ALBAWABA - South Korean President Yoon Suk-yul announced on Sunday that the Hyundai Motor Group, a South Korean company, has agreed to build a car factory in Saudi Arabia in partnership with the Public Investment Fund, the sovereign wealth fund of the Kingdom.
The meeting took place at Al-Yamamah Palace in Riyadh, and it included an extensive discussion and an official session of talks between Saudi Crown Prince Mohammed bin Salman and South Korean President Yoon Suk-yul, along with the signing of several bilateral agreements and memoranda of understanding between the two countries.
During the Saudi-Korean Forum, the two countries signed 52 memoranda of understanding covering various areas, including real estate development, automobiles, water, transportation, tourism, energy, renewable energy, technology, infrastructure, and cybersecurity, with the aim of enhancing investments between the Kingdom and the Republic of Korea.
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According to Reuters, President Yoon mentioned in Riyadh that the Public Investment Fund and Hyundai had reached an agreement to establish a Hyundai Motor car factory in the Kingdom of Saudi Arabia. The South Korean Ministry of Industry stated in a press release that the factory's annual production capacity would be 50,000 electric and gas-powered cars, making it the first South Korean car manufacturing plant in the Middle East.
The Hyundai Motor Group, the world's third-largest automaker by sales, is embarking on the construction of the factory in Saudi Arabia as it seeks to diversify its economy away from oil and aims to produce over 300,000 cars annually by 2030.
Yoon stated that the first cars from the production line would be launched in 2026, but there were no specific details provided about the factory's location or the models to be manufactured there.
According to the Saudi Press Agency, Saudi Crown Prince Mohammed bin Salman and South Korean President Yoon Suk-yul also witnessed the signing of several economic agreements and bilateral memoranda of understanding. These included strategic partnership agreements between Saudi Arabia and Korea and the signing of the Green and Clean Hydrogen Oasis Initiative for cooperation in the field of green and clean hydrogen.
On another note, an agreement was signed between the Saudi government and the Korean government regarding the mutual exemption from short-stay residence visa requirements for holders of diplomatic, special, and official passports. The two countries also agreed to implement a joint statistical cooperation program between the General Authority for Statistics in Saudi Arabia and the Korean Statistics Agency.
In the healthcare sector, a memorandum of understanding was signed between the General Authority for Food and Drug Safety in Saudi Arabia and the Ministry of Food and Drug Safety in the Republic of Korea for cooperation in the areas of food and medical products. The Saudi-Korean Investment Forum was accompanied by an exhibition showcasing investment opportunities in various sectors, services, and incentives for investors, with the participation of several government ministries and agencies.
