[Yoon Suk-yeol Administration's Diplomatic Achievements(11)] Saudi Cooperation Opens 'Middle East 2.0 Era'... Secures 21 Trillion Won in Investment

Editor's Note: Despite facing challenges such as a National Assembly dominated by the opposition and record-low approval ratings, the Yoon Suk-yeol administration is making notable achievements on the diplomatic stage. Despite difficult domestic political conditions, the Yoon administration is strengthening the South Korea-U.S. alliance, improving relations with Japan, and addressing various diplomatic challenges to expand its international standing. This article examines the diplomatic achievements of the Yoon administration, the background behind these successes, and future challenges.President Yoon Suk-yeol, on a state visit to Saudi Arabia, is seen walking and conversing with Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud during the official welcoming ceremony at Al-Yamamah Palace in Riyadh on October 22, 2023 (local time). (Source: Yonhap News)Last year's state visit by President Yoon strengthened bilateral cooperationAdvances in new industries and defense sectorsEconomic cooperation continues to yield results this year with the Korea-Saudi Business ForumExperts: "Expanding the foundation for Middle East trade""Need for a strategy considering security dynamics"[Cheonji Daily = Reporter Robert Kim] Since his inauguration, President Yoon Suk-yeol has actively engaged in diplomatic efforts to enhance South Korea's international standing. Notably, his diplomatic achievements in the Middle East have laid a critical foundation for maximizing the country's economic and security interests. Following President Yoon's visit to Saudi Arabia (Saudi) in October last year, continuous achievements have been made, including the recent 'Korea-Saudi Business Forum' held last month. This article analyzes the significance and future prospects of the key diplomatic accomplishments the Yoon administration has achieved through its relationship with Saudi Arabia.◆Saudi Arabia: The Largest Trade Partner in the Middle EastIn October last year, President Yoon paid a state visit to Saudi Arabia, further solidifying the cooperative relationship between the two countries. President Yoon met with Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, and expanded the scope of cooperation beyond traditional sectors such as energy and construction to new industries like decarbonization, eco-friendly construction, and clean energy, preparing for the 'post-oil' era. This is being hailed as the opening of the 'Middle East 2.0 Era.'Saudi Arabia has been South Korea's largest oil supplier and the largest trading partner in the Middle East since establishing diplomatic ties in 1962. While cooperation was primarily focused on infrastructure construction in the past, it has now expanded to various fields, including eco-friendly energy, artificial intelligence (AI), and smart farming. This change can be attributed to the combination of Saudi Arabia's 'Vision 2030' plan and South Korea's technological prowess.President Yoon's visit to Saudi Arabia served as a pivotal moment to advance bilateral relations. During his visit, he explored various areas of cooperation based on the partnership with Saudi Arabia, playing a crucial role in strengthening the economic partnership between the two countries. Additionally, the relationship with Saudi Arabia has strengthened South Korea's diplomatic presence in the Middle East and elevated its standing in the international community.President Yoon Suk-yeol, on a state visit to Saudi Arabia, is greeting the Saudi delegation during the official welcoming ceremony at Al-Yamamah Palace in Riyadh on October 22, 2023 (local time). (Source: Yonhap News)◆Economic Cooperation Achievements Worth 21 Trillion WonPresident Yoon's visit to Saudi Arabia resulted in the signing of 51 contracts and memorandums of understanding (MOUs) worth approximately $15.6 billion (about 21 trillion won). These agreements cover various fields, including energy, construction, and defense.Notable examples include a joint oil stockpiling contract for 5.3 million barrels between the Korea National Oil Corporation and Saudi Aramco and a $400 million contract to establish a CKD (complete knock-down) automobile plant between Hyundai Motor Company and Saudi Arabia's Public Investment Fund (PIF).In addition, Minister of Land, Infrastructure, and Transport Park Sang-woo met with Saudi Arabia's Minister of Commerce Majid bin Abdullah Al Qasabi on the 30th of last month in Seoul, where they discussed the potential for presenting a future city model that combines Korea's accumulated expertise in housing, smart cities, and high-speed rail construction with Saudi Arabia's urban development mega projects. Minister Park emphasized that Korean companies are investing in local modular construction production facilities and proposed expanding the scope of cooperation between the two countries.Saudi Arabia's 'Vision 2030' plan aims to diversify its economy and achieve social and cultural transformation, positioning South Korea as a key partner in this endeavor. Particularly, Saudi Arabia seeks to diversify its economy through the expansion of manufacturing and digital transformation. Cooperation with Korean companies is expected to play a crucial role in achieving these goals, maximizing the economic benefits for both countries.President Yoon Suk-yeol, on a state visit to Qatar, is holding a Korea-Qatar summit with Qatari Emir Sheikh Tamim bin Hamad Al Thani at the Amiri Diwan, the Qatari royal palace, in Doha on October 25, 2023 (local time). (Source: Yonhap News)◆Strengthening Cooperation in Defense, Arms, and CounterterrorismAnother notable achievement from President Yoon's visit to Saudi Arabia is the cooperation in the defense sector. South Korea and Saudi Arabia agreed to strengthen cooperation in defense, arms, and counterterrorism. Discussions are ongoing about large-scale defense cooperation in various fields, including air defense systems and firepower weapons. The Presidential Office views this cooperation as an opportunity to expand the defense export market to the Middle East.Saudi Arabia has recently emerged as a major arms importer, with significant interest in South Korean defense technology. This provides South Korea with the opportunity to tap into a new defense market in the Middle East.This marks an important milestone in strengthening South Korea's presence in the global defense market. In particular, defense cooperation with Saudi Arabia is expected to play a crucial role in expanding South Korea's defense industry in the Middle East. Saudi