Yoon Secures $21 Trillion Oil Money... Today Targets Qatar LNG and Infrastructure

50th Anniversary of Diplomatic Relations: President Yoon's State Visit to Qatar
Qatar Aims to Reduce Energy Dependence, Expand Cooperation Areas
Will the 'Middle East=Construction' Paradigm Shift? Diversifying Communication Channels

President Yoon Suk-yeol, who secured $15.6 billion (21 trillion KRW) worth of 'oil money' during his state visit to Saudi Arabia, will move to Qatar on the 24th (local time) to kick off efforts to target the LNG (liquefied natural gas) supply chain. In particular, he plans to pursue additional cooperation in infrastructure projects based on major landmark projects in Qatar such as the Qatar National Museum, Lusail Expressway, and Doha Metro.

President Yoon arrived in Doha, Qatar, in the afternoon and resumed his Middle East state visit schedule. Qatar is South Korea's second-largest LNG supplier and will mark the 50th anniversary of diplomatic relations next year.

The Presidential Office is focusing on the economic cooperation potential between South Korea and Qatar. For South Korea, Qatar is the second-largest LNG importer after Australia, the eighth-largest crude oil importer, and the eighth-largest overseas construction contract market, making it a key partner in energy and infrastructure sectors. Economic Chief Secretary Choi Sang-mok also stated, "Qatar is one of the world's largest LNG exporters" and "along with Saudi Arabia, it is a key player in the global energy market."

President Yoon Suk-yeol and First Lady Kim Keon-hee, following their state visit to Saudi Arabia, arrived on the 24th (local time) at the Royal Terminal of Hamad International Airport in Doha aboard Air Force One, their official aircraft.
[Photo by Yonhap News]

Like Saudi Arabia, Qatar announced the 'Qatar National Vision 2030' in 2008 to reduce its high dependence on energy and accelerate economic diversification. The 'Qatar National Vision 2030' includes ▲private-led growth centered on knowledge-based high value-added industries ▲establishment of food security and securing water resources and clean energy sources ▲strengthening healthcare and education systems.

The reason why additional cooperation between the shipbuilding and construction industries is highly likely on the occasion of President Yoon's state visit is also here. Chief Secretary Choi mentioned, "Last year, our shipbuilding industry signed contracts to build a total of 54 LNG carriers with Qatar, and our shipping industry signed the first long-term LNG transportation contract, expanding cooperation across the entire LNG supply chain."

The foundation for economic cooperation is already in place. The Economic and Technical Trade Cooperation Agreement was signed in 1984, followed by the Investment Protection Agreement in 1999, the Air Transport Agreement in 2005, and the Double Taxation Avoidance Agreement in 2007. Although trade volume sharply declined due to the global economic downturn in 2009, it increased after 2011 thanks to a construction boom, with bilateral trade reaching $26.6 billion (35.8 trillion KRW) in 2014 due to increased exports and imports of energy such as LNG and crude oil.

Local corporate activities are also active. A total of 17 companies, including Hyundai Construction, Samsung C&T, Samsung Engineering in infrastructure and energy sectors, as well as STX Engine and HSD Engine related to LNG ship engine maintenance, are operating in Qatar.

However, President Yoon plans to build new partnerships beyond the existing core cooperation areas such as LNG and supply chains. In an interview with Qatar News Agency the day before, he said, "Cooperation has so far centered on energy and construction, but we want to expand it to investment, defense, agriculture, culture, and human exchanges," and "to this end, we will diversify strategic communication channels between the two countries."

Specifically, the areas include ▲investment ▲defense ▲agriculture ▲culture ▲human exchanges. To enable the citizens of both countries to enjoy more tangible benefits, the economic delegation on this visit to Qatar includes over 60 Korean companies covering various new industries such as digital, bio, smart farms, and cultural content.

Through this, there is also a plan to reorganize the economic cooperation framework of 'Middle East = construction' in Qatar following Saudi Arabia. The 46 contracts and MOUs signed through the investment forum between companies and institutions of both countries in Saudi Arabia include ▲7 in energy and power (2 contracts, 5 MOUs) ▲8 in infrastructure and plants (1 contract, 7 MOUs) ▲19 in advanced industries and manufacturing (electric vehicles, etc.) (2 contracts, 17 MOUs) ▲10 in new industries (1 contract, 9 MOUs) ▲and financial cooperation, showing diversity.

Attention is also drawn to the implementation plan of the 'diversification of strategic communication channels between the two countries' that President Yoon announced ahead of his visit to Qatar. Regarding relations with Saudi Arabia, the South Korean government confirmed its support for Saudi Arabia's 'Vision 2030' and the mutually beneficial nature of the partnership to achieve 'Vision 2030.' Based on this, the purpose and scope of work of the top-level 'Strategic Partnership Committee' were systematically defined, establishing an institutional foundation for promoting strategic cooperation.

Concrete outcomes are expected to be concentrated on the second day of the state visit, the 25th. First, President Yoon will hold a summit with Qatar's Emir Tamim bin Hamad Al Thani and attend a state banquet. Then, he will encourage participants at the Korea-Qatar Business Forum attended by 300 businesspeople from both countries. As the final schedule in Qatar, he will visit 'Education City,' Qatar's self-proclaimed education hub in the Middle East, and engage in dialogue with young Qatari leaders.