S. Korea, Saudi sign US$15.6 bln deal

Oct 23, 2023, 10:05 am

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President Yoon Suk-yeol, who is on a state visit to Saudi Arabia, holds a summit with Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman at the Al Yamamah Palace in Riyadh on Oct. 22, 2023./ Source: Yonhap News

AsiaToday reporter Hong Sun-mi

President Yoon Suk-yeol, who is on a state visit to Saudi Arabia, met with Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman on Sunday to carry out his “sales diplomacy” to facilitate a “Second Middle East boom” for South Korean businesses, asking the Saudi government help the South Korean companies participate in the Neom City project.

Yoon’s state visit has increased the possibility of South Korean companies winning Neom City project orders, as well as Hyundai Motor’s construction of an electric vehicle production plant and HD Korea Shipbuilding & Offshore and ARAMCO’s shipyard building.

South Korea and Saudi Arabia signed 51 deals and memorandums of understanding (MOU) worth a total of US$15.6 billion on Yoon’s state visit to the Arab country.

Yoon met with Crown Prince Mohammed bin Salman and agreed to deepen and develop bilateral strategic partnership through South Korea-Saudi talks, luncheon, and exchange ceremony of agreement and MOU, according to the presidential office.

Yoon asked for the Saudi Arabian Crown Prince’s support so that South Korean companies win Neom City orders. South Korean companies, including Hyundai Engineering & Construction and Samsung C&T, have participated in bidding for US$25 billion of the total US$500 billion worth of projects to be carried out in connection with the mega development projects of the Neom city.

“I believe South Korean companies will be a good partner in the process of Saudi Arabia’s construction of new cities like Neom,” Yoon said in a written interview with the Saudi newspaper Al Riyadh ahead of his state visit.

“It is a request from the president to the crown prince about the participation of South Korean companies in the Neom project,” Senior presidential secretary for economic affairs Choi Sang-mok said.

During the meeting, the two leaders also discussed follow-up measures to the US$29 billion investment deals signed during the crown prince’s visit to South Korea in November 2022. “More than 60 percent of the US$29 billion investment has become visible in less than a year,” Choi said.

#South Korea #Saudi Arabia #Neom #state visit