Yoon's 'Sales Diplomacy' Worked... Secures Additional 21 Trillion Won During Saudi State Visit

Additional Export and Order Contracts Following the 40 Trillion Won Deal Made During Crown Prince's Visit Last Year
Follow-up Measures on 40 Trillion Won MOU Also Discussed... Separate Agreements with Samsung C&T and KEPCO
Yoon: "Korea is Saudi's Optimal Partner... Korean Companies Interested in Participating in Mega Projects"

On the occasion of President Yoon Suk-yeol's state visit to Saudi Arabia, Korean companies signed a total of about 50 export and order MOUs (Memoranda of Understanding) with the Saudi side, amounting to 21 trillion won. This is separate from the $29 billion (approximately 40 trillion won) worth of MOUs signed between Korean companies and the Saudi government, companies, and institutions during Crown Prince Bin Salman's visit to Korea last November, and additional discussions were held on ways to advance infrastructure cooperation and strengthen energy security cooperation between the two countries.

On the afternoon of the 22nd (local time), President Yoon met with Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, at the Yamama Palace in Riyadh, and agreed to deepen and develop a future-oriented strategic partnership between the two countries based on these matters.

President Yoon Suk-yeol, on a state visit to Saudi Arabia, attended the official welcoming ceremony held at Yamama Palace in Riyadh on the 22nd (local time) and is moving to the meeting room while conversing with Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud.
[Photo by Yonhap News]

On this day, President Yoon and Crown Prince Bin Salman discussed specific follow-up measures to the $29 billion contracts and MOUs signed during the Crown Prince's visit last November. According to the Presidential Office, since the Crown Prince's visit, there have been results such as the groundbreaking of the S-Oil Shahin project worth 9.3 trillion won, the establishment of a $16 million joint fund for venture investment, Hyundai Rotem's pursuit of a $6 billion bid for the NEOM hydrogen railway, and TurboWin's signing of a joint venture agreement worth $3 million.

Additional follow-up measures were also concretized at this meeting. Samsung C&T signed a joint business agreement with the Saudi sovereign wealth fund for a $4.5 billion factory investment targeting the NEOM and Oxagon modular markets, and KEPCO signed an MOU with a Saudi partner company to participate in the $700 million Safaniya cogeneration project bid. Additionally, BMT, a manufacturer of industrial valves, signed a joint venture establishment contract worth $22 million. A senior official from the Presidential Office evaluated, "In less than a year, more than 60% of the $29 billion has materialized into concrete projects."

In particular, President Yoon mentioned, "The $5 billion Amiral petrochemical plant order by our companies in June is a symbolic achievement commemorating the 50th anniversary of Saudi construction entry," and requested the Crown Prince's active interest and support so that Korean companies can secure orders in mega-projects promoted by the Saudi government, such as the $25 billion NEOM project in which Korean companies are currently participating in bids.

President Yoon Suk-yeol, on a state visit to Saudi Arabia, is holding an expanded Korea-Saudi Arabia meeting with Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud at Yamama Palace in Riyadh on the 22nd (local time).
[Photo by Yonhap News]

During the summit, two MOUs in the economic sector were also concluded. First, the Ministry of Trade, Industry and Energy and the Saudi Ministry of Energy signed the "Hydrogen Oasis Cooperation Initiative." Unlike renewable energy, hydrogen can be produced as needed at any time and can be stored in large quantities for long periods. The Presidential Office explained, "Hydrogen is one of the most ideal zero-carbon energy sources that can be used for all purposes including transportation, power generation, heating, and industrial processes," and added, "Saudi Arabia, aiming to be the world's largest hydrogen exporter, and South Korea, a leading country in hydrogen-based industries such as hydrogen vehicles and fuel cells, have great potential for hydrogen cooperation." Furthermore, the two countries plan to operate working groups for each value chain segment?clean hydrogen production, distribution, and utilization?to systematically support cooperative projects between companies of both countries.

An "Implementation Program Agreement on Statistical Cooperation" was signed between the national statistical offices of the two countries. This is expected to provide an opportunity to share statistical production experience and data, and exchange information on new directions for statistical development and statistical legislation.

In light of the recent Israel-Hamas conflict causing instability in the global energy market, including rising international oil prices, ways to strengthen energy security cooperation were also discussed. For Korea, ensuring uninterrupted crude oil supply and stabilizing international oil prices ahead of the winter season is a critical issue directly linked to people's livelihoods. President Yoon emphasized that Saudi Arabia is Korea's most trusted and cooperative crude oil exporting country and discussed measures for continuous and stable crude oil supply.

Accordingly, the Korea National Oil Corporation signed a "Joint Crude Oil Stockpile Agreement" with Saudi Aramco for 5.3 million barrels. Aramco will store and sell 5.3 million barrels of crude oil at the Ulsan storage base until 2028, and Korea will have the right to purchase the stored Aramco crude oil first in case of domestic oil supply emergencies, while also receiving rental income during the five-year lease period.

Meanwhile, President Yoon and Crown Prince Bin Salman exchanged views on the Middle East situation, which is becoming increasingly unstable due to the ongoing Israel-Hamas armed conflict. At this meeting, President Yoon stated that the Korean government will provide necessary cooperation, including humanitarian aid.

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