President Lee's Three-Day Visit to UAE Yields Major Outcomes
Chief Secretary Kang Hoonshik: "Exceeds 100 Billion Dollars"
Participation in 30 Trillion Won Stargate Project
Expectations for 15 Billion Dollar Defense Industry Orders and Exports
Meeting with Korean and UAE Business Leaders Planned
Samsung Electronics Chairman Lee Jayyong and Others Expected to Attend
President Lee Jae-myung, who is on a state visit to the United Arab Emirates (UAE), is greeting President Mohammed bin Zayed Al Nahyan at the Presidential Palace in Abu Dhabi on the 18th (local time). Photo by Yonhap News
The Office of the President announced that the economic added value expected from President Lee Jaemyung's three-day state visit to the United Arab Emirates (UAE) is estimated to reach 100 billion dollars. This figure is calculated by converting the market value of anticipated orders and exports in artificial intelligence (AI) and defense industries, as well as the growth potential of the cultural industry. On November 19 (local time), President Lee and business leaders from both countries plan to further strengthen economic cooperation at a 'Business Roundtable'.
Korea to Participate in UAE Stargate Project Worth 30 Trillion Won
Kang Hoonshik, Chief Secretary to the President, and Ha Jungwoo, Chief of AI Future Planning, announced at a briefing in Abu Dhabi on November 18 that President Lee Jaemyung and UAE President Mohammed bin Zayed Al Nahyan had agreed on these cooperation measures during their summit. The cooperation plan includes 20 billion dollars for AI infrastructure, 15 billion dollars for defense industry orders and exports, and 70.4 billion dollars for K-culture. Kang stated, "The expected outcomes exceed 100 billion dollars."
In the AI sector, the Korean government has decided to participate in the 'Stargate Project' currently being promoted in the UAE. The Stargate Project is the world's largest AI infrastructure initiative, with initial investments expected to exceed 30 trillion won. Korea will be involved in the construction of large-scale AI data centers, the establishment of power grids utilizing nuclear, gas, and renewable energy for stable operations, and cooperation on semiconductor supply chains.
President Lee Jae-myung is holding a one-on-one summit with Mohammed bin Zayed Al Nahyan, President of the UAE, during his visit to the Abu Dhabi Presidential Palace on the 18th (local time). Photo by Yonhap News
Ha explained, "This will create new business opportunities for technology-driven companies in Korea," adding, "A significant portion of the investment will translate into revenue for our companies." He further noted, "Since Korea and the UAE have agreed to jointly execute the project, our companies will be able to participate in a much more prioritized manner."
The two countries will also strengthen cooperation in the field of physical AI. The first joint project will apply physical AI to port logistics. Busan Port in Korea and Khalifa Port in Abu Dhabi, UAE, have been selected as pilot project sites. Ha stated, "Both countries have agreed to quickly establish working groups for each sector, consisting of government, corporate, and specialized institutions, within the year to achieve tangible results."
Potential for 15 Billion Dollars in Defense Industry Orders... Joint Exports to Third Countries Also Pursued
In the defense sector, the two countries agreed to move beyond simple exports and purchases to pursue joint development, local production, and joint exports to third countries. In addition to the export of Cheongung-II and K-9 self-propelled howitzers to the UAE, this means that Korean companies will have opportunities to participate in various industries, including the establishment of local defense infrastructure. Kang emphasized, "By establishing this comprehensive value chain cooperation model, the potential for Korean defense companies to secure defense export contracts worth more than 15 billion dollars will be significantly increased."
In particular, the UAE has reportedly shown great interest in Korea's defense industry. During the summit, the UAE side is said to have requested even deeper defense cooperation. An official from the Office of the President told reporters, "We have clearly confirmed the demand for (defense) cooperation between the two countries." Kang also expressed optimism, saying, "Today, the UAE President made an even greater proposal, which we will review."
Ha Jungwoo, Chief of AI Future Planning, is explaining following a briefing by Kang Hoonshik, Chief Secretary, on the achievements of President Lee Jae-myung's Special Envoy for Strategic Economic Cooperation at the Korean Press Center in a hotel in Abu Dhabi, United Arab Emirates (UAE) on the 18th. Photo by Yonhap News
Furthermore, the two countries reached a consensus on the need to go beyond cooperation in the energy sector and jointly enter third-country markets. To this end, they agreed to expand the scale of their representative joint project, the crude oil storage business, from the current 4 million barrels to 10 million barrels, with plans to further increase it by two to three times in the future. The UAE also requested that Korean companies explore concrete projects in areas such as liquefied natural gas (LNG), liquefied petroleum gas (LPG), ammonia, and shipbuilding.
In addition, Korea Electric Power Corporation and Emirates Nuclear Energy Corporation signed a memorandum of understanding (MOU) for joint entry into third-country nuclear power markets. Ha stated, "Given that the Barakah nuclear power plant was a project worth about 20 billion dollars, we expect to secure a next-generation overseas business model that surpasses Barakah through package projects that include follow-up nuclear plants, small modular reactors (SMRs), hydrogen and ammonia, carbon capture, utilization and storage (CCUS), renewable energy, and smart plants."
The results of discussions on the cultural industry were also introduced. Kang explained, "The two countries have agreed to establish 'K-City' in the UAE and will further develop these discussions," adding, "K-City will serve as a platform for promoting cooperation in advanced industries and the cultural sector." He further stated, "The economic impact of K-culture generated based on K-City is difficult to quantify," and noted, "It is projected that by 2030, the market value will exceed 70 billion dollars."
President Lee to Meet Korean and UAE Business Leaders on November 19... Lee Jayyong Also to Attend
Meanwhile, on November 18, the leaders of Korea and the UAE adopted a joint declaration titled "A New Leap Forward for 100 Years of Partnership Between Korea and the UAE." The declaration specifies concrete cooperation measures by industry and sector, citing the Barakah nuclear power plant, which Korea won the contract for, as an example in the nuclear sector. The two leaders agreed to expand the 'Barakah model' to jointly enter global markets and to cooperate on improving nuclear power plant efficiency and workforce development based on artificial intelligence (AI) under a 'Comprehensive Strategic Energy Partnership'.
President Lee Jae-myung, who is on a state visit to the United Arab Emirates (UAE), is entering the meeting room for the expanded Korea-UAE talks with Mohammed bin Zayed Al Nahyan, President of the UAE, at the Abu Dhabi Presidential Palace on the 18th (local time). Photo by Yonhap News
President Lee plans to continue discussions on cooperation measures at the Business Roundtable the following day, November 19. The event will be attended by about 50 business leaders from Korea and the UAE. On the Korean side, attendees are expected to include Samsung Electronics Chairman Lee Jayyong, Hyundai Motor Group Chairman Chung Euisun, Hanwha Group Vice Chairman Kim Dongkwan, and LG Electronics CEO Cho Joo-wan.
The meeting will focus on future cooperation measures in key industries of both countries, including advanced industries, energy, infrastructure, defense, and culture. The Office of the President explained, "Through this Business Roundtable, we expect that the scope of economic cooperation between Korea and the UAE will be further expanded as the two countries embark on a journey of partnership for the next 100 years."
On the afternoon of the same day, President Lee also plans to visit and encourage the members of the Akh Unit stationed in the UAE. After completing this schedule, President Lee will conclude his three-day state visit to the UAE and travel to Cairo, Egypt.
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