South Korean ambassador to Maaal: Korean companies’ ‎investments in Riyadh reached SR21 bn

By: Fahad Talal

Park Joon Young, Ambassador of the Republic of South Korea to the Kingdom, revealed that the total volume of Korean investments in Saudi Arabia amounts to 21 billion riyals through 37 companies, while Saudi investments in South Korea amounted to nearly 8 billion riyals.

The Korean ambassador stated, in exclusive statements to the “Maaal” newspaper, that the direct investment between Riyadh and Seoul amounted to 30 billion until the year 2021 AD, indicating that the Korean investments in Saudi Arabia are more than double the Saudi investments in Korea.

On Korean industrial investments in Saudi Arabia, the ambassador said: “The volume of investment in manufacturing amounted to 100 million riyals out of the total value of Korean investments in Saudi Arabia, which amounted to 190 million riyals in 2021, surpassing the building and construction sector for the first time, by more than 50 percent of the total value.”

The Korean ambassador pointed out that Saudi Arabia is the largest trading partner in the Middle East for Korea and the ninth largest trading partner in the world, as the volume of trade between the two countries is about 174 billion riyals in 2022.

The main Korean exports to Saudi Arabia represent cars, rubber, steel and weapons, while the main Saudi exports to Korea represent crude oil, petroleum products, fine chemical raw materials and aluminum.

The number of Korean companies operating in Saudi Arabia in all fields is 37, with 20 Korean companies working in the construction and engineering sector, and 17 companies in the trade and manufacturing sector.

He expected that the work of Korean companies that will enter the Saudi market will increase during the coming period, as a result of the huge projects launched by the Kingdom, given the volume of growth in giant projects such as NEOM and the manufacturing sector.

Regarding cooperation in the field of finance and banking, Park confirmed that there had previously been cooperation between the Industrial Bank of Korea (IBK) and the General Authority for Small and Medium Enterprises (Monshaat), an agreement to support the establishment of the Saudi Bank for Small and Medium Enterprises.

The Industrial Bank of Korea also sent its experts to Saudi Arabia to disseminate technical knowledge of medium-term financing, provide advice on operating and creating strategies for a bank specializing in small and medium enterprises, as well as advising on setting up small and medium enterprises.