Dubai (Arab News)

South Korean President Moon Jae-in met recently with Gulf Cooperation Council Secretary-General Nayef Al Hajraf to discuss potential partnerships between both sides.  Both sides stressed the importance of strengthening the close partnership between the Gulf Cooperation Council and the Republic of Korea at all levels,” according to a statement issued by the GCC.

They discussed the latest international developments while reviewing aspects of bilateral relations and opportunities for cooperation in the fields of renewable energy, defense industry, health care, and digital education.

South Korea and the Gulf Cooperation Council agreed last Wednesday to resume free trade, with an agreement expected to be reached within six months from the date of the first round of negotiations.

During a meeting between South Korean Minister of Trade, Industry and Energy Moon Sung-wook and GCC Secretary-General Nayef Al Hajraf, both parties stressed the importance of “opening wide prospects for trade and industrial cooperation.”

Both men discussed the challenges facing GCC countries, which prompted them to reduce dependence on oil incomes, enhance non-oil revenues and focus on renewable and clean energy, according to a statement issued by the council.

The free trade agreement between the two sides is expected to “contribute to strengthening the solid economic relations and strengthening the strategic partnership between us,” the statement added.

South Korean delegation headed by President Moon Jae-in had recently visited on a four day tour to United Arab Emirates (UAE) followed by two day tour to  Saudi Arabia and a three day visit to Egypt. Moon trip to the Middle East agenda was focused on economic diplomacy, artificial intelligence, public health and energy cooperation.

During it's visit to UAE, both the countries signed a memorandum of understanding for the UAE's purchase of a South Korean mid-range missile defense system valued at some $3.5 billion, South Korea's Yonhap news agency reported.

Abu Dhabi and Seoul agreed to expand their cooperation in the development of carbon-capture technologies to create what is known as blue hydrogen, as the East Asian nation seeks to achieve carbon neutrality by 2050. Blue hydrogen is obtained from natural gas in a process that stops carbon emissions from being released into the atmosphere.

In Saudi Arabia, Crown Prince Mohammed bin Salman and Moon Jae-in reviewed bilateral relations between the two countries and ways to support and enhance them in all fields. They also discussed the latest regional and international developments and efforts made to achieve peace and stability in light of these developments.

Earlier on arrival in Riyadh, all were masked and President Moon did not shake hands with the Crown Prince who was present to receive the guest, in line with coronavirus social distancing practices.

After holding the talks at Al-Yamamah palace in Riyadh, the two nations signed preliminary deals to jointly develop green hydrogen, which is produced from renewable energy sources, especially solar and wind, and jointly build a hydrogen ecosystem,” Moon’s office said in a statement.

Under the deals, Seoul will be able to secure carbon-neutral hydrogen and ammonia supplies from the Kingdom. It will also help Riyadh operate hydrogen-powered cars and hydrogen fueling stations.

Saudi Arabia is South Korea’s top economic and trade partner in the Middle East, contributing over 30 percent of Seoul’s total crude oil imports in 2021, according to data by the Korea International Trade Association. Bilateral trade jumped from $3.9 billion in 1980 to $27.5 billion  in 2021, according to SPA.

Deals

• Saudi Ministry of Investment signed an agreement with Samsung C&T to help it develop and localize industries related to construction technologies and green products and around investing in building and financing infrastructure projects.
• The PIF signed an MoU with Korean firms POSCO and Samsung C&T to study and develop a green hydrogen production project in KSA for export purposes, while MISA signed a joint cooperation with Samsung C&T in the field of green hydrogen for pre-cast concrete blocks and infrastructure.
• Saudi Aramco signed an MoU with Korea Electric Power Corporation, KEPCO, for a pre-feasibility study on blue ammonia and blue hydrogen for investment, production, logistics and sales, an agreement with POSCO regarding investment in blue ammonia and blue hydrogen and a basic terms agreement with Export-Import Bank of Korea for framework agreements that include a credit limit of up to $6 billion. Saudi Aramco also signed a series of agreements with S-Oil around areas including research and development, blue hydrogen and technology development.
• The Saudi Arabian Industrial Investments Co. (Dussur), Saudi Aramco and Doosan Heavy Industries and Construction signed an agreement to establish a high-efficiency factory in iron molding and forging in Ras Al-Khair, with a production capacity of 83,000 tons annually. The deal is expected to attract foreign investment, transfer quality technology to Saudi Arabia and localize supply chains for strategic sectors in the equipment industry for the oil and gas, water, energy and marine industries.
• Saudi real estate developer ROSHN and Samsung C&T agreed to establish a non-exclusive framework to jointly explore opportunities in housing development and pre-cast concrete blocks.
• The Korean Intellectual Property Office and the Saudi Authority for Intellectual Property (SAIP) signed advanced partnership arrangements for bilateral cooperation, including the secondment of Korean experts to SAIP
• The Ministry of National Guard signed a letter of intent agreement with EzCaretech to jointly provide and implement Dr. Answer – an artificial intelligence-based medical solutions tool – within targeted hospitals.
• Kumho Tire and Al-Sahm Al-Usud for Tires signed a technical partnership agreement to establish a factory for tire production. The factory’s production capacity will reach 15 million tires annually, and production is expected to start in the third quarter of 2023.

On his final leg of visit to GCC States and Africa, Moon Jae-in arrived in Cairo, where both the countries leaders discussed possibilities of cooperation in areas like renewable industries such as solar energy and environmentally friendly industries, as well as the development of railways, electric cars and seawater desalination as well as archeology and excavation of antiquities.

Egypt is one of the countries that come on the priority of South Korea official development assistance (ODA) for 2021 and 2025.  

Bilateral trade between South Korea and Egypt was recorded to US$ 2.1 billion between January-Nov. 2021, of which Egyptian exports to South Korea was  US$ 531.5 million, compared to $327.5 million during the same period of 2020.

Among the products exchanged between both South Korea and Egypt include petroleum products, cement, marble, granite, aluminum, pharmaceutical, home furnishings and ready-made clothes, in addition to cars, machinery, equipment, subway coaches and medical devices.

This visit was scheduled to be made in March 2021 but it has been postponed due to pandemic coronavirus.