Saudi Prince Khalid bin Al-Waleed to invest in Suncore
Saudi Prince Al-Waleed bin Talal bin Abdulaziz al Saud’s son Khalid bin Al-Waleed. / Korea Times photos by Shim Hyun-chul
By Jhoo Dong-chan
Khalid bin Al-Waleed, chairman of Saudi Arabia-based investment company KBW Investments, is set to become the largest shareholder of Korea’s auto parts and energy storage system (ESS) maker Suncore.
Khalid bin Al-Waleed agreed to invest in the KOSDAQ-listed company during a signing ceremony with Suncore Chairman Choi Kyu-sun at the Federation of Korean Industries (FKI) headquarters on Yeouido, southern Seoul, Thursday.
Khalid bin Al-Waleed is the only son of Saudi Prince Al-Waleed bin Talal bin Abdulaziz al Saud, making this the first time for a Saudi royal family member to invest in a KOSDAQ-listed company.
“It is such an honor and pleasure for me that Khalid bin Al-Waleed decided to become the company’s largest shareholder,” said Choi.
“Suncore will contribute greatly to help Korea’s ever-worsening economy through the partnership with the Saudi royal family.”
Suncore Chairman Choi Kyu-sun, right, poses with Khalid bin Al-Waleed during an investment signing ceremony at the Federation of Korean Industries (FKI) headquarters on Yeouido, southern Seoul, Thursday. / Korea Times photos by Shim Hyun-chul
Under the deal, Khalid bin Al-Waleed said he will invest in Suncore through buying $10 million worth of new stocks. He and Choi also said they will work in cooperation for both companies’ various ongoing and future business projects.
“Khalid bin Al-Waleed’s decision is expected to bring positive effects in expanding our presence not only in Saudi Arabia but also in Gulf Cooperation Council (GCC) countries where he exercises strong influence in business,” said a Suncore official.
Khalid bin Al-Waleed’s father Prince Al-Waleed bin Talal bin Abdulaziz al Saud is a Saudi business magnate, investor and philanthropist who was listed in 2008 on Time Magazine’s Time 100, an annual list of the world’s 100 most influential people.
Born in 1955 and graduating from Menlo College in California, Al-Waleed bin Talal is also Citigroup’s largest individual shareholder, the second-largest voting shareholder in 21st Century Fox and owner of the Four Seasons Hotel George V in Paris and part of the Plaza Hotel.
He visited Korea when the country was struck by the Asian financial crisis of the late 1990s, and made bold investments in Hyundai Motor and Daewoo. For his massive investments in such tough times, the Korean government honored him with a Medal of the Distinguished Order of Diplomatic Service in 1999.
His business and commercial acumen along with excellence in entrepreneurship were acknowledged by Time, which labeled the prince the “Arabian Warren Buffett.” The U.S.-based business media Forbes listed him as the 41st richest man in the world, with estimated net assets worth 19.5 trillion won ($17.3 billion).
He is also the founder, CEO and 95 percent share-owner of the Kingdom Holding Company, one of the Forbes Global 2000 companies with a market capitalization of over $18 billion in 2013.
His son Khalid bin Al-Waleed is a vice chairman of the company’s board.
According to a Suncore official, Choi first met Prince Al-Waleed bin Talal at the Four Seasons Hotel in Beverly Hills, California, in summer 1995 through a chance introduction by the late pop legend Michael Jackson.
The then-hotel owner Al-Waleed bin Talal was familiar with Korea for its construction workers’ diligence in the Middle East, and further welcomed Choi by inviting him to see Jackson’s performance.
Through such friendship, Choi played a crucial role in Al-Waleed bin Talal's 1998 Korea visit, drawing $100 million and $150 million investments for Daewoo and Hyundai Motor, respectively, from the prince.
Al-Waleed bin Talal also visited Korea this May for the first time in nearly 20 years to meet Choi. Choi then joined the prince on a trip to Beijing for discussions with Chinese leaders on the Jeddah Project, a massive construction plan to build a gigantic city in Jeddah centered on Jeddah Tower, which will rise to 1,008 meters to become the tallest building in the world.
His only son Khalid bin Al-Waleed’s five-day visit to Korea was believed to not only be a follow-up measure for the Jeddah Project but also to strengthen the bilateral relationship between the two parties.
Under the Saudi Vision 2030 plan, Saudi Arabia aims to reduce its dependence on the oil industry and diversify economic alternatives by developing the industrial and services sectors such as health, education, infrastructure, recreation and tourism.
The Jeddah Project is known to symbolize the country’s efforts toward its massive infrastructure operation, for which Suncore and other Korean companies seek to secure a bridgehead for their business operations in Saudi Arabia.