Chaebol chiefs seek more business in Saudi Arabia

President Yoon Suk Yeol shakes hands with Samsung Electronics Chairman Lee Jae-yong during the Korea-Saudi Arabia Investment Forum at Fairmont Riyadh in Saudi Arabia, Sunday. Hyundai Motor Group Executive Chair Chung Euisun is seen between Yoon and Lee. Yonhap

Korea's chaebol leaders met with counterparts in Saudi Arabia, Sunday, to boost bilateral business alliances by signing dozens of deals at an investment forum in Riyadh, according to the Federation of Korean Industries (FKI), Monday.

Accompanying President Yoon Suk Yeol, the business leaders led the country's new phase of relations with the Middle Eastern kingdom as both countries position themselves for emerging industries in ICT, hydrogen, mobility and AI as well as Saudi's mega-project NEOM.

The Seoul-Riyadh investment forum comprised 400 dignitaries from both countries including representatives of Korea's large-size firms including Samsung Electronics, Hyundai Motor Company, Hanhwa, GS, Doosan Enerbility and Naver. Including SME representatives with promising trade links to Saudi Arabia, 135 Korean businesspeople convened in Riyadh on Sunday, the FKI said.

The Koreans met some 200 Saudi counterparts including Public Investment Fund Governor Yasir Al-Rumayyan and representatives of SABIC, STC, Aramco and Maaden.

President Yoon, delivered an opening speech for the forum to an audience including Saudi Investment Minister Khalid Al-Falih, Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz Al-Saud and Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. Participation by such high-profile officials from the Saudi government reflects how carefully the two countries were treating each other. The scene follows November 2022 when Saudi Crown Prince Mohammed bin Salman visited Seoul and agreed to upgrade the bilateral relationship to a strategic partnership.

President Yoon Suk Yeol gives a speech during the Korea-Saudi Arabia Investment Forum at Fairmont Riyadh in Saudi Arabia, Sunday. Yonhap

A total of 46 business deals have been signed as a result of the bilateral meeting. Forty memoranda of understanding (MOU) and six contracts came along in the fields of energy, infrastructure, manufacturing, robotics and finance. The forum saw the two countries exchanging a dossier of agreement on building a Hyundai Motor Company factory in Saudi Arabia, one of the Saudi government's key businesses, according to the FKI.

Minister of Trade, Industry and Energy Bang Moon-kyu and Saudi investment minister Khalid Al-Falih oversaw the deals being signed during the forum.

The forum saw Korea's top-tier tycoons including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Chung Euisun, Hanwha Solutions President Kim Dong-kwan and HD Korea Shipbuilding & Offshore Engineering CEO Chung Ki-sun.

Prior to the forum, trade minister Bang and Saudi energy minister signed seven business deals around the "hydrogen oasis cooperation initiative." The set of two contracts and five MOUs reflect both countries' attempts to reduce carbon emissions and develop renewable energy.

Under the new energy deals, Korea Electric Power Corp. (KEPCO), POSCO Holdings and Lotte Chemical signed a letter of intent with Saudi's state-run energy firm Aramco for a $15.5 billion project to cooperate in the production of blue ammonia at Saudi's Ras Al Khair. Other hydrogen development and production deals bound together HD Hyundai Oilbank and Aramco as well as KEPCO and Aljomaih Energy & Water.

Korea National Oil Corp. and Aramco agreed to store Saudi petroleum in Ulsan, South Gyeongsang Province, for more convenient bilateral trade and emergency use. Other agreements on power facilities and parts distribution saw HD Hyundai Electric and BHI signing MOUs with Algihaz Holding and Rezayat Group, respectively.