South Korean and Saudi Arabian leaders signed investment agreements worth at least $30 billion with South Korean companies in a major push to strengthen ties between the two nations, according to reports.
The deals were signed in the fields of energy, defense and construction.
South Korean President Yoon Suk-yeol held talks with Crown Prince Mohammed bin Salman in Seoul, and emphasized that he hoped the two nations can expand cooperation, calling the Middle Eastern country a key partner for its economy and energy security, Reuters reports.
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Among the deals announced was an investment of $7 billion by Saudi Aramco into a project to produce petrochemicals from crude oil at its South Korean affiliate S-Oil Corp’s refining complex in the port city of Ulsan. The project, named Shaheen, is the Saudi company’s biggest investment in South Korea and will mark the first commercial use of Aramco and Lummus technology to produce chemicals from crude, Reuters reports, citing an Aramco statement.
“The global petrochemical landscape is rapidly evolving with demand growth anticipated to accelerate, driven in part by rising consumption from Asia’s emerging economies,” Aramco’s chief executive officer, Amin Nasser, said.
South Korea’s industry ministry said companies including Samsung C&T Corp and POSCO Holdings Inc had signed over 20 agreements with Saudi counterparts in fields such as energy cooperation, railways, chemicals, pharmaceuticals and gaming.
The report also said that Saudi Venture Capital Co. had agreed to establish seven specialized funds.
Additionally, Korea Electric Power Corp (KEPCO) and four other Korean firms signed a MOU with Saudi Arabia’s Public Investment Fund to build and operate a hydrogen and ammonia production plant in the Saudi kingdom, the company said. A source with knowledge of that deal told Reuters the project will be worth about $6.5 billion.
