AGP Executive Report

Korea–Mongolia “Golden Age” push: President Lee Jae Myung met Mongolia’s PM Nyam-Osoryn Uchral and Parliament Speaker Sandag Byambatsogt, urging fast follow-through on summit deals covering critical minerals, defense industry, and economic exchanges—with Mongolia aiming to add value by processing and producing minerals using Korean technology. CEPA & supply-chain lock-in: Seoul and Ulaanbaatar reached an agreement in principle on a Comprehensive Economic Partnership Agreement, targeting tariff cuts on key minerals (including copper and rare earths) and strengthening cooperation via the Rare Metal Cooperation Center to stabilize supply chains. Logistics and distribution coordination: A new intergovernmental logistics council and a distribution-and-logistics MOU aim to streamline certification and customs clearance for Korean firms selling into Mongolia. Energy transition projects: POSCO International signed a $100m energy partnership with Newcom for a district heating project using heat-pump tech to recycle waste heat, aligning with Mongolia’s push to cut winter air pollution. Finance for trade: Korea Eximbank agreed a $30m on-lending facility with Mongolia’s Trade and Development Bank to support exports of Korean consumer goods. Retail and food exports: E-mart opened Mongolia’s first standalone No Brand store, while Namyang Dairy secured a 10 billion won export expansion deal for K-food products via Maximus Distribution. Digital banking investment: KakaoBank’s CEO joined the delegation and signed a term sheet to invest in Mongolia’s digital bank M Bank, aiming to broaden access to finance.

Korea–Mongolia Deal Push: South Korea and Mongolia signed 21 cooperation documents and reached an agreement in principle on a Comprehensive Economic Partnership Agreement (CEPA), aiming to lift bilateral trade to $1B annually by 2030, with tariff cuts on Mongolian minerals and phased tariff removal for Korean consumer goods. Critical Minerals Supply Chain: President Lee Jae Myung urged a “golden age” built on resilient critical-mineral value chains beyond mining, while also pitching the “Mongtan” cooperation model that blends Korean retail/logistics know-how with Mongolian investment and operations. Energy Transition in the Gobi: Mongolia’s government approved renewable energy auctions for solar and wind projects with battery storage across multiple aimags, targeting power shortages and rising mining demand; South Korea also signed an energy-transition and renewables MOU with Mongolia. Retail Expansion: BGF Retail’s CU surpassed 600 stores in Mongolia, opening a “Green Station” outlet with solar and EV charging—an expansion into 16 regions beyond Ulaanbaatar. Regional Fuel Shock: Russia banned diesel exports until July 31 after Ukrainian strikes hit refineries; shipments under pre-existing deals, including one with Mongolia, are exempt. Industrial AI Link-Up: An industrial AI training program for Belt and Road partners concluded in Shanghai, with Mongolia among participants.

Korea–Mongolia Trade & Critical Minerals: South Korea’s President Lee Jae-myung and Mongolia’s President Ukhnaagiin Khürelsükh opened a “Golden Age” push for ties, targeting $1 billion in bilateral trade by 2030 and calling for deeper cooperation across the critical minerals value chain, including supply-chain links beyond mining. Business Forum: Lee will attend a Korea–Mongolia Business Forum in Ulaanbaatar with about 300 officials and business leaders, with heavy participation from mining, retail, consumer goods and digital firms. Retail Expansion: BGF Retail’s CU convenience store chain hit 600 stores in Mongolia, expanding beyond Ulaanbaatar into 16 regions; its 600th outlet in Bulgan features a “Green Station” model with solar and EV charging. Fuel & Logistics Watch: Russia introduced a diesel export ban until July 31 after Ukrainian drone strikes hit refineries, while exemptions may apply to pre-existing deals such as Mongolia’s. Mongolia Skills & Education: Mongolia’s government highlighted “Liberate” initiatives and education reforms in Ulaanbaatar, including plans to reduce overcrowded classes and build specialized high schools. Energy/Tech Infrastructure: A new procurement-and-skills angle is being pushed in construction financing, aiming to boost local employment and training capacity.

