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Korea, Saudi Arabia bolster ties in energy, infrastructure, manufacturing
Minister of Trade, Indusry and Energy Bang Moon-kyu, left, poses with Saudi Miniser of Energy Prince Abdulaziz bin Salman bin Abdulaziz Al-Saud at the Saudi ministry's headquarters in Saudi Arabia, Sunday. Courtesy of Ministry of Trade, Industry and Energy
By Ko Dong-hwan
Korea and Saudi Arabia signed a total of around 50 business deals in Riyadh, further cementing the bilateral alliance between the two governments and companies in both countries, the Ministry of Trade, Industry and Energy said on Sunday.
The deals include 40 memoranda of understanding (MOU) and six contracts in the fields of energy, infrastructure, manufacturing, robotics and finance. Minister of Trade, Industry and Energy Bang Moon-kyu and Saudi Arabian Investment Minister Khalid Al-Falih oversaw the deals at the 2023 Korea-Saudi Arabia Investment Forum that was jointly hosted by the Federation of Korean Industries and the Saudi Arabian Ministry of Investment.
The forum saw two contracts and five MOUs sealed in the energy and power sector. Korea National Oil Corp. and Saudi Arabia's state-run energy company, Aramco, signed a contract to cooperate in petroleum storage, while Korea's HD Hyundai Electric and Saudi Arabia's Algihaz Contracting Company signed another deal to cooperate in transformer substation projects.
Korea Electric Power Corp., POSCO Holdings and Lotte Chemical signed a letter of intent (LOI) with Aramco for a $15.5 billion project to cooperate in the production of blue ammonia, a compound consisting of hydrogen and nitrogen. It was one of three new bilateral agreements signed to jointly manufacture hydrogen.
Infrastructure and plant deals were also inked, including a contract between Korea's Dohwa Engineering and Saudi Arabia's SAB Investment to jointly develop the riverside region along Jazal River in Saudi Arabia. Hyundai E&C and the Saudi Arabian investment ministry signed an MOU to cooperate in real estate and infrastructure investments in the Middle Eastern country.
Korean President Yoon Suk Yeol, left, pats an Arabian horse with first lady Kim Keon Hee, right, during a visit to the historical Saudi Arabian town of Diriyah, near Riyadh, Saturday. Yonhap
In one of two contracts in manufacturing and cutting-edge industries, including electric vehicles, Hyundai Motor Group and Saudi Arabia's Public Investment Fund agreed to build an automoible assembly factory in the Middle Eastern country. Korea's fitting and valve maker BMT and Saudi Arabia's Industrial Systems Group inked another contract to launch a consortium to market the Korean firm's products for use in the Saudi Arabian market. A total of 17 MOUs were signed in that field.
In the future industry sector involving robotics, smart solutions, cosmetics and sports, Korea's Poonglim Pharmatech and Saudi Arabia's All Care Group For Investment signed a contract to launch a joint venture factory in the Middle Eastern country to manufature medical devices. Nine MOUs were also signed in those fields.
The two countries previously signed a total of 26 bilateral projects, worth $29 billion, at an investment forum in November 2022 and 56 other projects were newly announced at a Korea-Saudi Arabia Vision 2030 Committee meeting held earlier this month, which was presided over by the investment ministers of both countries. The Korean industry ministry said on Sunday that it will support all of the bilateral projects that now total 128 in number.
Meanwhile, the two countries held a trade consultation session on Sunday at Fairmont Riyadh focusing on key industries shared by both countries, including manufacturing plants, construction, carbon reduction and digital products. Thirty small-to-medium-size Korean companies and 78 Saudi Arabian buyers and clients took part 190 one-on-one consultation sessions.
Hosted by the trade ministry and organized by the Korea Trade-Investment Promotion Agency (KOTRA), participants of the trade show discussed an estimated $21 million worth of deals that can be realized within a year, accoridng to KOTRA.