Korea to Join UAE's $20 Billion AI Project...$15 Billion Defense Export Potential (Comprehensive)

Announcement of Korea-UAE Summit Achievements: Participation in the 'Stargate Project'
"Agreement Reached on Establishing a K-City in the UAE"
"Expected Outcomes in Defense, AI, and K-Culture Worth 150 Trillion Won"

The government has decided to participate in the 'Stargate Project,' a $20 billion (30 trillion won) artificial intelligence (AI) infrastructure development initiative led by the United Arab Emirates (UAE). The two countries also agreed to pursue $15 billion in defense industry cooperation, as well as joint entry into third-country markets in nuclear power and renewable energy sectors.

Yonhap News Agency

Kang Hoonshik, Chief Presidential Secretary, and Ha Jeongwoo, Presidential Secretary for AI Future Planning, announced at a briefing in Abu Dhabi, UAE, on the afternoon of the 18th (local time) that President Lee Jaemyung and UAE President Mohamed bin Zayed Al Nahyan had reached an agreement on these areas of cooperation during their summit meeting.

During the summit, the two countries agreed that Korean companies would participate in the 'UAE Stargate' project, which is being promoted by the UAE, to build AI and energy infrastructure. With an initial investment of 30 trillion won, this will secure opportunities for Korean companies, including startups, to participate in overseas projects.

Secretary Ha explained, "We will construct large-scale data centers and establish a power grid utilizing nuclear power, gas, and renewable energy to ensure stable operations," adding, "We have also agreed to expand cooperation to the semiconductor supply chain."

The two countries also agreed to strengthen cooperation in the field of physical AI, with the first joint project applying physical AI to port logistics. Busan Port in Korea and Khalifa Port in Abu Dhabi, UAE, were selected as pilot sites. Secretary Ha stated, "Both countries will promptly establish working groups in each field, consisting of government agencies, companies, and specialized institutions, within this year to achieve tangible results."

The two countries will also establish a collaborative model for a complete value chain in the defense industry. They plan to pursue a cooperation model covering joint development, local production, and joint export to third countries, while also supporting the UAE in acquiring independent operational capabilities for Korean defense equipment. Through this cooperation model, Korea has secured the potential for more than $15 billion in defense exports.

Chief Secretary Kang explained, "This not only increases the chances for our defense companies to win contracts, but also establishes a bridgehead for entering third-country markets, including not only the Middle East and Africa but also Europe and North America."

Yonhap News Agency

Furthermore, the two countries reached a consensus on the need to go beyond cooperation in the energy sector and jointly enter third-country markets. To this end, they agreed to expand the scale of their representative joint project, the crude oil storage project, from the current 4 million barrels to 10 million barrels, with the possibility of further increasing it two to three times in the future. The UAE also requested to identify concrete projects with Korean companies in areas such as liquefied natural gas (LNG), liquefied petroleum gas (LPG), ammonia, and shipbuilding.

In addition, Korea Electric Power Corporation and Emirates Nuclear Energy Corporation signed a memorandum of understanding (MOU) for joint entry into third-country nuclear power markets. Secretary Ha stated, "Considering that the Barakah Nuclear Power Plant was a project worth about $20 billion, we expect to secure a next-generation overseas business model that surpasses Barakah, through package projects covering follow-up nuclear plants, small modular reactors (SMRs), hydrogen and ammonia, CCUS, renewable energy, and smart plants."

Results of discussions on the cultural industry were also introduced. Chief Secretary Kang said, "The two countries agreed to establish a 'K-City' in the UAE and to further develop discussions on this initiative," explaining that "K-City will serve as a platform for promoting cooperative projects in advanced industries and the cultural sector." He added, "The economic impact of K-Culture generated by K-City is difficult to quantify, and there are projections that its market value will surpass $70 billion by 2030."