Arabia aims to bolster its national defense capabilities based on South Korea's advanced defense technology, which is anticipated to enhance the strategic partnership between the two countries.Ahn Duk-geun, the Minister of Trade, Industry and Energy, who was the head of trade negotiations at the time, is seen taking a commemorative photo with Dr. Majid A. Al Qasabi, Saudi Arabia's Minister of Commerce, at Rambagh Palace Hotel in Jaipur, India, on August 24 last year. (Source: Yonhap News)◆Partnerships in Emerging IndustriesCooperation with Saudi Arabia has also expanded into emerging industries. This includes collaborations in various fields, such as blue ammonia production, digital infrastructure development, healthcare, robotics, smart farming, tourism, and the beauty industry. These collaborations are linked to Saudi Arabia's 'Vision 2030' plan. Cooperation in emerging industries can be seen as the result of the combination of South Korea's advanced technology and Saudi Arabia's economic diversification strategy.At the Korea-Saudi Business Forum, Saudi Arabia's Deputy Minister of Commerce Ayman Al-Mutairi emphasized the importance of cooperation between the two countries while presenting the progress and achievements of 'Vision 2030,' Saudi Arabia's economic reform plan. The Saudi government is pursuing industrial diversification through the expansion of manufacturing and digital transformation, and cooperation with Korean companies is expected to play a vital role in achieving these goals.Furthermore, such cooperation is expected to contribute to enhancing the competitiveness of both countries in the global economy. Collaboration in digital infrastructure development and advanced technology fields is anticipated to promote technological innovation between the two countries and contribute to the formation of a new industrial ecosystem.Through its cooperation with Saudi Arabia, the Yoon Suk-yeol administration has significantly expanded its diplomatic achievements in the Middle East. By pioneering cooperation in emerging industries beyond traditional areas, South Korea is strengthening its economic influence in the Middle East. The expansion of cooperation in the defense sector will be an important milestone in expanding South Korea's defense export market to the Middle East, and the strategic partnership with Saudi Arabia is expected to have a positive impact on the economy and security of both countries.Minister of Land, Infrastructure, and Transport, Park Sang-woo, met with Saudi Arabia's Minister of Commerce, Majid bin Abdullah Al Qasabi, on the 31st of last month. The two discussed ways to cooperate on infrastructure between South Korea and Saudi Arabia. (Source: Yonhap News)◆"Strategic Diplomacy Considering Unique Characteristics Is Key"Experts praise the smooth cooperation between South Korea and Saudi Arabia but advise a more strategic approach considering the unique security dynamics of the Middle East in the future.Moon Sung-mook, Director of the Unification Strategy Center at the Korea Research Institute for National Strategy, explained, "Saudi Arabia, along with Iran, is a leading power in the Middle East and one of the leading oil-producing countries, which at one time showed a pro-American stance but has recently become somewhat estranged, prompting continued efforts by the U.S."He added, "Saudi Arabia cannot rely solely on oil for its national future strategy, so it is pushing forward with a new national strategy centered on mega cities, and in this process, South Korea has become an important partner. The follow-up measures agreed upon between Korea and Saudi Arabia (in October last year) are now being smoothly implemented."Director Moon believes that close cooperation is possible not only in the economic sector but also in the security sector."When Crown Prince Mohammed bin Salman visited Korea, he was impressed by our defense companies," he said, noting that "Saudi Arabia has purchased our defense systems, such as Cheonmu, on a large scale. While the emphasis may be on economic cooperation regarding mega cities, close cooperation is also possible in the defense sector."Regarding the obstacles and challenges to Korea-Saudi cooperation, he advised, "It is important to carefully navigate the competitive relationship between Saudi Arabia and Iran when formulating diplomatic strategies. In pursuing a Middle East strategy, it is essential to consider the unique security dynamics of the region. If we develop a meticulous strategy amid the competition between these two leading countries, South Korea can significantly expand its trade base in the Middle East."Kim Dae-jong, a professor of business administration at Sejong University, also emphasized the importance of maintaining friendly relations with Saudi Arabia, saying, "As a country that relies 100% on imports for its oil consumption, maintaining a friendly relationship with Saudi Arabia, an oil-producing nation, is paramount. The biggest obstacle here could be the situation in the Middle East, and it is crucial to carefully monitor the ongoing concerns about escalation and develop a well-thought-out response strategy."

Despite facing challenges such as a National Assembly dominated by the opposition and record-low approval ratings, the Yoon Suk-yeol administration is making notable achievements on the diplomatic stage. Despite difficult domestic political conditions, the Yoon administration is strengthening the South Korea-U.S.

alliance, improving relations with Japan, and addressing various diplomatic challenges to expand its international standing. This article examines the diplomatic achievements of the Yoon administration, the background behind these successes, and future challenges. Last year's state visit by President Yoon strengthened bilateral cooperation Advances in new industries and defense sectors Economic cooperation continues to yield results this year with the Korea-Saudi Business Forum Experts: "Expanding the foundation for Middle East trade" "Need for a strategy considering security dynamics" [Cheonji Daily = Reporter Robert Kim] Since his inauguration, President Yoon Suk-yeol has actively engaged in diplomatic efforts to enhance South Korea's international standing.

Notably, his diplomatic achievements in the Middle East have laid a critical foundation for maximizing the country's economic and security interests. Following President Yoon's visit to Saudi Arabia (Saudi) in October last year, continuous achievements have been made, including the recent 'Korea-Saudi Business Forum' held last month. This article analyzes the significance and future prospects of the key diploma.