Samsung, SK chiefs to visit Saudi Arabia for NEOM deal: land minister

The Korea Times

The Korea Times

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Tue, September 26, 2023 | 05:13

Companies

Samsung, SK chiefs to visit Saudi Arabia for NEOM deal: land minister

Posted : 2023-09-18 19:39

Updated : 2023-09-19 08:24

Minister of Land, Infrastructure and Transport Won Hee-ryong, left, speaks during a press conference at the Government Complex in Sejong, Monday. Yonhap

Korean firms expected to secure lithium through Ukraine's reconstruction

By Park Jae-hyuk

The land minister confirmed on Monday that he plans to visit Saudi Arabia next month with the heads of Korea's 10 largest business groups, including Samsung Electronics Executive Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won.

"As far as I know, some companies are about to win orders from Saudi Arabia," Minister of Land, Infrastructure and Transport Won Hee-ryong told reporters. "I will visit the country after organizing a team of businesspeople."

He also dismissed concerns about the feasibility of the NEOM smart city construction project, emphasizing that it is important for Saudi Arabia to compete with the United Arab Emirates in the Middle East.

His remarks came after it was reported earlier this month that business tycoons will accompany the minister on his trip to Saudi Arabia in October, so that their companies can join the $500 billion project to develop a smart city in the Middle Eastern country.

Given that Saudi Arabia has shown greater interest in Korea's IT and mobility technologies, the government is said to have decided to go to the Middle Eastern country with the top 10 business group chiefs, instead of construction firm CEOs.

"For companies to do business under better conditions, the government needs to support them," Won said.

During the press conference, he also talked about the result of his visit to Ukraine last week with representatives of Korean companies.

"Among the 100 million tons of global lithium deposit, 51 million tons of lithium is in Ukraine," the minister said. "The Ukrainian president wants Korea to exploit one of the country's four lithium mines, as the U.S. is exploiting two of them."

According to the minister, Ukrainian lawmakers will visit Korea next month for follow-up discussions. Korea is also considering sending inspectors there to check the feasibility of the lithium mine's exploitation.

Regarding nuclear power plant operations in Ukraine, he expressed optimism that the U.S. will allow Korean firms to build and operate nuclear plants there, so as to curb the expansion of Russia and China.

In response to concerns over possible difficulties in getting paid for the post-war reconstruction project, Won said the government would talk with the private sector to minimize the risk.

pjh@koreatimes.co.kr