South Korea and Turkmenistan Bolster Economic Dialogue with Investment Protection Agreement
Among the documents signed on September 15—on the sidelines of the President of Turkmenistan’s state visit to Seoul—was the Agreement between the Government of the Republic of Korea and the Government of Turkmenistan on the Promotion and Reciprocal Protection of Investments. The document was signed by Cho Hyun, Minister of Foreign Affairs of the Republic of Korea, and Hojamyrat Geldimyradov, Deputy Chairman of the Cabinet of Ministers of Turkmenistan for Economic Affairs.
The agreement establishes an international legal framework for the comprehensive protection of capital and business entities. It guarantees national treatment and most-favored-nation status for investments, clearly defines the requirements and procedures for compensation in the event of expropriation, and introduces an effective investor-state dispute settlement (ISDS) mechanism. This foundation ensures a level of legal protection for Korean businesses comparable to the conditions enjoyed by major global investors already operating in the Turkmen market.
Experts from the Korean foreign ministry emphasize the strategic significance of this move. Turkmenistan is Central Asia’s most resource-rich nation, boasting large-scale industrialization programs; establishing a reliable framework of guarantees will accelerate the influx of direct investment. Enhanced investment stability opens up direct opportunities for Korean corporations to participate in high-yield projects—ranging from urban development and shipbuilding to gas-based chemicals and mineral fertilizer production.
The agreement’s importance is further underscored by the regional scope of Seoul’s diplomacy. With the signing of this document with Turkmenistan, the Republic of Korea has completed the establishment of a comprehensive investment protection framework covering all five Central Asian states.
This institutional foundation is being built against the backdrop of steadily growing trade relations. According to data from the Korea International Trade Association and the Export-Import Bank of Korea, bilateral trade volume for 2025 is projected at $45 million, while accumulated Korean investment in Turkmenistan’s economy has reached $2.085 million. The signed agreement aims to multiply these figures in the near future.
