Baiterek Holding Attracts Korean Investment to Projects in Kazakhstan

On September 14, in Seoul, a delegation from Baiterek Holding, headed by Chairman of the Management Board Rustam Karagoishin, began its business program as part of the state visit of President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the Republic of Korea. During the day, a series of meetings was held with the heads of leading financial, investment and industrial organizations in the country.

The Holding was also represented in the negotiations by the heads of its subsidiaries: Marat Yelibayev, Chairman of the Management Board of the Development Bank of Kazakhstan; Didar Karimssakov, Chairman of the Management Board of Qazaqstan Investment Corporation; Farhat Sarsekeyev, Chairman of the Management Board of Damu Entrepreneurship Development Fund; and others.

“Today, Baiterek Holding is consistently developing cooperation with Korea’s largest financial and investment institutions in order to attract long-term capital, advanced technologies and international expertise to Kazakhstan. Each meeting has a practical objective — to identify specific projects, select financing instruments and move toward implementation. The result of this work should be new production facilities and infrastructure projects, the development of technology companies and the creation of jobs. The Holding is ready to support investors at every stage, bringing together the capabilities of its subsidiaries,” said Rustam Karagoishin.

During the meeting with Shinhan Financial Group, one of Korea’s largest financial groups, the parties discussed credit lines for the Development Bank of Kazakhstan, participation in syndicated and project financing, as well as support for small and medium-sized businesses through the instruments of Damu Fund. The potential volume of cooperation may reach USD 500 million.

The negotiations with K-SURE, Korea’s state export credit agency, focused on insurance support for projects involving the supply of Korean equipment and technologies. The first potential joint project under consideration is the ferroalloy production plant of Mineral Product International LLP in Ekibastuz. The project is being considered for financing of EUR 48 million with K-SURE coverage under an approved limit of up to EUR 200 million. The plant will have an annual production capacity of 160,000 tonnes, including 80,000 tonnes at the first stage.

At a meeting with Mirae Asset, one of Korea’s largest independent investment and financial groups, the parties discussed Qazaqstan Investment Corporation’s participation in SparkLabs Mirae Silkroad Fund I, L.P., a venture capital fund investing in promising technology companies. The target size of the fund is USD 65 million, with QIC’s potential participation as an anchor investor of up to USD 10 million. Priority areas include artificial intelligence, cloud infrastructure and financial technologies, including Kazakh companies targeting the Korean and US markets.

A separate item on the agenda of the negotiations with Kim Bok-hwan, President and CEO of KIND, was the establishment of a joint Kazakhstan–Korea investment fund. KIND is a state-owned corporation supporting overseas infrastructure and urban development projects. At the initial stage, the fund could amount to USD 200 million, with equal participation by KIND and QIC, and could subsequently reach USD 1 billion. Priority areas have been identified as transport and digital infrastructure, logistics, urban development and renewable energy. One of the potential locations under consideration is Alatau City, a new city in Almaty Region being developed as a modern business, innovation and logistics hub. The Korean side was presented with a portfolio of potential projects with a total value of approximately USD 7 billion.

To conclude the program, the delegation visited KIA 360, the flagship space of one of Korea’s largest automakers, where it familiarized itself with the company’s technological solutions and model range. The visit continued the substantive dialogue on the development of the existing automotive partnership in Kazakhstan. The key project of this cooperation is the Kia Qazaqstan plant in Kostanay, with an investment volume of USD 310 million, designed to produce up to 70,000 vehicles per year and create 1,500 jobs. The Industrial Development Fund is also considering financing equivalent to approximately USD 27 million for the production of Seoyon E-Hwa automotive components, with a capacity of up to 40,800 sets per year.

The meetings held served as preparations for the 14th meeting of the Kazakhstan–Korea Business Council, which will take place on September 15 in Seoul with the participation of the Head of State. New investment projects will be presented at the event, and commercial documents will be exchanged between companies from the two countries. The agreements reached lay the groundwork for moving toward financing specific projects in Kazakhstan’s industrial, infrastructure and technology sectors.