"Grab the 668 Trillion Oil Money" CEOs Personally Launch Sales Efforts

Lee Jae-yong, Chung Eui-sun, and Choi Tae-won Meet Crown Prince Bin Salman
Pursuing Comprehensive Orders for NEOM City... Sharing New Business Plans

▲"I'm the Best"...Mohammed bin Salman Al Saud Prince (Photo by AP Yonhap News)

[Asia Economy Reporters Oh Hyung-gil, Sung Ki-ho, Moon Chae-seok] On the 17th, Crown Prince Mohammed bin Salman of Saudi Arabia, who visited Korea, will meet with the heads of domestic business groups to discuss large-scale business cooperation. The heads of major groups will personally engage in sales efforts for projects worth $500 billion (668 trillion KRW) with Saudi Arabia, which is emerging as a "land of opportunity."

Through this meeting, it is expected to serve as an opportunity to share new business ideas and build trust, along with investment and business agreements (MOUs) related to the new city construction project "NEOM City" promoted by Crown Prince bin Salman.

Crown Prince bin Salman, whose wealth exceeds 2 trillion dollars (2,800 trillion KRW), is currently the most powerful figure in Saudi Arabia overseeing the NEOM City project. NEOM City aims to reduce dependence on the oil industry by using 100% eco-friendly energy sources such as hydrogen and solar power. Cooperation is anticipated in urban infrastructure, energy, and future businesses.

According to the business community, major conglomerate heads including Chairman Lee Jae-yong, Chairman Chung Eui-sun of Hyundai Motor Group, Chairman Chey Tae-won of SK Group, and Vice Chairman Kim Dong-kwan of Hanwha Group are scheduled to have a tea-time meeting with Crown Prince bin Salman at Lotte Hotel in Sogong-dong, Seoul, in the afternoon.

Chairman Lee is expected to actively pursue winning orders for the NEOM City project, leveraging his personal friendship with the Crown Prince. It is reported that he even submitted a non-appearance statement to the court for a scheduled trial on the same day to attend this meeting.

Samsung Electronics is cautious as the specific investment scale, order status, and collaboration business sectors have not yet been finalized. However, the areas likely to be discussed with the Crown Prince include businesses applicable to smart city implementation such as 5th generation (5G) communication, artificial intelligence (AI), and the Internet of Things (IoT), with investment possibly focusing on communication equipment.

A business insider familiar with Samsung said, "It is uncertain whether Chairman Lee will have a private meeting with the Crown Prince even briefly," adding, "Just as after the 'Seungjiwon meeting' three years ago, when discussions on technology, industry, construction, energy, and smart city cooperation were held in Saudi Arabia two to three months later, this time too, things may proceed gradually and step by step."

Chairman Chey is likely to discuss investments in the eco-friendly energy sector. In addition, collaboration is expected to be sought around the so-called 'BBC' businesses: battery, bio, and semiconductor. This is because fostering eco-friendly energy projects such as small modular reactors (SMRs) for carbon neutrality is essential in national infrastructure construction.

In the bio sector, entry into bio-pharmaceutical businesses such as SK Bioscience and SK Biopharm is also anticipated. As the co-chairman of the joint committee for the 2030 Busan World Expo bid, Chairman Chey is expected to wish for a fair competition with Saudi Arabia in securing the Expo.

The most attention is focused on the meeting with Chairman Chung. Since Hyundai Motor Group's future growth engines?eco-friendly smart cities, robotics, future mobility, and hydrogen mobility?overlap significantly with NEOM City's urban model, the possibility of cooperation between the two sides is considered higher than ever.

Hyundai Motor Group possesses comprehensive capabilities for smart city construction, including housing, plants, robotics, advanced air mobility (AAM), and hydrogen mobility. In robotics, competitive technology has been secured centered on Boston Dynamics, and Hyundai Rotem and Hyundai Glovis can participate in building hydrogen infrastructure.

Cooperation with Hanwha is expected to be explored in areas such as solar power and urban air mobility (UAM). Additionally, it is reported that defense industry export contracts with Saudi Arabia will be signed to coincide with Crown Prince bin Salman's visit. The weapons Hanwha is likely to export to Saudi Arabia include the multiple rocket launcher Cheonmu and the K9 self-propelled howitzer. Cooperation plans on various issues such as Saudi nuclear power development and shipbuilding and plant-related projects are also likely to be on the table.

A business community official said, "The NEOM City project promoted by the Crown Prince is a symbolic project as much as it is large-scale, and the participation of our companies itself will be very meaningful," adding, "Since this is the first meeting with business leaders in three years since the 2019 visit, various cooperation plans are expected to be discussed."