South Korea, Saudi Arabia expand cooperation into AI, aerospace and mobility

Korea Enterprises Federation co-hosts 2026 Korea-Saudi Business Investment Forum with Saudi sovereign wealth fund PIF; Kolon, Posco E&C, Naver, Hyundai Rotem and KAI among participants; FKI Vice Chairman Kim Chang-bum calls for 'two-way partnership'

South Korean and Saudi Arabian business communities are broadening their economic cooperation beyond the traditional pillars of construction and energy into advanced industries including AI, aerospace and mobility. The forum was organized to expand business and investment exchanges between companies from both countries and to identify new project and investment opportunities across sectors.

The Korea Enterprises Federation co-hosted the 2026 Korea-Saudi Business Investment Forum with Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), on Tuesday at the FKI Tower Conference Center in Yeouido, Seoul. Sponsored by the Ministry of Trade, Industry and Energy, the event drew about 280 business representatives from the two countries.

South Korean participants included companies with active interest in entering or deepening ties with Saudi Arabia — among them Kolon, Posco E&C, Naver, Hyundai Rotem and Korea Aerospace Industries (KAI). More than 20 Saudi firms spanning a range of industries attended alongside PIF.

Korea Enterprises Federation Vice Chairman Kim Chang-bum said in his opening remarks that economic cooperation between the two countries "must develop into a two-way partnership that goes beyond awarding and receiving contracts, extending to joint investment, local production and technology cooperation." He added that he hoped the forum would lead to concrete investments and projects and "open a new chapter in Korea-Saudi economic cooperation that will endure beyond Vision 2030."

The South Korean government has also signaled its intention to shift bilateral cooperation toward advanced industries. Park Jeong-seong, chief trade negotiator at the Ministry of Trade, Industry and Energy, said in a video address that the two countries had contributed to each other's growth over the past six decades through energy supply and industrial infrastructure development, and that Saudi Arabia's Vision 2030 was driving cooperation into higher-value advanced industries.

Park said the government would strengthen cooperation in three areas: resource supply chains, advanced industries through AI-driven transformation, and expansion of the institutional framework underpinning economic cooperation. The ministry also plans to push for the early signing and entry into force of a free trade agreement between South Korea and the Gulf Cooperation Council, and to use government-to-government consultation channels to broaden the trade and investment base for companies from both sides.

The plenary session featured pitching sessions in four areas: special zone development and construction; technology, media, telecommunications and healthcare; utilities, resources, transportation and logistics; and advanced industries. Companies from both countries presented their businesses and projects, seeking common ground to deepen existing cooperation and identify new opportunities in future industries.

Advanced industry proposals from South Korean firms — particularly in AI, digital transformation and aerospace — drew significant attention. Naver Cloud presented its sovereign AI initiative currently under way in Saudi Arabia and outlined plans for further expansion, describing a vision to support the kingdom's digital transformation and digital sovereignty through digital twin technology, a map-based super app, and data center and cloud services.

KAI outlined its advanced product lineup — fixed-wing and rotary-wing aircraft, unmanned aerial vehicles and satellites — and expressed its commitment to building a strategic aerospace cooperation model with local Saudi firms that would include joint development and local production. Hyundai Rotem explored cooperation opportunities with Saudi Arabia in the utilities, resources, transportation and logistics session, while Posco E&C shared the construction and project management expertise it has accumulated through major projects carried out in the kingdom.

One-on-one business consultations between companies from both countries were also held on the sidelines. Participants discussed specific cooperation possibilities including project participation, technology collaboration, and local business and investment. A Korea Enterprises Federation official said the federation hoped "this exchange will lead to concrete business and investment, taking Korea-Saudi economic cooperation to the next level."

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