Energy Security: Russia has banned diesel exports until July 31 after Ukrainian drone strikes hit refineries, triggering fuel shortages and long queues; Mongolia is noted as an exemption under pre-existing agreements. Mongolia-India Ties: Mongolia’s ambassador presented credentials to India’s President, with both sides pointing to the construction of Mongolia’s first oil refinery as a key pillar of the strategic partnership. Mining & Power Projects: Mongolia’s government marked its first 100 days, highlighting progress on Oyu Tolgoi negotiations, new coal operations at Borteeg, and steps toward an IPO for Erdenes Tavantolgoi. Education Capacity Push (UB): Ulaanbaatar is reviewing district-level measures to ease overcrowding—splitting large classes, revising school catchment areas, building specialized high schools, and expanding hybrid learning. Defense & Industry Cooperation: South Korea’s President Lee Jae-myung used the NATO Defense Industry Forum to call for deeper Korea-NATO defense industry partnership, including joint weapons development and procurement frameworks. Agritech Innovation: A laser weeding robot in China is set for mass production by year-end, aiming to cut herbicide use by targeting weeds with high-energy lasers.

Education Capacity Crunch: Ulaanbaatar is rolling out district-by-district reforms to ease overcrowding, including splitting classes over 46 students, revising school catchment areas, building primary schools inside residential complexes, and setting up specialized high schools for 2026-2027. Mining & Power Diplomacy: Mongolia’s government marked its first 100 days with “100 Liberations in 100 Days,” highlighting Oyu Tolgoi negotiation gains, new coal deposit operations, and steps toward an Erdenes Tavantolgoi IPO. Energy Security Push: Reports say India is funding Mongolia’s first oil refinery (over $1.2B) to cut near-total dependence on Russian and Chinese refined fuel flows. Trade & Regional Links: Mongolia’s ambassadors to India and Vietnam presented credentials and reaffirmed strategic partnerships, with India pointing to joint progress including the oil refinery. Agritech Leap: A laser weed-cutting robot is set for mass production in China, aiming to reduce herbicide use—an efficiency signal for regional agriculture. Logistics Spotlight: International media toured Xinjiang’s land ports and freight corridors, underscoring China-Europe container rail readiness and industrial momentum. Defense Industry Angle: South Korea’s President Lee pledged $100M support for Ukraine and is pushing NATO defense-industry cooperation—relevant to regional procurement and supply chains. Corruption Watch: China’s death sentence for a former Nanjing official over $325M in bribes keeps anti-graft enforcement in focus.

Energy Security for Mongolia: India is funding Mongolia’s first oil refinery (over $1.2B), aiming to cut Ulaanbaatar’s heavy dependence on refined fuel imports from Russia and China. Defense Industry & Diplomacy: South Korea’s President Lee Jae-myung arrived in Ankara for the NATO summit and is set to push defense-industry cooperation, with a follow-on state visit to Mongolia—an angle that matters for regional supply chains and industrial partnerships. Mongolia Fuel Stability: Mongolia’s Industry and Mineral Resources ministry says Naadam will keep AI-92 and diesel prices stable, with diesel import plans from South Korea and procurement arrangements with PetroChina and China Oil. Trade & Customs: The Eurasian Economic Commission and Mongolia discussed implementation of the Temporary Trade Agreement from July 22, with reduced or eliminated duties for 367 product items. Mining & Production: Silver Elephant has leased the Ulaan Ovoo coal mine to a major mining/industrial group, while Azzuro Resources reported copper production growth in Mongolia. China Tech & Markets: Nvidia shares fell after reports that DeepSeek is developing its own AI inference chip—another reminder of how fast semiconductor supply chains are shifting. Governance Watch: China sentenced a former Nanjing official to death over $325M in bribes, underscoring ongoing anti-corruption pressure across major sectors.

Mongolia Energy Security: Mongolia’s Industry and Mineral Resources ministry says there’s no fuel shortage for Naadam—AI-92 and diesel prices will stay stable, with diesel imports already being fulfilled via South Korea and supply logistics confirmed. Mining & Industry Deals: Silver Elephant Mining’s Mongolian unit has leased the Ulaan Ovoo coal mine to a major local conglomerate, with royalties per tonne and plans to blend low-ash thermal coal for steel, cement and power customers. Coal-to-Value Push: Prime Minister N. Uchral inspected Baganuur’s coal-pyrolysis plant, aiming to produce “blue coal” next fall and cut reliance on imported processed fuel. Trade Integration: The Eurasian Economic Commission and Mongolia discussed implementation of the Temporary Trade Agreement, set to cut or remove customs duties on 367 items from July 22. Diplomacy with Industry Links: South Korea’s President Lee Jae-myung departed for the NATO summit in Türkiye, with a defense-industry forum on the agenda before a state visit to Mongolia. Mongolia–Vietnam Ties: Mongolia’s ambassador presented credentials in Vietnam, highlighting digital transition and cooperation under a comprehensive partnership. Corruption Watch (Regional): China sentenced a former Nanjing official to death over bribes worth over $325m, underscoring ongoing enforcement risks for cross-border business.

