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Korea-Kaza-khstan

Industry & Tech

Cooperation Two

Map

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CONTENTS

o Introductiono Trade Landscapeo Investment Landscapeo Industrial & Tech Tie-Ups by Sectoro Conclusion

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Introduction

□

•

□

Korea.. Kazakhstan..

3

Introduction

4

Introduction

□

Korea..

□

-

Kazakhstan..

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Introduction

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Trade Landscape

□ Trade Volume Ups More Than 100-Fold During 1992-2012 Period

o Reaching US$1,193 Million in 2012

o Dynamic Expansion on the Horizon Thanks to a Huge Economic Comple-

mentarity

Source: Korea International Trade Association

Kazakhstan-Korea Trade Trend

Two-Way Trade Volume (Jan.-Aug. 2013)

Korean Imports From Kazakhstan US$122

Million

Kazakhstan Imports From Korea US$692

Million2005 2006 2007 2008 2009 2010 2011 2012

514.16 599.69 802.73

608.18 474.40

938.32 1134.20 1193.46

Two-way trade volume(Unit: US$100 Mil)

-0.7 16.6

33.8

-13.0 -32.1

97.8

20.9 5.2

Increase rate (Y-on-Y) (Unit: %)

77

Korea’s Top 20 Export Items to Kazakhstan Kazakhstan’s Top 20 Export Items to Korea

Rank Item (MTI Code)

Amount

(US$1,000)

Change

(%)

1 Passenger Cars (7411) 221,090 90.2 2 Synthetic Resins (2140) 112,929 25.3 3 Color TVs (8211) 85,729 -16.0 4 Cargo Vehicles (7412) 35,307 129.8 5 Galvanized Steel Sheets (6134) 38,149 34.4 6 Heavy Construction Equipment (7251) 32,796 28.4 7 Other Industrial Machinery (7290) 24,177 231.6 8 Automotive Parts (7420) 26,782 29.3 9 Flat Displays (8361) 24,446 71.9

10 Other Machinery (7901) 19,421 102.6 11 Tires (3203) 13,217 40.6 12 Refrigerators (8230) 12,114 1214.3 13 Heaters (7133) 12,988 18.2

14 Transport & Material Handling Equipment (7121) 11,606 13.5

15 Mining Equipment (7252) 13,693 -17.3 16 Tobaccos (0154) 9,184 6.0 17 Coffees (0151) 10,004 -17.6 18 Lubricating Oils (1336) 9,381 26.5 19 Other Plastic Products (3109) 6,894 -80.0 20 Other Furniture (5290) 8,378 -30.4

Rank Item (MTI Code)

Amount (US$1,000

)

Change

(%) 1 Ferro-Alloys (6181) 107,828 107.6 2 Other Non-Ferrous Metal Products (6290) 65,747 -10.5 3 Aluminium Ingots & Scraps (6211) 60,339 -45.0 4 Silver (1112) 29,670 47.6 5 Zinc Ingots & Scraps (6261) 23,850 -72.1 6 Animal Oriental Medicines (0233) 9,062 -36.6 7 Other Fine Chemical Raw Materials (2289) 5,283 93.9 8 Flat Displays (8361) 3,140 11.9 9 Copper Ores & Scraps (6221) 2,438 -72.9

10 Wireless Communication Equipment & Parts (8128) 137 -

11 Other Printed Materials (9190) 100 - 12 Vegetable Oriental Medicines (0156) 88 - 13 Power Distributors & Controllers (8423) 70 - 14 Accelerators (8333) 60 138.3 15 VCRs (8213) 54 -

16 Other Textile Products (4490) 34

1,698,3

17 Computer Parts (8136) 29 266,76

18 Medical Electronic Equipment (8147) 34 36.5 19 Other Miscellaneous Products (9900) 28 -43.7 20 Bicycle Parts (7434) 37 -72.5 Source: Korea International Trade Association

