Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Korea moves closer to 2nd construction boom in Middle East
President Yoon Suk Yeol and Samsung Electronics Executive Chairman Lee Jae-yong, left, look around the NEOM Exhibition Hall in Riyadh, Monday (local time). On the third from left is NEOM CEO Nadhmi Al-Nasr. Joint Press Corps
By Park Jae-hyuk
Hyundai, Naver, Samsung, KT to join megaprojects in Saudi Arabia
President Yoon Suk Yeol’s state visit to Saudi Arabia this week paved the way for Korea to achieve its ambitious plan to win $50 billion in overseas construction orders every year until 2027, via a second construction boom in the Middle East, according to the land ministry, Tuesday.
Monday’s ceremony in Riyadh marked 50 years of construction cooperation between Korea and Saudi Arabia. The president emphasized that Korea’s capabilities in smart city construction will enable the Middle Eastern country, which is conducting a $500 billion project to build the NEOM smart city near the Red Sea, to realize this new example of future cities.
“Korean businesspeople and workers devoted themselves to over 1,900 construction projects across Saudi Arabia,” Yoon told around 200 participants at the ceremony. “Korea and Saudi Arabia should now open a new future in their infrastructure and economic cooperation in line with technological changes and demands of the times.”
Samsung Electronics Executive Chairman Lee Jae-yong, center, speaks with Hyundai Motor Group Executive Chair Chung Euisun, left, and Hanwha Group Vice Chairman Kim Dong-kwan, during a banquet between President Yoon Suk Yeol and Korean businesspeople at Marriott Hotel in Riyadh, Monday (local time). Yonhap
On the sidelines of the event, Hyundai Engineering and its parent company, Hyundai E&C, received a $2.4 billion order from Saudi Arabia’s state-run oil giant Aramco, regarding the construction of a mega-sized gas processing plant in the Jafurah gas field. In June, the two Korean firms signed a $5 billion deal with Aramco for the Amiral project to build a petrochemical complex.
“After a competition with top-tier builders, we succeeded in winning the orders for both phase-1 and phase-2 construction of the Jafurah gas processing plant,” Hyundai Engineering said in a press release. “Aramco recognized our leading technologies and abilities in construction projects.”
President Yoon Suk Yeol, second row third from left, applauds with Korean and Saudi government officials as Hyundai Engineering CEO Hong Hyeon-sung, front row left, and Hyundai E&C CEO Yoon Young-joon, front row right, sign a contract with Aramco Executive Vice President Wail A. Al Jaafari, front row center, at the NEOM Exhibition Hall in Riyadh, Monday (local time). Courtesy of presidential office
Naver also signed a $100 million contract with the Saudi Ministry of Municipal and Rural Affairs and Housing to establish digital twin virtual reality spaces in five cities. The deal came after the Korean firm and the Saudi ministry signed a memorandum of understanding (MOU) in March.
Saudi Arabia plans to use the technology in urban planning and management, as well as flood forecasting. Naver seeks to take advantage of the latest deal to establish a Saudi subsidiary and expand into the Middle East's cloud computing market.
“Based on our world-class IT technologies, we will lead the second export boom in the Middle East,” Naver ESG and External Policy President Chae Seon-ju said. “Naver will serve as a bridge for the export of Korean IT startups to the Middle East.”
President Yoon Suk Yeol, second row third from left, applauds with Korean and Saudi government officials as Naver ESG and External Policy President Chae Seon-ju, front row left, signs a contract with a Saudi Ministry of Municipal and Rural Affairs and Housing official at the NEOM Exhibition Hall in Riyadh, Monday (local time). Joint Press Corps
Samsung C&T signed an MOU with the Public Investment Fund, the Saudi sovereign wealth fund that manages the NEOM project, for their cooperation in Oxagon, a floating port city on the Red Sea.
President Yoon Suk Yeol, second row third from left, poses with Korean and Saudi government officials as Samsung C&T CEO Oh Se-chul, front row right, signs a memorandum of understanding with Public Investment Fund officials at the NEOM Exhibition Hall in Riyadh, Monday (local time). Joint Press Corps
KT and Hyundai E&C also signed an MOU with Saudi Telecom Company (STC) to build digital infrastructure including data centers. Before the MOU signing ceremony, KT CEO Kim Young-shub visited the STC headquarters in Riyadh to talk with STC CEO Olayan M. Alwetaid about their cooperation for the Middle Eastern country’s digital infrastructure.
“Based on our experience in Korea and overseas, we will fulfill our responsibilities as a partner for Saudi Arabia’s digital innovation,” the KT CEO said.
President Yoon Suk Yeol, second row third from left, applauds with Korean and Saudi government officials as KT CEO Kim Young-shub, front row center, and Hyundai E&C CEO Yoon Young-joon, front row right, sign a memorandum of understanding with Saudi Telecom Company CEO Olayan M. Alwetaid, front row left, at the NEOM Exhibition Hall in Riyadh, Monday (local time). Courtesy of presidential office
For Korean firms to win additional mega-sized orders from Saudi Arabia, the Korean land ministry opened an infrastructure cooperation center in Riyadh, which will serve as a liaison office for Korean companies to communicate more easily with NEOM leaders.