South Korean President Yoon Suk Yeol, left, and Saudi Crown Prince Mohammed bin Salman [Photo by Yonhap]

According to Pulse by Maeil Business News Korea,

South Korean President Yoon Suk Yeol and Saudi Crown Prince Mohammed bin Salman discussed a range of economic, infrastructure, energy, and security cooperation measures between their two countries during a summit in Riyadh on Sunday (local time), Yoon’s office said. Yoon is currently on a six-day state visit to Saudi Arabia and Qatar.

“I am pleased to pay a state visit to Saudi Arabia less than a year after Crown Prince Mohammed bin Salman’s visit to Korea in November last year. I look forward to further deepening our bilateral relationship as we celebrate the milestone 50th anniversary of our companies’ entry into Saudi Arabia,” Yoon said during the summit, which was held at the Al Yamamah Palace.

The prince responded by expressing his hope to continue cooperating with Korea in various fields to ensure the success of Saudi Arabia’s national development strategy, Vision 2030, according to the presidential office.

Both countries signed an agreement on visa exemption for diplomats and official passport holders, a memorandum of understanding (MoU) for a Korea-Saudi Arabia Strategic Partnership Committee, and a hydrogen oasis cooperation initiative in the presence of the two leaders on the same day.

Yoon’s visit to the region has significantly increased the visibility of Korean companies’ factories in the Middle East. The two countries will sign 51 deals and memorandums of understanding (MOU) worth a total of $15.6 billion in mutual investments during Yoon’s state visit to the Arab country, his office said Sunday, setting the stage for a “second Middle East boom.”

Hyundai Motor Co. and Saudi Arabia’s Public Investment Fund have signed a contract to jointly invest approximately $400 million to establish an automobile assembly factory. The factory will produce electric and internal combustion engine cars using the Completely Knocked Down (CKD) method and will be Hyundai Motor’s first production base in the Middle East.

Samsung C&T Corp. will build a modular housing and construction materials manufacturing factory in Saudi Arabia, which will pave the way for the company to compete for construction projects in the Middle East, including Saudi’s mega-city project Neom, with the market size for modular construction in the Middle East estimated at $4.5 billion. Additionally, Korea National Oil Corp. has signed a joint oil storage agreement with the Saudi Arabian Oil Group, or Saudi Aramco, for a storage capacity of 5.3 million barrels as a measure to expand reserves in preparation for energy crises.

“I believe Korean companies will be valuable partners for Saudi Arabia to build new cities like Neom City,” Yoon said in a written interview with Saudi media outlet Al Riyadh that was published on Sunday.

In a related development, Yoon visited the historic site of Diriyah near the Saudi Arabian capital, which is considered the birthplace of the royal Saudi family, after arriving in the country on Saturday. The site is slated for a massive $20 billion development project, raising the possibility of Korean companies participating in it. “If the opportunity arises, we will actively discuss ways for our companies to participate,” senior presidential secretary for economic affairs Choi Sang-mok said.

By Park Yun-gyun and Yoon Yeon-hae

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Source: Pulse by Maeil Business News Korea (Oct. 23, 2023)