Government conducts first review of economic outcomes from summit diplomacy; Middle East infrastructure strategic fund in the works to target plant and digital infrastructure markets

Deputy Prime Minister and Finance Minister Koo Yun-cheol speaks at the 269th Meeting of Ministers on External Economic Affairs at the Government Seoul Complex in Jongno-gu, Seoul, on Wednesday. [Yonhap]
Deputy Prime Minister and Finance Minister Koo Yun-cheol speaks at the 269th Meeting of Ministers on External Economic Affairs at the Government Seoul Complex in Jongno-gu, Seoul, on Wednesday. [Yonhap]

The South Korean government has reviewed the economic cooperation outcomes secured through summit diplomacy and announced $6 billion in financial support to pursue infrastructure opportunities in the Middle East.

Deputy Prime Minister and Finance Minister Koo Yun-cheol said Wednesday at the 269th Meeting of Ministers on External Economic Affairs, held at the Government Seoul Complex, that the government had "laid the groundwork for expanded economic cooperation" over the past year since the launch of the People's Sovereignty Government, signing a total of 84 memoranda of understanding with major countries in science and technology and economic and financial affairs.

Wednesday's meeting marked the government's first review of progress on economic outcomes from summit talks.

In agriculture and fisheries, an MOU with China on inspection and sanitary conditions for natural seafood exports and imports opened the door to exports of new items, including chilled butterfish. In science and technology, follow-up cooperation has taken shape following the South Korea-Vietnam science and technology cooperation MOU signed in August last year. A master plan for science and technology innovation cooperation was finalized in April.

The government said it would continue operating a joint monitoring system across related ministries to ensure summit agreements translate into tangible economic results, and would resolve any obstacles through inter-agency collaboration.

The meeting also discussed country- and sector-specific infrastructure development cooperation in the Middle East. The region accounts for roughly 49 percent — or $513.2 billion — of South Korea's cumulative overseas construction orders totaling $1.05 trillion, making it a critical market.

The government said it plans to treat the region's growing infrastructure demand as a new growth opportunity, as major Middle Eastern countries move beyond post-war reconstruction toward industrial diversification and structural economic reform.

To that end, the government said it would identify cooperation projects across sectors including plant and energy, transportation and logistics, urban development, and digital infrastructure, and actively support South Korean companies in securing project participation.

The government plans to use overseas diplomatic missions and related agencies to identify local demand and key projects, and to run integrated marketing campaigns targeting major Middle Eastern project owners. It will also provide $6 billion in pre-financing support to major Middle Eastern clients regardless of whether South Korean firms win contracts, with the aim of building a favorable cooperation environment. The Export-Import Bank of Korea and the Korea Trade Insurance Corporation will each contribute $3 billion.

In addition, the government plans to establish a "Middle East Infrastructure Strategic Fund" to be jointly created by the Korea Overseas Infrastructure and Urban Development Corporation, known as KIND, and Middle Eastern sovereign wealth funds. The government also intends to strengthen government-to-government cooperation — including the proactive dispatch of senior officials to the region — to sharpen the competitive edge of South Korean firms in winning contracts.

"The government will work alongside related ministries to ensure that the cooperative foundation built through summit diplomacy leads to tangible results — expanded overseas advancement and economic cooperation for our companies," Koo said.


fact0514@heraldcorp.com