Yoon Secures '107 Trillion Oil Money'... Captured Future Growth Engines

Economic Impact of 27 Trillion Won Created in Saudi Arabia and Qatar
Expansion of Cooperation Areas from Construction and Energy to Advanced Industries
Joint Declaration with Saudi Arabia and Upgrading Relations with Qatar

President Yoon Suk-yeol returned home on the 26th after achieving investment attraction results worth $20.2 billion (approximately 27 trillion KRW) during his state visits to Saudi Arabia and Qatar. Including this, the total achievements over the past year from the Middle East's BIG 3?Saudi Arabia, Qatar, and the United Arab Emirates (UAE)?amount to $79.2 billion (approximately 107 trillion KRW). Notably, this visit clearly demonstrated that the Yoon administration's focus on the Middle East is not short-term but aimed at 'sustainable' economic cooperation. Since South Korea has consistently shown strength in fields such as renewable energy, advanced industries, and manufacturing on the global stage, long-term mutually beneficial cooperation with these countries is possible.

According to the Presidential Office on the 26th, during President Yoon's state visit to Qatar from the 24th to 25th (local time), a total of 12 memorandums of understanding (MOUs) and contracts were signed, resulting in export and order achievements worth $4.6 billion (6.2 trillion KRW). In particular, HD Hyundai Heavy Industries signed an LNG carrier contract worth $3.9 billion (5.2 trillion KRW) with Qatar Energy, setting a record for the largest single contract in the history of the domestic shipbuilding industry. Choi Sang-mok, Senior Secretary for Economic Affairs to the President, introduced, "From HD Hyundai Heavy Industries' perspective, this secures about half a year's worth of work, and our company's share in global LNG carrier orders this year will increase from the existing 74% to 81%."

President Yoon Suk-yeol is getting into a vehicle on the 24th (local time) to attend the Future Investment Initiative (FII) forum together with Crown Prince Mohammed bin Salman of Saudi Arabia, who visited the Riyadh Guest Palace. [Image source=Yonhap News]

Including the $15.6 billion (approximately 21 trillion KRW) investment MOUs and business contracts signed by Korean companies during President Yoon's state visit to Saudi Arabia from the 21st to 24th, the total value of MOUs and contracts signed during the Saudi Arabia and Qatar state visits reached $20.2 billion (approximately 27.2 trillion KRW). Adding the $29 billion MOUs signed during Crown Prince and Prime Minister Mohammed bin Salman Al Saud's visit to Korea in November last year and the $30 billion investment commitments made during President Yoon's state visit to the UAE in January this year, the total economic achievements over one year amount to $79.2 billion (approximately 107 trillion KRW). Notably, over 60% of the contracts and MOUs signed last November are materializing into concrete projects, which is expected to benefit the Korean economy. President Yoon and the Presidential Office plan to continuously monitor the implementation status of the economic achievements from the Saudi Arabia and Qatar visits. Senior Secretary Choi explained, "The government will immediately begin follow-up measures after this Middle East visit to ensure that MOUs and consultation results quickly translate into concrete export and order achievements."

President Yoon's recent visit is evaluated as having laid the foundation for long-term economic cooperation between South Korea and Saudi Arabia and Qatar, which are represented by 'oil money.' While Saudi Arabia and Qatar brought a Middle East boom to Korea in the 1970s through construction demand, this time they established cooperative relationships that provide essential infrastructure for future industrial development such as renewable energy, smart cities, IT, and manufacturing. For example, at the Korea-Saudi Investment Forum held on the 22nd, future industry-related contracts and MOUs were signed, including ▲ 7 in energy and power (2 contracts, 5 MOUs) ▲ 8 in infrastructure and plants (1 contract, 7 MOUs) ▲ 19 in advanced industries and manufacturing (electric vehicles, etc.) (2 contracts, 17 MOUs) ▲ 10 in new industries (1 contract, 9 MOUs) ▲ and 2 other MOUs related to financial cooperation. The MOUs and contracts signed at the Korea-Qatar Business Forum held the previous day also cover essential elements for securing stable supply chains and continuous economic cooperation, including energy (2), new industries (6), plants (1), and trade finance (1).

[Image source=Yonhap News]

In addition to economic cooperation, the strengthening of diplomatic relations with Saudi Arabia and Qatar is also considered an achievement. On the 24th (local time), President Yoon and Crown Prince Salman announced the 'Korea-Saudi Joint Statement,' expressing their will to cooperate on the development direction of bilateral relations and regional and international issues. This is the first joint statement adopted in 43 years since President Choi Kyu-hah's visit to Saudi Arabia in May 1980. The two countries confirmed the mutually beneficial nature of the Korean government's support for Saudi Arabia's 'Vision 2030' and the partnership to achieve 'Vision 2030.'

On the 25th, during a summit held at the Amari Diwan Palace, President Yoon and Sheikh Tamim bin Hamad bin Khalifa Al Thani, the Emir of Qatar, agreed to elevate Korea-Qatar relations from the existing 'comprehensive partnership' to a 'comprehensive strategic partnership.' President Yoon proposed inviting Emir Tamim as a state guest, and Emir Tamim expressed his intention to visit Korea next year. President Yoon emphasized, "I hope that this visit will serve as an opportunity for both countries to review the achievements of the past 50 years of relationship development and prepare together for 50 years of shared prosperity in the future," adding, "Korea will be a reliable partner as Qatar pursues national development through its 'National Vision 2030.'"

Particularly noteworthy is the securing of Middle Eastern allies condemning North Korea's nuclear and missile development. The Korea-Saudi joint statement announced by President Yoon and Crown Prince Salman on the 24th includes a phrase condemning "all acts violating United Nations Security Council resolutions aimed at preventing the proliferation of weapons of mass destruction, including nuclear and ballistic programs and weapons transfers." Although some Middle Eastern countries such as Iran and Syria maintain close relations with North Korea through arms transactions, if Saudi Arabia, the leader of Islam, and wealthy Qatar voice the same stance as Korea, it is expected to create a friendly atmosphere toward Korea within the Middle East. Emir Tamim also expressed opposition to North Korea's nuclear and missile provocations by telling President Yoon the previous day, "We support Korea's policy on the Korean Peninsula."

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