Korea-Saudi 'Business Council' Held... Discussions on Cooperation in Infrastructure and Energy

On the 17th, the Korea Chamber of Commerce and Industry Hosts 'Korea-Saudi Business Council' in Seoul
Discussion on Investment Plans for New Industries such as Carbon Neutrality and Space to Prepare for Future Climate Change

Seoul Jung-gu Korea Chamber of Commerce and Industry. / Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Jeong Dong-hoon] The Korea Chamber of Commerce and Industry (KCCI) jointly held the 'Korea-Saudi Business Council' on the 17th at the Chamber of Commerce building with the Saudi Chamber of Commerce.

This event, held on the occasion of Saudi Crown Prince Mohammed bin Salman's visit to Korea, is a follow-up to the business forum held in Saudi Arabia in January this year, marking the reunion of businesspeople from both countries in Seoul after 10 months.

In fact, Korea has been selected as one of the five key partner countries for Saudi Arabia's 'Saudi Vision 2030' plan through its capabilities in infrastructure, construction, digital, and bio sectors. Especially, since both sides have great interest in national infrastructure construction cooperation such as NEOM City and the Red Sea project, it is expected to greatly revitalize the investment environment between the two countries, which has been sluggish due to COVID-19. NEOM City is an eco-friendly residential and industrial city approximately 44 times the size of Seoul, consisting of a 170 km long and 200 m wide glass wall.

At the event, the Korean side was represented by Acting Chairman Kim Dong-wook of the Economic Cooperation Committee (Vice President of Hyundai Motor Company), along with Kim Yong-seok, CEO of Lotte Fine Chemical, Ahn Jae-hyun, President of SK Discovery, Ahn Jae-hoon, Vice President of SK Bioscience, Woo Kwon-sik, Managing Director of Hyundai Heavy Industries, and Park Tae-young, Managing Director of Hyosung Heavy Industries.

The Saudi side included Fahad Saad Walan, Chairman of the Economic Cooperation Committee (Chairman of Walan Trading Group), Lina Alqatani, Chairwoman of ATQEN, Amer Alazmi, Vice Chairman of Al-Fana, Ahmed Atieh, Vice Chairman of Atieh Group, and about 40 businesspeople from both countries.

At the opening Business Council event, Acting Chairman Kim Dong-wook of the Korea-Saudi Economic Cooperation Committee (Vice President of Hyundai Motor Company) and Fahad Al Walan, Chairman of the Saudi Economic Cooperation Committee, expressed their expectations for bilateral cooperation in their greetings and urged the creation of new business opportunities.

Kang Moon-soo, head of the Africa and Middle East team at the Korea Institute for International Economic Policy, who spoke at the event, suggested that Korea-Saudi economic cooperation should diversify from the traditional energy and construction sectors to climate change, digital, and bio sectors in response to emerging issues such as green and digital transformation and climate change.

Kang said, "So far, Korea's construction orders in Saudi Arabia have reached about $155.7 billion as of January this year, and Korean companies have a strong willingness to participate in large-scale construction projects such as NEOM City and the Red Sea project," adding, "With Saudi Aramco becoming the largest shareholder of S-Oil, active energy trade between Korea and Saudi Arabia, and the launch of the Korea-Saudi Vision 2030 Committee, the two countries are building a mutually beneficial relationship."

He continued, "Recently, as climate change has become an important agenda, both Korea and Saudi Arabia have declared carbon neutrality and are striving to expand the use of renewable energy such as hydrogen. Accordingly, mutual cooperation for energy diversification should be conducted more closely," and suggested, "Saudi Arabia is actively investing in new industries such as entertainment, aerospace, bio, tourism, and leisure, so the Korea-Saudi cooperation relationship also needs to diversify."

Following the Business Council, the 'Korea-Saudi Investment Forum' featured a memorandum of understanding ceremony for bilateral cooperation and investment cooperation plans, followed by a lively panel discussion among companies from both countries on future energy, global supply chains, and innovation and growth of future generations.

Lee Sung-woo, Director of the International Trade Headquarters at KCCI, said, "This year marks the 60th anniversary of diplomatic relations between Korea and Saudi Arabia. The two countries have maintained a long-standing trust and friendly relationship, and their strengths are complementary to each other," adding, "I hope cooperation will soon expand not only in infrastructure construction, which is of great interest in Korea, but also in various industries such as space and tourism, where the mutually beneficial relationship can continue for future generations."