Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Chaebol eager to form ties with Saudi prince
Saudi Arabia's Crown Prince Mohammed bin Salman / AFP-Yonhap
By Nam Hyun-woo
By Nam Hyun-woo
Leaders of the top four business groups will seek to bolster ties with Saudi Arabia during Prince Mohammed bin Salman's scheduled visit to Korea next week, according to chaebol watchers Thursday.
They said Samsung, Hyundai Motor, SK and LG will explore business opportunities and strengths regarding Saudi Arabia's bid to shift its economic focus from oil to new growth industries.
According to Cheong Wa Dae, the prince will meet with President Moon Jae-in on the first day of his June 26 to 27 visit to Korea. After the meeting, the prince will have a separate dinner with Korea's business tycoons.
The officials said the dinner will likely be attended by Korea's top businessmen including Samsung Electronics Vice Chairman Lee Jae-yong, Hyundai Motor Group Executive Vice Chairman Chung Euisun, SK Group Chairman Chey Tae-won and LG Group Chairman Koo Kwang-mo, and each group is exploring opportunities to expand business ties with the Middle Eastern country.
Domestic conglomerates have high hopes for relations with the crown prince because he is playing a bigger role in Saudi Arabia's economic and diplomatic efforts. In February, Saudi Arabia and China signed $28 billion worth of economic accords during the prince's visit to the country.
Along with his immense influence as the crown prince of Saudi Arabia, Mohammed bin Salman also controls the world's top crude exporter, Aramco. The Saudi firm is the largest stakeholder in domestic refiner S-Oil and acquired a 20 percent stake in another domestic refiner ― Hyundai Oilbank in January.
The prince is expected to attend a completion ceremony of S-Oil's residue upgrading complex and an olefin downstream complex June 26.
“Saudi Arabia is currently seeking to shift its economic focus from oil to info-tech and renewable energies, which could provide lucrative business opportunities for Korean conglomerates,” an industry official said.
At Samsung Electronics and LG Group, the prince is expected to show interest in the tech giants' 5G communication, artificial intelligence and other info-tech businesses.
In February, Samsung Electronics Vice Chairman Lee hosted Crown Prince Mohammed bin Zayed Al-Nahyan of Abu Dhabi and talked about cooperation in the info-tech business. Industry officials said they expect similar talks will likely take place during the dinner.
For Hyundai Motor Group, the meeting could be an opportunity to expand its sales network in Saudi Arabia, where a driving ban for women was lifted last year. Reportedly, the group is also eyeing cooperation with Saudi Arabia in its hydrogen fuel cell technologies.
SK Group already has business ties with Saudi Arabia, with its chemical, energy and construction units either setting up joint ventures with local companies or participating in railway projects. The official said the group will likely focus on expanding its portfolio in Saudi Arabia.