Large-Scale Korea-Saudi Defense Contract Imminent... Yoon's Sales Break 'Middle East = Construction' Stereotype

Yoon's State Visit to Saudi Arabia
Final Stage of Defense Cooperation Talks "Saudi Arabia's New Blue Ocean"
60 Trillion Won Investment Cooperation Including 21 Trillion Won New Contracts

Discussions on large-scale defense industry cooperation between South Korea and Saudi Arabia have entered the final stages. Following President Yoon Suk-yeol's state visit to Saudi Arabia, export contracts in various fields such as air defense systems and firepower weapons are expected to be concluded soon. Although the Saudi side will not disclose national security-related details or specific contract sizes, the forthcoming 'Korea-Saudi Joint Statement,' which will comprehensively cover areas of cooperation between the two countries, is expected to include principles of such 'security cooperation.'

Kim Tae-hyo, the First Deputy Director of the National Security Office, held a briefing on the 22nd (local time) at the press center set up in Riyadh, stating, "Defense projects are emerging as a new blue ocean in cooperation with Saudi Arabia," and reported that such defense cooperation programs between the two countries are being discussed. In particular, Deputy Director Kim described the defense cooperation between the two countries as a "long-term and systematic" process rather than a one-time collaboration. He expressed the view that this would serve as a driving force to further expand South Korea's defense export achievements, stating, "We will use this Middle East tour as a catalyst to expand the scope of our defense export market."

President Yoon Suk-yeol, on a state visit to Saudi Arabia, held a Korea-Saudi Arabia summit 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]

Established Defense and Defense Industry Cooperation Foundation with Saudi Arabia... Demand for Korean Weapon Systems Expected to Increase Worldwide

President Yoon has been laying the foundation for expanding defense and defense industry cooperation with Saudi Arabia. Since the visit of Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud to South Korea in November last year, discussions on defense industry cooperation centered around the 'Korea-Saudi Vision 2030 Committee' have continued. At that time, the Saudi side expressed a desire for hardware and software cooperation to strengthen defense capabilities.

In March, President Yoon met with Saudi Defense Minister Khalid bin Salman Al Saud to discuss strengthening defense and defense industry cooperation. President Yoon expressed sympathy for Saudi Arabia's defense innovation efforts, saying, "If the two countries share experiences and visions of defense innovation, greater synergy effects can be expected," and announced, "South Korea plans to actively promote defense industry cooperation with Saudi Arabia."

Ahead of President Yoon's state visit to Saudi Arabia, Defense Minister Shin Won-sik met with Saudi Deputy Minister of Defense for Political Affairs Khaled bin Hussein Al Biyari to discuss defense and defense industry issues between the two countries. Minister Shin explained various domestically produced weapon systems exhibited at the 'Seoul International Aerospace and Defense Exhibition' (Seoul ADEX), and Deputy Minister Al Biyari responded, "Let us further strengthen cooperation in the defense sector, including mutual visits of senior military officials, joint exercises, and doctrinal areas."

The Saudi side highly appreciates the high performance, cost-effectiveness, and rapid delivery capabilities of K-Defense systems. Deputy Director Kim also explained, "We aim to cooperate so that weapon systems incorporating our excellent defense technology will help strengthen Saudi Arabia's defense capabilities." However, the detailed contents of the contract expected to be concluded soon were not disclosed. Due to threats surrounding Saudi Arabia, such as Middle East conflicts, if the weapon systems and contract sizes with South Korea are disclosed, neighboring countries could track them. A presidential office official added, "(The purchase contract) is at the stage of being finalized, and the scale and amount are quite large."

The South Korean government expects that if this contract is successfully completed, demand and interest in South Korean weapon systems will increase not only in the Middle East but also worldwide, including Europe and Southeast Asia. On the 17th, President Yoon personally attended Seoul ADEX and told delegations from 57 countries, "Our government will establish an ecosystem that allows the defense industry to continue growing and enhance global competitiveness," adding, "We will share our defense industry's growth experience with allied countries and build a defense security cooperation system."

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]

The 'Middle East = Construction' Equation Continuing for Decades... Evolving into Advanced Industry Partners, Notable Strengthening of Cooperation in Hydrogen Sector

The presidential office evaluates the practical achievements of such defense cooperation as an expansion of the economic cooperation system between South Korea and Saudi Arabia. The economic cooperation system, which had been confined to 'Middle East = Construction' for decades, has been reorganized. President Yoon emphasized, "In the post-oil era, it is encouraging that South Korea is Saudi Arabia's optimal partner, and the bilateral relationship is developing from traditional energy and construction sectors into an advanced industrial partnership that also includes automobiles and shipbuilding."

Following talks with Crown Prince bin Salman, President Yoon is expected to secure the signing of more than 60 documents between the two countries. These include contracts and MOUs (Memorandums of Understanding) worth at least $15.6 billion (21.1 trillion KRW). This is separate from the contracts and MOUs worth $29 billion (39.2 trillion KRW) signed during Crown Prince bin Salman's visit to South Korea last November. In less than a year, the two countries have established an economic cooperation system totaling $44.6 billion (60.3 trillion KRW).

At the Korea-Saudi Investment Forum attended by President Yoon, companies and institutions from both countries have already signed a total of 46 contracts and MOUs. By sector, these include ▲ Energy and power sector: 7 agreements (2 contracts, 5 MOUs) ▲ Infrastructure and plants: 8 agreements (1 contract, 7 MOUs) ▲ Advanced industries and manufacturing (including electric vehicles): 19 agreements (2 contracts, 17 MOUs) ▲ New industries: 10 agreements (1 contract, 9 MOUs) ▲ Financial cooperation and other MOUs: 2 agreements.

Follow-up actions on contracts and MOUs signed last November are also progressing smoothly. Chief Presidential Secretary for Economic Affairs Choi Sang-mok explained, "In less than a year, more than 60% of the $29 billion is materializing into concrete projects." This dispels concerns that MOUs only have a declarative meaning without legal binding force.

During this summit, South Korea and Saudi Arabia also agreed to announce a Korea-Saudi Joint Statement outlining the direction of cooperation covering political, economic, social, cultural, and international fields. The draft is currently being coordinated and is expected to include not only economic cooperation but also security issues. A senior presidential office official said, "Once the economic schedule is completed around tomorrow, the joint statement draft summarizing all achievements will likely include references to issues such as the Israel-Palestine conflict, the Ukraine situation, and security issues on the Korean Peninsula."

In a prior written interview with the Saudi daily Al Riyadh, President Yoon said, "Amid increasing instability in international security due to North Korea's nuclear and missile provocations, the Israel-Hamas armed conflict, and the Ukraine war, this summit will be an opportunity for the two countries to exchange views on how to jointly contribute to world peace and sustainable development." He added, "Since Saudi Arabia has maintained a firm stance supporting nuclear non-proliferation on the international stage, the Republic of Korea intends to actively cooperate with Saudi Arabia to block North Korea's nuclear and missile provocations and development."

However, regarding contingency plans for the possibility of worsening war in the Middle East situation, the presidential office stated, "The Republic of Korea will primarily emphasize and urge adherence to existing international laws and regulations while reviewing support and contribution measures starting from humanitarian issues within our capacity," adding, "At this stage, we are not at a point to be militarily, politically, or directly involved or to take a specific stance on this issue."

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