Energy & Industry: Prime Minister N. Uchral inspected Baganuur’s new coal-pyrolysis plant, pushing “blue coal” output to cut Mongolia’s reliance on imported fuel and support phased industrial development toward 2030. Mining Deals: Silver Elephant Mining’s Mongolian unit signed a lease for its Ulaan Ovoo coal mine, with royalties starting at $2/ton for two years and rising to $3/ton from 2028, targeting blending thermal coal with higher-rank coking coal for customers in China and Mongolia. Power Systems: Huawei Digital Power highlighted grid-forming PV-BESS as Europe’s renewables penetration rises, signaling a shift toward hybrid systems that can support grid stability. Diplomacy for Trade: Mongolia’s FM Battsetseg Batmunkh held talks with Guatemala’s FM Carlos Ramiro Martinez, marking a new chapter after 20 years of ties and aiming to expand cooperation under Mongolia’s “third neighbor” policy. ICT & Culture: Unitel Group launched “Urtuu” Immersive Experience in Ulaanbaatar, Mongolia’s first large immersive exhibition on the evolution of human communication. Business Climate: Mongolia’s Great State Khural approved a draft law on economic freedom, aiming to reduce government intervention, digitize permits, and strengthen investor dispute resolution. Construction/Urban Services: Mongolia’s president praised a China-built central wastewater treatment plant in Ulaanbaatar as a key strategic partnership project. Mining Exploration: Azzuro Resources reported promising copper-gold results at its Ulaan Unag project, including high-grade intersections in drilling. Naadam Culture: Preparations for the National Great Naadam Festival are over 80% complete, with 14 major cultural and arts events planned for locals and foreign visitors.

Immersive Tech & Culture: Unitel Group opened “Urtuu” in Ulaanbaatar, Mongolia’s first large immersive digital exhibition, using storytelling to trace the evolution of human communication and the country’s heritage. Mining & Production: Azzuro Resources says drilling at its Ulaan Unag copper-gold project found copper sulfide ore with results above forecasts, including a 21.45m intercept grading 1.70% copper plus gold and silver. Finance for Industry: ADB and Golomt Bank signed a $64m sustainable finance deal to expand lending to MSMEs, including women-owned firms, with support for energy efficiency, eco-tourism, and waste management. Energy & Infrastructure Diplomacy: Mongolia’s president praised a China-built central wastewater treatment plant in Ulaanbaatar, highlighting it as a partnership symbol and noting Chinese standards and technology. Policy for Investment Climate: Mongolia’s parliament approved a draft Law on Economic Freedom aimed at reducing government intervention, digitizing permits, and improving investor dispute handling via international arbitration. Logistics Equipment Demand: Kalmar reported new orders for electric reach stackers, including machines bound for Mongolia, signaling faster electrification of heavy cargo handling in the region. Talent & Skills Mobility: A Korea Times report highlights why a Mongolian student programmer is leaving Korea for China, pointing to visa hurdles and limited career growth for foreign specialists. Trade & Regional Links: South Korea’s President Lee Jae-myung plans a NATO summit trip followed by a state visit to Mongolia, with a Korea-Mongolia business forum and talks tied to defense exports and critical minerals.

Sustainable Finance for MSMEs: The Asian Development Bank and Golomt Bank signed a $64m loan to expand sustainable lending to micro, small and medium enterprises in Mongolia, including women-owned businesses, with support for energy efficiency, eco-tourism and waste management. Energy & Infrastructure: Mongolia’s President praised a China-built Ulaanbaatar Central Sewage Treatment Plant, now operational, highlighting Chinese standards and technology as a key partnership project. Logistics Electrification: Kalmar says it has secured new orders for 45-ton electric reach stackers, including machines bound for Mongolia—another sign of electrified cargo-handling demand in the region. Bilateral Trade & Transport Talks: Mongolia met Russian officials to discuss expanding economic ties, transport and logistics, and to push joint infrastructure projects across the Eurasian network. Regional Security Diplomacy: South Korea’s President Lee Jae-myung plans to attend the NATO summit in Ankara and then visit Mongolia, with a focus on defense industry cooperation and business forums. Cross-border Fuel Pressure: Russia’s Zabaykalsky region is seeing ads offering vehicle refueling in China amid a local gasoline shortage and strict sales limits. Industry Talent & Tech Mobility: A Mongolian computer engineering student in Korea is gaining research recognition but considering a move to China for further study.

