President Yoon Holds Summit in Abu Dhabi... Elevates to 'Special Strategic Partnership'
MOU Signed Focusing on Four Core Areas: Nuclear Power, Energy, Investment, and Defense Industry
[Abu Dhabi=Asia Economy Reporter Baek Kyunghwan] On the 15th (local time), President Yoon Suk-yeol responded to the United Arab Emirates (UAE)'s $30 billion (approximately 40 trillion KRW) investment decision by saying, "We will meticulously manage it to play a significant role in sustainable mid- to long-term development." UAE President Mohamed bin Zayed Al Nahyan stated, "We decided to invest based on trust in South Korea, which keeps its promises under any circumstances," and signed 13 memorandums of understanding (MOUs) focusing on four core areas: nuclear power, energy, investment, and defense industry. The two leaders also agreed to elevate bilateral relations to the highest level of cooperation as a "special strategic partnership."
The Korea-UAE summit was held at the presidential palace, Qasr Al Watan, in the capital Abu Dhabi. Starting at 11:30 a.m. (4:30 p.m. Korean time), the agenda included an expanded meeting for about an hour, an MOU signing ceremony, a private meeting, and an official luncheon. Attendees included government officials as well as business leaders such as Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Eui-sun, and SK Group Chairman Choi Tae-won (also Chairman of the Korea Chamber of Commerce and Industry).
President Yoon Suk-yeol, on a state visit to the United Arab Emirates (UAE), is shaking hands and conversing with President Mohamed bin Zayed Al Nahyan during a state luncheon held at the Abu Dhabi Presidential Palace on the 15th (local time). [Photo by the Office of the President]
Before the meeting, President Yoon said, "I expect this to be an important starting point to develop the 'special strategic partnership' to the highest level by further strengthening strategic cooperation not only in the four core areas of nuclear power, energy, investment, and defense but also in future cooperation fields such as new industries, health and medical care, and cultural and human exchanges." President Mohamed responded, "I am very pleased that you visited the UAE as your first state visit since taking office," and added, "We strongly hope to further develop the strategic partnership with South Korea."
On this day, the two leaders signed a total of 13 agreements, including joint entry into third countries for nuclear power plants, the Net Zero Acceleration Program, a voluntary carbon market partnership involving investment in a carbon trading platform and the establishment and operation of a carbon offset certification center, international joint development of multipurpose transport aircraft, hydrogen production, storage, transportation, and utilization within cities, cooperation in water resources, administrative agreements under the Korea-UAE nuclear agreement, and financial cooperation between the Export-Import Bank of Korea and Abu Dhabi National Energy Company (TAQA).
In the much-anticipated nuclear sector, the two countries agreed to cooperate on joint entry into third countries for nuclear power plants, nuclear fuel, and small modular reactor (SMR) technology development. In the energy sector, ADNOC crude oil was secured and sold at the Korea National Oil Corporation's Yeosu base, allowing Korea to exercise a right of first refusal on contracted crude oil volumes in case of supply crises.
In the defense sector, they agreed to promote information exchange such as defense industry technology transfer and to cooperate on joint development of transport aircraft as a mid- to long-term collaboration. In the investment sector, Mubadala, the UAE’s second-largest sovereign wealth fund, and the Korea Development Bank will jointly invest to support the growth of promising Korean companies. They also agreed to expand cooperation projects and mutual investments to enhance SME and startup collaboration between the two countries. A presidential office official added, "We expect this to be an important starting point to develop the Korea-UAE 'special strategic partnership' to the highest level."
This agreement is linked to the $30 billion investment planned for the UAE. A senior presidential office official explained that the agreements signed between Korea and the UAE form the foundation for cooperation to implement the $30 billion investment. Notably, this is effectively the largest scale of overseas investment by the UAE to date. Considering that Korea's overseas investment attraction last year was $30.5 billion, the UAE's investment is expected to have a positive impact on the domestic economy for several years to come. The presidential office official also emphasized, "In terms of investment content and scale, this is an important achievement that further strengthens bilateral relations in the economic sector," adding, "Investments under this agreement are expected to target new growth, new technologies, and mid- to long-term strategic investments."
The reason President Yoon chose the UAE as his first overseas trip this year and the first destination in the Middle East is that South Korea’s diplomatic focus is on economic revitalization and export expansion. The presidential office anticipates that through this visit, the scope and depth of cooperation with the UAE will be further expanded through multiple agreements.
President Yoon will stay in the UAE until the 17th, visiting the Ark Unit, a symbol of Korea-UAE military cooperation, to encourage Korean troops, and also visiting the Barakah nuclear power plant, an overseas nuclear power plant contracted by Korea. Additionally, he is expected to present an economic cooperation vision through business forums involving companies from both countries. At a Korean community meeting the previous evening, President Yoon emphasized, "The UAE, preparing for the post-oil era, is the optimal partner," and stated, "I will use this state visit as a stepping stone for a groundbreaking leap toward future joint prosperity."
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