Saudi Arabia and South Korea sign defence, energy agreements worth $30 billion

Saudi Arabia and South Korea sign defence, energy agreements worth $30 billion

Saudi Arabia will make an investment of about $30 billion in South Korean companies, with the leaders of both the countries pledging stronger ties on Thursday in the fields of energy, defence, and construction.

South Korean President Yoon Suk-yeol held talks in Seoul with Saudi Arabia’s Crown Prince Mohammed bin Salman, who arrived on Thursday from Bali, Indonesia, where both the leaders attended the summit of Group of 20 (G20) major economies.

Prince Mohammed underlined the role of South Korean companies in the development of Saudi Arabia’s national infrastructure over the years and wanted to see stronger cooperation with the Asian country.

Yoon said in a statement that he expected to see the South Korean companies’ participation in projects such as the NEOM economic zone and smart city in Saudi Arabia.

Earlier, South Korea’s industry ministry in a statement said companies such as Samsung C&T Corp and POSCO Holdings Inc signed over 20 agreements with Saudi counterparts in fields such as energy cooperation, railways, chemicals, pharmaceuticals, and gaming.

Among the new agreements signed, Korea Electric Power Corp (KEPCO) and four other Korean firms signed a memorandum of understanding with Saudi Arabia’s Public Investment Fund to build and operate a hydrogen and ammonia production plant in the kingdom. The plant is expected to produce 1.2 million tonnes of green hydrogen and ammonia annually.