Infrastructure & Water Security: Mongolian President Ukhnaa Khurelsukh praised the China-built Ulaanbaatar Central Sewage Treatment Plant, inspected on June 30; the facility uses Chinese standards and started operations June 15, framed as a key symbol of the strategic partnership. Sustainable Finance for SMEs: ADB and Golomt Bank signed a $64m loan to expand sustainable lending to micro, small and medium enterprises, including women-owned businesses, with support for energy efficiency, eco-tourism and waste management. Regional Trade & Corridors: Mongolia and the EAEU agreed an interim trade pact set to take effect July 22, with talks also pushing road transport, energy and petroleum cooperation; separately, Mongolia-Russia-China held a trilateral deputy-level meeting in Ulaanbaatar on logistics, energy infrastructure and the economic corridor program. Energy & Power Links: Inner Mongolia’s State Grid completed full township coverage by connecting Qiqian township via a new 10-kV line, while Russia-China tourism flows rose after visa-free steps and direct-flight talks target regions like Kamchatka and Altai. Defense & Business Diplomacy: South Korea’s President Lee Jae-myung plans to attend the NATO summit in Ankara (July 7–8) and then visit Mongolia (July 9–11), with a Korea-Mongolia Business Forum and defense-industry cooperation on the agenda. Industry Equipment Demand: Kalmar says it secured four new orders for 45-ton electric reach stackers, including machines destined for Mongolia, signaling faster electrification of heavy logistics equipment.

Sustainable Finance Boost: ADB and Golomt Bank signed a $64m loan to expand sustainable lending to Mongolia’s micro, small and medium-sized enterprises, including women-owned businesses, with support for energy efficiency in industry and housing, eco-tourism and waste management. Climate Policy: Mongolia’s State Great Khural approved the country’s first framework Law on Climate Change, setting a legal base for emissions cuts, climate resilience, climate finance, carbon market rules, and reporting transparency. Regional Trade & Corridors: Mongolia-EAEU’s interim trade agreement is set to take effect July 22, with Altanbulag named as the main gateway; Mongolia, Russia and China also held a trilateral deputy foreign ministers meeting in Ulaanbaatar focused on rail/road transit, logistics, energy infrastructure and the economic corridor program. Energy & Infrastructure: Russia’s tourism push includes proposed direct flights from China to regions like Kamchatka and Altai, while Inner Mongolia’s State Grid extended power coverage to all townships via a new 10-kV line. Defense Diplomacy: South Korea’s President Lee Jae-myung will attend the NATO summit in Ankara (July 7-8) and then visit Mongolia (July 9-11), aiming to deepen defense industry cooperation and sign MOUs with Mongolia. Business Recognition: Golomt Bank received “Best Corporate Bank Mongolia 2026” from Global Banking & Finance Review Awards.

Sustainable Finance Boost: The Asian Development Bank and Golomt Bank signed a $64m loan to expand sustainable lending to Mongolia’s MSMEs, including women-owned firms, with funding aimed at energy efficiency, eco-tourism and waste management. Climate Policy: Mongolia’s State Great Khural approved the country’s first framework Law on Climate Change, setting rules for emissions cuts, climate resilience, climate finance and carbon-market reporting. Korea–Mongolia Dealmaking: South Korean President Lee Jae-myung will attend the NATO summit in Ankara (July 7–8) then visit Mongolia (July 9–11), with talks and business forum plans focused on deepening bilateral ties and signing agreements. Trade Corridor Push: Mongolia, Russia and China held a 7th trilateral deputy foreign-minister meeting in Ulaanbaatar, discussing the economic corridor program plus rail, road, transit logistics and energy infrastructure, including a Russia–China–Mongolia gas pipeline project. EAEU Trade Pact: Mongolia’s interim trade agreement with the Eurasian Economic Union is set to enter into force on July 22, with officials pointing to expanded cooperation in transport, energy and petroleum products. Energy & Power Links: Russia’s deputy foreign minister met Mongolia’s deputy prime minister to discuss expanding economic, trade, transport and logistics cooperation and joint infrastructure projects. Industry Recognition: Golomt Bank was named “Best Corporate Bank Mongolia 2026” by Global Banking & Finance Review Awards.

