Korea and Saudi Arabia Establish 1.1 Trillion Won Casting and Forging Joint Venture to Strengthen Economic Cooperation

[Sejong=Asia Economy Reporter Kwon Haeyoung] South Korea and Saudi Arabia will establish a casting and forging joint venture worth $940 million (approximately 1.1209 trillion KRW) within the Saudi King Salman Marine Industrial Complex.

The Ministry of Trade, Industry and Energy signed a memorandum of understanding (MOU) on this matter on the 18th (local time) at the 3rd 'Korea-Saudi Vision 2030 Committee' held in Riyadh, Saudi Arabia.

Since agreeing on Korea-Saudi Vision 2030 cooperation at the G20 summit in September 2016, the two countries have held a total of six meetings, including two ministerial-level talks, to explore collaboration models and discuss cooperation plans.

At the 3rd committee meeting held on the occasion of President Moon Jae-in's official visit to Saudi Arabia, the delegations from both countries reviewed past achievements and discussed new collaboration models. The meeting was attended by Minister of Trade, Industry and Energy Moon Seung-wook and Minister of Investment Khalid Al-Faleh as chief representatives, along with directors and section chiefs from relevant ministries of both countries.

The two governments expect that the signing of the MOU for establishing the joint venture within the Saudi King Salman Marine Industrial Complex will lead to a total joint investment of $6.6 billion (approximately 7.8705 trillion KRW).

Additionally, to secure alternative water sources in Saudi Arabia considering the desert climate characteristics, they agreed to develop Saudi-customized seawater desalination technology and start operating a pilot plant in March.

They also plan to strengthen cooperation across the education sector, including areas of creativity, innovation, and artificial intelligence (AI), which are of interest to the Saudi side.

In his closing remarks, Minister Moon said, "Korea-Saudi Vision 2030 will serve as a platform to prepare for the future and function as a consultative body for both countries to actively respond to unforeseen changes. Let us work together through the committee to support cooperation and investment between companies of both countries."

This content was produced with the assistance of AI translation services.