South Korea, Saudi Arabia Sign MOUs, Agreed to 51 Business Deals Worth $15.6B

South Korea and Saudi Arabia have agreed to sign a total of 51 deals that are worth a massive $15.5 billion. The business agreements and memorandums of understanding (MOU) were brought up during President Yoon Suk Yeol’s recent state visit to the Middle Eastern country.

The president’s office confirmed the MOUs and other business deals on Sunday, Oct. 22. As per Yonhap News Agency, while some of the partnerships have yet to be signed, most of the agreements were already secured during a bilateral investment forum that took place after a summit meeting between the South Korean leader and Saudi Arabia’s Crown Prince Mohammed bin Salman.

Contract Signing to Mark 50 Years of Cooperation Between the Nations

Choi Sang Mok, the senior presidential secretary for economic affairs said that the rest of the contracts are expected to be sealed today, Oct. 23, through a ceremony that will also mark 50 years of cooperation between the two countries.

The deals cover various trades such as food, medical products, crude oil, hydrogen energy, and more so the leading companies based in S. Korea like Hyundai are involved. During the investment forum, President Yoon said that the year 2023 marks the golden year since the Korean construction companies first entered the Middle East after getting contracts to build highways in Saudi Arabia.

"From roads and ports to refineries, anywhere we go in Saudi Arabia, we can easily come across facilities bearing the sweat and passion of the two countries' companies," the president said. "If South Korea, which has cutting-edge technologies and a successful experience of industrial development, joins hands with Saudi Arabia, with its abundant capital and growth potential, we can create synergy stronger than any other nation."

Joint Oil Reserve Agreement

The Chosun Ilbo reported that S. Korea and Saudi Arabia also agreed to form a joint crude oil reserve of 5.3 million barrels at a storage facility of the state-run Korea National Oil Corporation in Ulsan by 2028. As part of the partnership deal, the latter will give the former priority purchasing rights to the oil in a supply and demand emergency. The contract is between the Korea National Oil Corp. and Saudi Aramco.

Presidential Secretary Choi said, “The uninterrupted supply of crude oil ahead of the winter season and the stability of international oil prices are important issues that are directly related to the livelihood of our people. President Yoon emphasized that Saudi Arabia is the crude oil exporting country that Korea most trusts and cooperates with we discussed ways to provide a stable supply of crude oil.”

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