Won Hee-ryong: "26 MOUs with Saudi Arabia Expected to Lead to Orders as Early as Next Month"

"No Cutthroat Competition Among Domestic Companies... One Team Korea"

On the 21st, Won Hee-ryong, Minister of Land, Infrastructure and Transport, met with reporters at the Ministry of Land, Infrastructure and Transport press room in the Government Sejong Complex to answer questions related to the recent real estate market.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, said on the 21st that some of the 26 memorandums of understanding (MOUs) signed between South Korea and Saudi Arabia during Crown Prince Mohammed bin Salman's visit to Korea could lead to actual orders as early as December.

On the same day, Minister Won met with reporters at the Ministry of Land, Infrastructure and Transport press room in the Government Complex Sejong and, when asked about the prospects for follow-up actions on the numerous MOUs signed between South Korea and Saudi Arabia, he said, "As early as December, or at the latest January or February, we expect these MOUs to turn into actual orders or agreements that go beyond MOUs."

During his visit on the 17th, Saudi Arabia's de facto ruler Crown Prince bin Salman met with major domestic business leaders including Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, and Hyundai Motor Group Chairman Chung Eui-sun for about 20 hours. They extensively discussed economic cooperation plans, including Saudi Arabia's mega new city project 'NEOM City,' and signed a total of 26 contracts and MOUs across various industrial sectors between major Korean companies and Saudi government agencies and enterprises.

However, since MOUs are not legally binding, there is skepticism about whether they will translate into substantial economic effects.

Minister Won said, "Previous administrations such as the Park Geun-hye and Moon Jae-in governments also signed many MOUs with Saudi Arabia, but only about 50% of them led to formal contracts," adding, "We will keep past cases in mind and strive to achieve tangible results."

He also mentioned that cooperation with Saudi Arabia will extend beyond the economic sector to include tourism, culture, defense, and other broad areas.

In this process, Minister Won particularly emphasized 'One Team Korea.' He pointed out, "Since 2010, it has been difficult to find a Korean company in the Middle East that has not suffered losses," noting, "There were various variables such as the financial crisis, but internal competition among domestic companies was also a major cause." He added, "Saudi Arabia is a partner with extensive experience in placing orders with companies worldwide. We must not repeat past mistakes such as disorganized coordination leading to cutthroat competition among our companies or revealing each other's weaknesses to the client."

Furthermore, Minister Won announced plans to actively enter the Indonesian market.

He said, "Indonesia, with a population of 280 million and abundant natural resources such as nickel and coal, is a country showing high growth surpassing even China," and added, "We will cooperate in various fields including capital relocation, smart cities, public servant housing, railway transportation systems, and electric vehicle batteries."

Earlier, on the 14th, Minister Won visited Bali, Indonesia, and requested the Indonesian government's interest to encourage active participation of Korean companies in Jakarta's railway and new capital projects.