Korea plans high-level visit to Saudi Neom City

Saudi Neom City. [Courtesy of Neom]

The South Korean government is reportedly planning a visit to Saudi Arabia next month alongside leaders of major conglomerates, including Samsung, SK, and Hyundai Motor, as part of a concerted effort to secure business orders related to Neom City, the kingdom’s mega city development.

According to sources on Wednesday, Won Hee-ryong, the Minister of Land, Infrastructure, and Transport, and key business leaders including Lee Jae-yong, Chairman of Samsung Electronics, as well as Choi Tae-won, Chairman of SK Group, are considering visits to Saudi Arabia and other Middle Eastern countries in the middle of October.

The government had previously planned a visit to Saudi Arabia with CEOs of major Korean builders, but the plan is now upgraded to include executives from the top ten major conglomerates, signaling a strong commitment to supporting the Neom City project. The move is also interpreted as the government’s intention to provide extensive support for Korean companies in the fierce competition for massive business orders linked to the project.

Saudi Arabia is currently undertaking the Neom City project, investing $500 billion to construct a large city that encompasses residential, industrial, and tourist zones, among others. This ambitious project involves building a state-of-the-art city covering an area of 26,500 square kilometers in the desert and mountainous regions adjacent to the Red Sea. With this project, the kingdom aims to reduce its dependence on oil and diversify its economy.

Collaboration between Saudi Arabia and South Korean companies has been gaining momentum recently, with Saudi Crown Prince Mohammed bin Salman meeting the heads of eight Korean conglomerates when he visited South Korea in November 2022.

As the crown prince, also known as “Mr. Everything,” is leading the Neom City project, the focus is now squarely on whether he will meet with the South Korean delegation during its visit. As high-ranking Saudi officials have recently been visiting Seoul one after another, some analysts speculate that both countries are actively coordinating a high-level meeting.

Korean companies are also moving quickly to secure potential contracts for the Neom City project. Among Samsung Group affiliates, Samsung C&T signed a memorandum of understanding for modular construction with the Saudi Public Investment Fund (PIF) in January, continuing its involvement with the venture.