Mongolia, a country that hitherto remained on periphery of the international arena, has been turned into a strategic nexus that has caught the attention of Russia and China, as the two superpowers has initiated the New Multi-Lateral Diplomacy based on the third neighbor policy. Ever since the recent discovery of large-scale mines in Mongolia, other nations are also seeking to enter Mongolia for the mineral resources development. As Mongolia successfully established democratic institutions and transition to the market economy system in a manner comparable to countries in Eastern Europe, Mongolia’s international status is increasing, not to mention emerging as an attractive country for investment.
Since establishing diplomatic ties with Mongolia in March 1990, Korea has consistently expanded cooperation in various fields but the level of cooperation has not reached the expected level compared to political, social and cultural cooperation between two countries. This stems from a number of political and economic circumstances facing Mongolia including: Mongolia’s underdeveloped economy, relatively small domestic market, and limitations as a landlocked country surrounded by Russia and China. However, it is imperative that Korea recognizes the strategic value of Mongolia, by virtue of its location in the geographical center of Asian continent, with respect to the economic network emerging in the Eurasia as a whole. First of all, Mongolia is a strategic nexus that connects Korea with Siberia and China, and can be an excellent foothold for making inroads into the heart of Eurasia for economic cooperation. It also presents a great potential for Korea in terms of securing natural resources and food supply. Because Mongolia has the highest potential for economic growth as well as mutual cooperation, the Mongolia continues to rise in importance.