meeting of the Kazakhstan–Korea Business Council in Seoul, held as part of the state visit of President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the Republic of Korea. The Holding’s delegation was headed by Chairman of the Management Board Rustam Karagoishin. The main focus was on attracting Korean investment, expanding financing instruments and implementing joint projects in Kazakhstan.

The event featured a plan for developing the master plan for Alatau Smart City, as well as projects to establish the K-Park ethnocultural complex, open a branch of the Korea Advanced Institute of Science and Technology (KAIST), and introduce a management system for manned and unmanned air traffic. Opportunities for Korean participation in the development of Alatau City were also discussed at a separate meeting with the management of the state-owned corporation KIND, attended by Rustam Karagoishin.

The Holding’s group of companies was represented at the events by Marat Yelibayev, Chairman of the Management Board of the Development Bank of Kazakhstan; Didar Karimssakov, Chairman of the Management Board of Qazaqstan Investment Corporation; and Farhat Sarsekeyev, Chairman of the Management Board of Damu Entrepreneurship Development Fund.

Three key documents were signed as part of the forum.

The first document is a strategic agreement between Qazaqstan Investment Corporation and KIND on the establishment of a joint Kazakhstan–Korea Investment Fund. The document was signed on the Kazakh side by Rustam Karagoishin and on the Korean side by Kim Bok-hwan, President and CEO of KIND. At the initial stage, the fund may amount to USD 200 million with equal participation by the parties, and subsequently reach USD 1 billion. The funds are planned to be allocated to projects in infrastructure, logistics, energy and urban development, including Alatau City.

The Development Bank of Kazakhstan and K-SURE, Korea’s state export credit agency, exchanged a joint declaration providing for insurance coverage of up to EUR 200 million. The first project under this mechanism will be the ferroalloy production plant of Mineral Product International LLP in Ekibastuz, for which financing of EUR 48 million is being considered. The project will create a new export-oriented production facility with an annual capacity of up to 160,000 tonnes.

Another document provides for the opening of a credit line by the Development Bank of Kazakhstan for PGU Turkestan LLP. Financing of approximately USD 631 million is planned for the construction of a 1,000 MW combined-cycle power plant in Turkestan Region. The project is being implemented with the participation of a consortium of Doosan Enerbility and Integra Construction KZ.

“The documents signed represent a practical continuation of the agreements reached at the highest level and of our consistent work with Korean partners. They provide access to long-term capital, insurance instruments and advanced technologies for implementing major projects in Kazakhstan. Our common task now is to promptly structure the financing and bring each initiative to a tangible result,” said Rustam Karagoishin.

In addition to the key agreements, the Holding’s group of companies also worked on documents related to the development of venture financing, localization of automotive component production and support for small and medium-sized businesses. These include QIC’s participation in an international venture capital fund, financing for a new Seoyon E-Hwa production facility in Kostanay, and expanded cooperation between Damu Fund and Korean banks and development institutions.

Following the Business Council meeting, Rustam Karagoishin held a meeting with the management of Korea Venture Investment Corporation (KVIC), a state-owned investment organization that manages the Korean fund. The parties discussed the possibility of expanding the Global Fund international program to Kazakhstan and Central Asia, as well as KVIC’s participation in venture funds focused on the region. Qazaqstan Investment Corporation is ready to act as a local partner and provide Korean investors with access to Kazakhstan’s venture capital ecosystem.

In total, nine commercial documents were developed as part of the state visit through the Baiterek Holding group of companies, six of which have a financial value. The aggregate amount of financing and investment commitments is approximately USD 2.45 billion equivalent. The agreements reached provide a foundation for implementing new projects, attracting technologies and creating jobs in Kazakhstan.

The business program of the Baiterek Holding delegation in Seoul will continue tomorrow. The agenda includes participation in the C5+Korea Business Forum, as well as negotiations with the Export-Import Bank of Korea (KEXIM) and the Korea SMEs and Startups Agency (KOSI). The main focus will be on new mechanisms for financing investment projects and expanding support for entrepreneurship.