Trade Landscape

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□ Korea’s Outstanding FDI Surpassed US$3 Billiono Declaration cases topped 536 as of 1Q 2013

o Largely association with high growth with Kazakhstan oil-based economic

growthKorean FDI Trend in Kazakhstan

Korean FDI Kazakhstan During 1Q

in 2013

Source: Korea Exim Bank

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

354 1,823 500 13,820 22,527 25,560

249,293286,620

822,618

153,401131,182101,688196,512

Amount

6 6 3 620 26

53

105

58 6148 51 45

Cased

Investment Landscape

(Unit: US$1000)

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Industrial & Tech Tie-Ups by Sector

□ Both Korean Conglomerates & SMEs Eye on Discovery of Success in Kazakhstano Substantial investment rush seen in energy & Resource sector

Korea Aggregate FDI in Kazakhstan by Sector (During 2008-2013 1Q)

(Unit: US$1000)

Total1,393,844

(100%)

Finance & insurance 710,597(50.98%)

Mining 172,690(12.39%)

Construction 171,319(12.29%)

Manufacturing 106,539 (7.64%)Inclusive transportation ser-vice 53,449 (3.83%)

Real estate & rental 52,853 (3.79%)

Wholesale & Retail 4,918 (0.35%)

Others 121,479 (8.72%)

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Industrial & Tech Tie-Ups by Sector

Oil & Gas

□ A Great Complementarity Between Major Oil Producer & Impoeter

Division Korea Kazakhstan

Oil 10th largest consumer of oil in the world

Second largest oil reserves as well as second largest oil production among former Soviet Republics af-ter Russia

GasProven natural gas reserves at 85 trillion cubic feet according to Oil & Gas Journal

Second largest importer of liquid natural gas in the world behind Japan

Refining & Downstream

- Crude oil distillation capac-ity: 345,100 bbl/d

- Natural gas processing ca-pacity: 1,862 MMcf/d

- Crude oil refining capacity: 2.76 million bbl/d

- Four LNF regasification facility with a total capacity of 4.5 Tcf/d

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Industrial & Tech Tie-Ups by Sector

Oil & Gas

□ Cooperation in Exploration & Development Sectoro Caspian Sea’s Zhambyl Oilfield

- Bilateral equities: Kazakhstan (73%), Korea (27%)

- Members of Korean Consortium: KNOC (9.45%), SK

o LG Int’l of Korea joint development project of NW Konys & Ada oildield

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Industrial & Tech Tie-Ups by Sector

□ Mining Development Accounts for 25% Kazakhstan GDP

Mineral Resource

□ Major Korean Companies Engaged in Kazakhstan Mining Development Project

Status of Kazakhstan’s Mineral ResourceMineral Reserves World'

Ranking Mineral Reserves World's Ranking

Chromium 2.2 mil. tons 1 Cadmium 35,000 tons 7

Uranium 817,200 tons 2 Molybdemun 100,000 tons 11

Rhenium 190 tons 4 Iron Ore 1 billion tons 12

Zinc 12 million tons 5 Copper 7 million tons 12

o SK 네트워크 :o 삼성물산 : - Volume: 3,140 tons - Period: 2011-2017o 대한광업진흥공사 & 삼성물산

- Signed on MOU with KMG of Kazakhstan on 보쉐콜 동광 협력개발 • Project scale: US$1.4 Bil.

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Industrial & Tech Tie-Ups by Sector

Electric Power

• Content: Coal-Fired Thermal Power Plant 1,320MW (660MWx2 Units)

* IPP project (20 years) based on BOOT (Build-Own-Operate-Transfer) method

• Business Implementers: Korean Consortium (KEPCO 40%, Samsung C&T 20%), Samruk Energy 25%, Financial investors 15%

• Total Project Cost: About US$4 billion (US$2.8 billion to be supplied by PF loan)

Balkhash Coal-Fired Thermal Power Plant

□ Kazakhstan’s Growing Demand for Electric Powero Responding to rapid industrialization

o Strengthening its strategic position as a hub of looming Eurasia continent

□ Promising Ties-up With Korea Seeking Global Outreacho Based on excellence of technology & expertise

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Industrial & Tech Tie-Ups by Sector

SOC & Construction (Plant)

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Industrial & Tech Tie-Ups by Sector

ICT

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Industrial & Tech Tie-Ups by Sector

Others

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Social Contribution

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Conclusion