By Oh Seok-min
On Tuesday, South Korea’s Finance Minister Choo Kyung-ho declared that the government will take measures to capitalize on recent summit talks and high-level exchanges with Middle Eastern nations. These meetings were held in order to increase trade and create new industries, as well as to generate more business opportunities.
Last week, President Yoon Suk Yeol traveled to Saudi Arabia and Qatar. During this visit, South Korea signed contracts and memorandums of understanding (MOUs) worth $20.2 billion, bringing optimism for a second Middle East business boom since the wave of construction orders won by South Korean firms in the 1970s.
In addition to last year’s business MOUs between South Korea and Saudi Arabia worth $29 billion, South Korea secured investment pledges worth $30 billion from the United Arab Emirates earlier this year.
South Korean President Yoon Suk Yeol (L) and Saudi Crown Prince Mohammed bin Salman hold talks at the Al Yamamah Palace in Riyadh on Oct. 22, 2023. (Pool photo) (Yonhap)
Choo stated that the government will be taking five key steps to achieve tangible results from the new Middle East boom. These steps include energy, infrastructure, new industries, exports, and investment cooperation. For example, the government plans to implement a joint oil reserve project with Saudi Arabia by 2028 and to proceed with agreed-upon projects on hydrogen and clean energy resources.
Moreover, the government will hold more talks to support South Korean companies in the Middle Eastern market and to secure more investments in new industry sectors such as advanced manufacturing, digital, and cosmetics.
Choo also commented on the overall economic situation, noting that there have been more signs of recovery, such as the growth in manufacturing production and exports. He expects the trend of a gradual upturn to continue through the fourth quarter.
Government data reveals that industrial output rose for the second consecutive month in September, largely due to a turnaround in the semiconductor fields. Exports are forecast to rebound in October following a yearlong downturn.
Despite this, Choo warned of external uncertainties stemming from the Israel-Hamas war, the subsequent volatility in global oil prices, and aggressive monetary tightening by major nations. He stressed that the government will remain vigilant and take steps to stabilize prices and the people’s livelihood.
South Korean President Yoon Suk Yeol (L) and Qatari Emir Sheikh Tamim bin Hamad Al Thani (R) attend an MOU signing ceremony at the Amiri Diwan, the emir's office, in Doha on Oct. 25, 2023. (Pool photo) (Yonhap)
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