Ulaanbaatar: South Korea's Namyang Dairy Products Co. has signed a memorandum of understanding (MOU) with Mongolia's major food distributor, Maximus Distribution LLC, to enhance the export of Korean foods. The dairy company announced the agreement on Friday, marking a significant development in Korea-Mongolia trade relations.

According to Yonhap News Agency, the two companies have committed to increasing the exports of Korean foods to Mongolia by approximately 10 billion won (US$6.6 million) over the next three years. This agreement was finalized during a business forum held alongside President Lee Jae Myung's state visit to Mongolia, which commenced on Thursday. This visit is notably the first presidential trip from South Korea to Mongolia in 15 years.

Maximus Distribution LLC is a prominent player in the Mongolian food distribution sector, with a vast network of around 13,000 sales channels, including traditional markets, convenience stores, and discount stores. It also boasts an advanced logistics center and a cold-chain system, as highlighted by Namyang Dairy Products.

Namyang expressed optimism that this partnership will facilitate the expansion of its powdered milk products in Mongolia. The Mongolian market heavily relies on traditional markets and regional grocery stores for the consumption of dried whole milk, presenting a strategic opportunity for Namyang's growth in the region.