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.
Korea, Saudi Arabia ink over 50 MOUs worth $15.6 bil.
President Yoon Suk Yeol speaks with Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman during their meeting at Al Yamamah Palace in Riyadh, Saudi Arabia, Sunday (local time), on the occasion of the former's state visit to the kingdom. Joint Press Corps
By Nam Hyun-woo
Two countries expand scope of economic partnerships
President Yoon Suk Yeol and Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman agreed to strengthen economic cooperation across all industries, Sunday, pledging further developments in the two countries’ future-oriented, strategic partnership.
On the occasion of their summit, the two governments and businesses from both countries inked more than 50 new memoranda of understanding (MOUs) and contracts worth $15.6 billion, in addition to deals worth $29 billion that were signed during Prince Mohammed’s visit to Seoul in November last year.
Yoon and Prince Mohammed met at Al Yamamah Palace on the occasion of the Korean leader’s state visit to Saudi Arabia. Yoon arrived in Riyadh on Saturday, marking the first state visit to the kingdom by a Korean leader. To welcome the Korean president, two F-15 fighter jets from the Royal Saudi Air Force escorted his presidential jet.
During the meeting, the leaders focused on expanding their bilateral economic partnership. According to the presidential office, Yoon said this year marks the 50th anniversary of Korean firms entering the kingdom, and added that he hopes to deepen bilateral relations through his visit.
Prince Mohammed responded by saying he wants to see developments in practical cooperation with Korea, which is one of the key partners of Saudi Arabia's Vision 2030, and expects bilateral relations to expand.
Saudi Vision 2030 is a roadmap overseen by Prince Mohammed aimed at lowering the kingdom’s economic reliance on oil and moving on to future growth industries.
President Yoon Suk Yeol and Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman enters Al Yamamah Palace in Riyadh, Saudi Arabia, Sunday (local time). Joint Press Corps
“In the post-oil era, Korea is the optimal partner for Saudi Arabia, and it is encouraging to see bilateral relations advancing from conventional energy and construction partnerships to advanced industry partnerships that entail the joint manufacturing of automobiles and ships,” Yoon was quoted as saying.
The Korean president cited Hyundai E&C’s $5 billion agreement with Saudi Aramco signed in June to build a mega petrochemical plant, called Amiral project, as one of the biggest achievements of the two countries’ economic partnership, and asked the crown prince and his government to pay attention to efforts by Korean firms to participate in Riyadh’s mega projects, such as the NEOM smart city.
Yoon also asked for Saudi Arabia’s leadership as the biggest petroleum exporter in the world to help stabilize the global oil market in the wake of growing uncertainties.
According to senior presidential secretary for economic affairs Choi Sang-mok, Yoon stressed that Saudi Arabia is “Korea’s most trusted and cooperative oil exporter,” and discussed with the crown prince ways to stabilize petroleum supply.
Also at the meeting, Korea National Oil Corp. (KNOC) and Saudi Aramco signed a contract to jointly stockpile 5.3 million barrels of crude oil. Following the contract, Aramco will store oil at KNOC’s Ulsan base by 2028. And in the event of an oil shortage in Korea, KNOC will receive priority in purchasing Aramco’s stockpile.
Yoon and Prince Mohammed also acknowledged that the two countries have significant potential to cooperate in the fields of tourism, smart farming, patents, maritime, statistics, cybersecurity and other emerging fields and agreed to make efforts to see tangible outcomes.
While the leaders were watching, the two countries’ energy ministers signed a cooperation initiative on hydrogen oasis, which contains details on bilateral cooperation across the hydrogen energy ecosystem.
On the diplomatic front, the presidential office said Yoon and the crown prince shared their opinions on the growing geopolitical uncertainties in the Middle East in the wake of the conflict between Israel and Hamas, while the Korean president expressed his intention to provide necessary assistance, including humanitarian aid.
President Yoon Suk Yeol applauds during a ceremony for joint venture agreement between Hyundai Motor Group and Saudi Arabia's Public Investment Fund (PIF) at the Fairmont Hotel in Riyadh, Sunday (local time). From left are Hyundai Motor Group Executive Chairman Chung Euisun, Deputy Prime Minister Choo Kyung-ho, Minister of Trade, Industry and Energy Bang Moon-kyu, Hyundai Motor Company CEO Chang Jae-hoon, Yoon, PIF Deputy Governor Yazeed Al-Humied, PIF Governor Yasir Othman Al-Rumayyan. Yonhap
After the meeting, Yoon attended a bilateral investment forum where the two governments and companies from both sides signed 40 MOUs and six contracts, spanning the energy, infrastructure, manufacturing and emerging industries.
Some of the highlights among them include a $15.5 billion letter of intent between Korea Electric Power Corp. POSCO Holdings, Lotte Chemical and Saudi Aramco to produce low-carbon ammonia called blue ammonia.
Korea’s Hyundai Motor Group and Saudi Arabias’s Public Investment Fund inked a contract to set up an internal combustion and electric vehicle plant capable of producing 50,000 vehicles a year. It will be the first Korean car factory in the Middle East.
“On the occasion of Yoon’s state visit, there will be more MOUs and contracts signed between the two sides, whose combined value reaches $15.6 billion,” Choi said. “This is an addition to the MOUs worth $29 billion which were agreed upon during the crown prince’s visit to Seoul last year.”
During Prince Mohammed’s visit to Seoul in November last year, businesses in the two countries signed 26 MOUs worth $29 billion. Choi said more than 60 percent of those MOUs are showing progress to turning into actual deals.
President Yoon Suk Yeol listens to Diriyah Gate Development Authority board member Fahd AlSamari, third from left, during his visit to Diriyah, Saudi Arabia’s historical site where the original home of the Saudi royal family was located, Saturday (local time). Joint Press Corps
On Saturday , Yoon paid a visit to Diriyah, Saudi Arabia’s historical site where the original home of the Saudi royal family was located, and was briefed about Diriyah Gate, a $20 billion heritage and tourism project that Riyadh is pursuing as part of Saudi Vision 2030.
There, Saudi Arabian Investment Minister Khalid Al-Falih asked Yoon to support Korean firms’ participation in Diriyah Gate, according to presidential spokesperson Lee Do-woon. Lee noted that the minister mentioned construction, hotels, restaurants and other fields of partnership, citing specific companies.