By Diplomacy Journal Lee Kap-soo

Kazakh President Tokayev received the CEO of KIA Corporation, Song Ho-sung on April 23, 2024. During their meeting, it was emphasized that the production of cars is one of the key areas of Kazakhstan’s industrial policy. 

CEO Song talked about the progress of construction of a full-cycle car production plant in Kostanay, which will be built in 2025. This ambitious project has already attracted over 200 million US dollars in investment and is expected to create 1,500 permanent jobs. The plant is designed with a capacity to produce 70,000 cars annually, with 50,000 cars to be manufactured using the small-unit assembly method, allowing for a higher share of local content.

The CEO also informed of the ongoing work to attract global suppliers of automotive components. In particular, an agreement of intent was signed to build an auto components plant in Kazakhstan. The move is expected to further localize the production process and contribute to the development of the automotive supply chain in Kazakhstan.

President Tokayev welcomed KIA's commitment to localizing auto component production, noting that it represents a significant step towards the growth of Kazakhstan's automotive industry. He stressed the importance of training domestic qualified specialists to support the industry's development.

The meeting concluded with mutual agreement on the positive outlook for the automotive sector in Kazakhstan and a shared commitment to strengthening cooperation between KIA Corporation and the Kazakh Government. This partnership has the potential to drive innovation, create jobs, and solidify the achievements in further improving Kazakhstan's investment climate.