Korea signs $4.6 bn worth of MoUs with Qatar

South Korean President Yoon Suk Yeol, left, and Qatari Emir Tamim bin Hamad Al-Sani [Photo by Yonhap]

South Korean firms recently signed order contracts and MoUs totaling approximately 6.2 trillion won ($4.6 billion) with Qatar during President Yoon Suk Yeol’s state visit to the Middle Eastern country. Korea reached a significant milestone with cooperation with Middle Eastern countries worth 107 trillion won during Yoon’s presidency, according to the Presidential office.

Among the signed contracts, a noteworthy achievement was the $3.9 billion contract between HD Hyundai Heavy Industries Co. and Qatar Petroleum for the construction of 17 liquefied natural gas (LNG) carriers. The contract also lifted Korean shipbuilders’ share in the global LNG carrier market from 74 percent to 81 percent.

Hanwha Ocean Co. and Samsung Heavy Industries Co. are reportedly in price negotiations with Qatari counterparts for around 30 vessels, indicating a broader potential for cooperation. During Yoon’s meeting with Qatari Emir Tamim bin Hamad Al-Sani, the Korean president encouraged further attention on Korean shipping companies’ LNG carrier tenders.

The visit saw 11 MoUs signed between companies and organizations from both countries, covering areas including smart farms, solar power, autonomous vehicles, cultural content, healthcare, and finance.

The state visit culminated in Yoon and the Emir of Qatar agreeing to elevate the bilateral relationship from a comprehensive partnership to a comprehensive strategic partnership. The two leaders also pledged to enhance cooperation in the defense and military sectors, supported by an MoU on defense and military cooperation, while also signing five MoUs pertaining to smart farm collaboration, high-tech construction and architecture cooperation, small and medium-sized venture cooperation, and a framework for trade and investment promotion.

Yoon’s state visits to Saudi Arabia and Qatar are viewed as a new chapter for cooperation between Korea and the Middle East by expanding collaboration beyond the traditional energy and construction markets to smart cities, defense, and eco-friendly vehicles, aligning with an era of decarbonization.