S. Korea, Saudi Arabia discuss investment expansion during ministerial talks

Industry Minister Lee Chang-yang and Saudi Arabia's Investment Minister Khalid Al-Falih (Yonhap)

South Korea and Saudi Arabia agreed Thursday to deepen economic ties and boost business cooperation in various areas, including smart city, hydrogen and bio industries, Seoul's industry ministry said.

Industry Minister Lee Chang-yang and Saudi Arabia's Investment Minister Khalid Al-Falih reached the consensus during their talks in Seoul, according to the Ministry of Trade, Industry and Energy.

During the talks, Lee proposed enhanced bilateral cooperation, as large-scale investment has been made in advanced industry fields in Saudi Arabia, including its Neom project.

The mega project seeks to build a new city to make it a hub for smart city technologies and a major tourist destination in the northwestern province of Tabuk.

The two sides agreed to beef up the bilateral Vision 2030 Committee by adding more subcommittees to enhance economic and business ties and push for various joint projects.

The committee, launched in 2017, has served as a major platform of cooperation on manufacturing, batteries and a wide range of sectors, the ministry said.

"The ministers shared the assessment that it is timely for the two nations to push for new projects in auto, bio, smart city and gaming industries. They agreed to continue to explore ways to boost cooperation in such new industries as bio, hydrogen, gaming, entertainment and agricultural products sectors," the ministry said in a release.

Earlier in the day, the two countries held a business workshop in Seoul, during which Riyadh asked for South Korea's active participation in its major infrastructure, energy and other related projects.

Saudi Arabia also explained plans to draw $10.7 billion worth of investment to become a key player of the global supply chains by offering various incentives.

The event brought together some 10 major Saudi firms, including chemical manufacturing firm SABIC and industry investment company Dussur, as well as around 90 South Korean firms, according to the ministry.

Earlier this week, South Korea and Saudi Arabia also discussed signing two memorandums of understanding (MOUs) on mobility and infrastructure development, as Seoul's Land Minister Won Hee-ryong met with his Saudi Arabian counterpart, Saleh bin Nasser Al-Jasser, during his trip to the kingdom.

Saudi Arabia is South Korea's top trading parner among Middle Eastern nations. Bilateral trade between the two nations stood at US$27.59 billion in 2011, up from $19.28 billion the previous year, according to government data.

Saudi Arabia is the No. 1 supplier of oil for South Korea by accounting for 29.3 percent of Seoul's total crude oil imports in 2021.