"South Korean Companies Invited": Ministry of Land Meets Kazakh Deputy Minister to Launch 31 Trillion Won New City Cooperation

Vice Minister Kim Discusses Urban Development and Future Mobility Cooperation Initiatives

The groundwork has been laid for South Korean construction companies to enter the development project of the Alatau New City in Kazakhstan, a project with a total investment of approximately 28 trillion won. This comes as the Kazakh government sent a high-ranking official to South Korea, expressing hope for the active participation of Korean companies.

The Ministry of Land, Infrastructure and Transport announced that on April 10, Kim Itak, First Vice Minister, met with Albik Bakayev, Deputy Minister of Foreign Affairs of Kazakhstan, at an undisclosed location in Seoul. During the meeting, the two sides agreed to strengthen bilateral cooperation in the development of Alatau New City and in the field of urban air mobility (UAM). Both countries agreed to further develop the Alatau cooperation project at the first Korea-Central Asia Summit, which will be held in Korea in September for the first time.

This meeting was a follow-up to the meeting between Minister of Land, Infrastructure and Transport Kim Yoonduk and Arystanov Nurgali, the Kazakh ambassador to South Korea, in February. It was arranged at the request of the Kazakh side.

Kim Itak, First Vice Minister of the Ministry of Land, Infrastructure and Transport (right), is photographed on the 10th at an undisclosed location in Seoul after meeting with Alibek Bakayev, Deputy Minister of Foreign Affairs of Kazakhstan, to discuss cooperation plans for urban development and urban air mobility (UAM). Ministry of Land, Infrastructure and Transport

Alatau New City is a mega-scale smart city project that Kazakhstan is promoting as a key national initiative. President Kassym-Jomart Tokayev approved the project in 2022, and in September last year, he signed a presidential decree granting Alatau a separate administrative status. The Kazakh government estimates the total project cost at approximately 10 trillion tenge (about 31 trillion won). The plan is to develop Alatau into a new city with a population of 1.9 million and 1.1 million jobs by 2050.

Alatau New City is designed not as a simple residential complex but as an integrated new city encompassing industrial, financial, tourism, educational, and medical functions. More than 90% of the city’s land has been designated as a Special Economic Zone (SEZ), enabling participating companies to benefit from various tax incentives, including exemptions from corporate and value-added taxes. Kazakhstan already held the "Alatau Rise" investment roadshow in Seoul last October, directly appealing to the Korean construction industry for participation. In December, the Korea Overseas Infrastructure & Urban Development Corporation (KIND) signed a memorandum of understanding (MOU) with the Kazakh Ministry of Industry and Construction and others for cooperation in Alatau Smart City development.

The South Korean government plans to use the "Smart Town" site within the new city as the starting point for its entry. This site was selected in January this year as a target for the Ministry’s "K-City Network" project, and a master plan is currently being developed. The K-City Network is a government-to-government cooperation project to apply the Korean smart city model to overseas cities, and since its launch in 2020, it has supported a number of international projects. Industry experts expect that with the establishment of the master plan, the likelihood of South Korean construction and IT companies participating in subsequent design, construction, and operation phases will increase.

Vice Minister Kim went a step further by directly mentioning expansion into the UAM sector. Alatau New City is pursuing the construction of future mobility infrastructure, including eVTOLs (electric vertical take-off and landing vehicles) and vertiports. In March, Kanat Bozumbayev, Deputy Prime Minister of Kazakhstan, announced in parliament that trial operations of air taxis connecting Almaty and Alatau would begin this year. Vice Minister Kim inquired about the progress of the UAM infrastructure project and requested the active support of the Kazakh government to facilitate participation by South Korean companies.

During the meeting, Deputy Minister Bakayev stated, “We hope for the active participation of Korean companies with their abundant experience and expertise in urban development.” Vice Minister Kim responded, “I look forward to tangible results being achieved in the urban sector through the close cooperation between Korea and Kazakhstan. I hope the synergy generated by combining Kazakhstan’s growth potential with Korea’s experience and technological capabilities will lead to success.”

This content was produced with the assistance of AI translation services.