Mongolia–Russia–China Trade & Transit: Mongolia and Russia are advancing regional connectivity talks as an EAEU trade pact with Mongolia is set to start on July 22, with focus on road transport, energy and petroleum links. Trilateral Corridor Push: A July 2 Mongolia–Russia–China deputy-level meeting in Ulaanbaatar reviewed progress on the Mongolia–Russia–China economic corridor, including railway/road transit logistics and energy infrastructure, plus updates on a Russia-to-China natural gas pipeline crossing Mongolia. Climate Policy Milestone: Mongolia’s parliament approved the country’s first framework Law on Climate Change, setting rules for emissions cuts, resilience, climate finance, carbon markets, and reporting. Finance for MSMEs: ADB and Golomt Bank signed a $64m loan to expand sustainable lending to micro, small and medium enterprises, including women-owned businesses, with support for energy efficiency, eco-tourism and waste management. Energy Infrastructure in the North: Inner Mongolia’s State Grid completed full township coverage via a new 10-kV Qiqian power line, boosting rural power access. South Korea Defense Link to Mongolia: South Korea’s President Lee Jae Myung will attend the NATO summit in Ankara (July 7–8) then visit Mongolia (July 9–11), aiming to deepen defense industry cooperation and sign MoUs—an angle tied to Mongolia’s critical minerals role. AI & Cyber Industry Signal: DeepSeek job postings suggest it may be building a cybersecurity-focused AI agent for vulnerability discovery and attack-path mapping.

Climate Law: Mongolia’s parliament passed the country’s first comprehensive Law on Climate Change, setting a legal base for emissions cuts, climate resilience, climate finance, carbon markets, and reporting. Regional Diplomacy & Trade Corridors: Mongolia, Russia, and China held a trilateral consultative meeting in Ulaanbaatar, discussing progress on the economic corridor program plus rail, road, transit logistics, and energy infrastructure. Sustainable Finance: ADB and Golomt Bank signed a US$64m deal to expand sustainable lending to micro, small and medium enterprises, including women-owned firms, with support for energy efficiency, eco-tourism, and waste management. Mining & Investment Talks: Mongolia’s industry minister met Rio Tinto’s board chair to discuss Oyu Tolgoi and push for lower loan interest rates and dividend payouts by autumn 2026. Digital Economy Incentives: Mongolia approved the IT virtual zone list for eligible IT products, works, and services, enabling tax relief for registered entities. Energy & Gas Development: TMK Energy reported stronger coal seam gas output at Gurvantes XXXV and set an August drilling/workover campaign. Infrastructure Upgrade: Ulaanbaatar’s new central wastewater treatment plant began operations mid-June, boosting capacity and supporting city expansion. Defense & Industry Linkages: South Korea’s President Lee Jae Myung will attend a NATO summit in Ankara and then visit Mongolia, aiming to deepen defense industry cooperation and sign MoUs.

Mongolia–Mining & Energy: Rio Tinto and the Mongolian government are moving on Oyu Tolgoi talks after a June 30 management agreement, with Mongolia pushing for lower loan interest rates and dividend payouts starting by autumn 2026, while Rio Tinto says trust and more cooperation frameworks can boost value for the public. Mongolia–Digital Economy: Mongolia’s Cabinet approved tax-support rules for IT firms registered in the “virtual zone,” enabling sales revenue tax relief under the 2024 Law on Supporting IT Production, with implementation and monitoring assigned to the Finance and Digital Development ministries. Mongolia–Infrastructure: Ulaanbaatar’s new central wastewater treatment plant (250,000 cubic meters/day) has begun operations, built with China’s support and backed by the Export-Import Bank of China, aiming to cut pollution and support city expansion. Mongolia–Investment & Risk: A week of Oyu Tolgoi disruption from a small export-road blockade highlights how quickly mining-linked revenues can be hit, while a separate report warns of a growing disinformation ecosystem targeting Western-backed projects in Mongolia. China–Power & Industry: China Three Gorges’ 1 GW Gobi Desert hybrid solar complex entered commercial trial operation, using molten-salt thermal storage to keep output going for up to eight hours after sunset—an industrial-scale challenge to “solar is only daytime” assumptions. China–Manufacturing Pulse: China’s manufacturing purchasing managers’ index rose to 50.3 in June, driven by domestic demand and a rebound in export orders, with inventory clearing improving and raw material price growth easing. China–AI & Cyber Talent: DeepSeek’s job ads point to an agentic “code” push aimed at finding vulnerabilities in real products, alongside broader hiring after its record $7B+ funding round. Regional Policy: China’s Ethnic Unity and Progress Promotion Law took effect July 1, drawing condemnation from Germany and the UK over forced assimilation and cross-border repression concerns.