Minister Won Hee-ryong: "First half of this year's order performance, $17.3 billion... 44% exceeding last year"

Discussion on Saudi-Iraq One Team Korea Achievements at Cabinet Meeting
Hyundai Construction Wins $5 Billion Contract in Saudi Arabia Thanks to Jackpot

On the 3rd, Won Hee-ryong, Minister of Land, Infrastructure and Transport, attended a Cabinet meeting to discuss the 'One Team Korea Saudi Arabia and Iraq Activity Achievements and Follow-up Action Implementation Plan.'

At the meeting, Minister Won announced that thanks to the successful signing of the Amiral Project contract, overseas construction orders reached $17.3 billion in the first half of this year, exceeding last year's orders ($12 billion) by 44%. The Amiral Project is a petrochemical plant construction project promoted by Saudi state-owned oil company Aramco in the Jubail area of eastern Saudi Arabia, with Hyundai Engineering & Construction winning Package 1 and Package 4. The contract amount alone is $5 billion (approximately 6.5 trillion KRW), marking the largest scale of Saudi market entry to date. It is the first time in nine years since 2014 that a Korean company has secured a project worth over $5 billion overseas.

The Ministry of Land, Infrastructure and Transport also announced that at the 9th Korea-Iraq Joint Committee held last month for the first time in six years, both countries discussed ways to activate comprehensive exchanges and cooperation. They agreed to strengthen cooperation and support from the Iraqi government for the resumption of the Bismayah New City Project (remaining construction scale approximately $6 billion), which had been suspended since 2022. At the Cabinet meeting, follow-up measures to expand Korean companies' entry into Iraq were discussed with related ministries.

Minister Won Hee-ryong discussed the Saudi side's proposals, including holding a joint cooperation meeting between Korea and Saudi Arabia to strengthen cooperation in the hydrogen sector, and establishing communication channels related to AI technology. The Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, and other related ministries will cooperate to expand Korea-Saudi hydrogen sector cooperation. The Ministry of Science and ICT will lead discussions on establishing communication channels for knowledge sharing and cooperative projects in the AI field.

Furthermore, at the Marjan Plant construction site meeting, related ministries agreed to continuously review measures to strengthen incentives for overseas workers as proposed by Korean company site staff. Specifically, these include expanding tax exemption benefits, responding to strengthened taxation and localization policies within GCC countries, introducing a special housing supply system for overseas construction workers, and opening a direct flight route between Incheon and Dammam, Saudi Arabia.

The Ministry of Land, Infrastructure and Transport also reviewed follow-up measures on comprehensive exchange and cooperation activation plans between Korea and Iraq discussed at the 9th Korea-Iraq Joint Committee, covering infrastructure, trade, investment, finance, industry, energy, resources, diplomacy, culture, and education.

In the infrastructure sector, the ministry will actively support the prompt promotion of the Bismayah New City Project, agreed to be resumed at this joint committee, in cooperation with the Ministry of Foreign Affairs and the Iraqi government. Additionally, follow-up projects for the Al Faw New Port in Iraq, a transportation cooperation MOU, revision of the air service agreement, and a policy cooperation MOU between Seoul and Baghdad will be pursued.

In trade, investment, and finance sectors, efforts will be made to promote double taxation avoidance agreements, investment protection agreements, customs cooperation MOUs, financial support, and cooperation in export credit insurance. In industry, energy, and resources sectors, plans to promote cooperation in clean energy, petrochemical industry, and power sectors will be explored, along with agricultural and water resource technology and experience exchanges.

In diplomacy, legal affairs, security, and administration sectors, the plan includes holding policy consultations at the director-general level between the foreign ministries of both countries, cooperation based on MOUs between diplomatic academies, ensuring the safety of Korean companies in Iraq, and signing MOUs in legal fields. In education, culture, and sports sectors, comprehensive exchange and cooperation will be strengthened through scholarship projects, education cooperation MOUs, cultural cooperation MOUs, sports cooperation MOUs, and public policy development cooperation.

Minister Won stated, "To secure follow-up orders for mega projects, we will thoroughly implement follow-up measures on the One Team Korea Saudi Arabia and Iraq cooperation achievements. We will strengthen cooperation with major governments and clients at key events such as the NEOM Seoul exhibition this month, GICC 2023 in September, and Cityscape Global hosted by Saudi Arabia in September. We will also promote all-out government support for One Team Korea companies to secure follow-up orders, focusing on mega projects like NEOM."

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