Seoul: South Korea and Turkmenistan have officially signed an investment protection agreement to bolster economic cooperation and provide a legal framework for safeguarding investors from both nations, as reported by Seoul's foreign ministry. The agreement was signed by South Korea's Foreign Minister, Cho Hyun, and Turkmenistan's Deputy Prime Minister, Hojamyrat Geldimyradow, during the inaugural South Korea-Central Asia Summit held in Seoul.

According to Yonhap News Agency, the agreement includes provisions for national treatment and most-favored nation treatment for investments. It outlines requirements and compensation standards in situations of investment expropriation and establishes procedures for resolving investor-state disputes.

The ministry expressed that the agreement is expected to strengthen economic and trade cooperation between the two countries. It aims to enhance investment stability for South Korean companies, thereby expanding opportunities in promising sectors within Turkmenistan and the broader region. These sectors include new city construction, shipbuilding, and the development of gas, chemical, and fertilizer plants.

Additionally, the agreement is intended to provide an international legal foundation for protecting South Korean investors in Turkmenistan. With this signing, South Korea has now concluded investment protection agreements with 102 countries, out of which 85 are currently in effect. This agreement also means that South Korea now has investment protection agreements with all five Central Asian nations participating in the summit: Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan, and Tajikistan.

Turkmenistan is recognized as a resource-rich country in Central Asia, noted for its abundant natural gas resources and significant demand for large-scale infrastructure development, as highlighted by the ministry.