Seoul: South Korea and the United Arab Emirates (UAE) have reached an agreement to pursue cooperation projects exceeding US$65 billion, including over $35 billion in the defense industry, aimed at strengthening bilateral economic ties, as announced by President Lee Jae Myung's top aide. Kang Hoon-sik, serving as a special presidential envoy for strategic economic cooperation, disclosed the details of his recent visit to the UAE, where he conveyed President Lee's personal letter to President Mohamed bin Zayed Al Nahyan and engaged in discussions with Khaldoon Khalifa Al Mubarak, chairman of Abu Dhabi's Executive Affairs Authority.
According to Yonhap News Agency, Kang revealed upon his return to Incheon International Airport that the agreement includes projects worth over $65 billion, with $35 billion dedicated to the defense industry and $30 billion for investment cooperation. A memorandum of understanding was signed to establish a defense industry cooperation framework, signifying a transition from a buyer-seller dynamic to a comprehensive partnership encompassing the entire defense industry cycle, from design and training to maintenance and repair.
When asked about specific areas of cooperation, Kang indicated that the partnership would cover a wide range of sectors, such as integrated air defense, aircraft, and naval vessels. However, he refrained from providing further details due to confidentiality concerns.
The agreement also involves restructuring bilateral investment cooperation valued at $30 billion to bolster the strategic partnership between the two countries. This new framework aims to facilitate the UAE's $30 billion investment pledge to South Korea while supporting Korean companies' ventures into the Middle Eastern market and joint expansions into third-country markets.
In the nuclear energy sector, the two nations plan to enhance full-cycle cooperation, drawing from their experience with the Barakah nuclear power plant in the UAE. This includes collaboration on nuclear fuel supply, maintenance capabilities, and applying artificial intelligence (AI) technologies to plant operations. Built by the state-run Korea Electric Power Corp, the UAE nuclear power plant is now fully operational, supplying a quarter of the UAE's electricity.
Kang added that both countries will actively seek joint entry into third-country markets in response to growing global demand for nuclear power amid increasing electricity needs for AI and other technologies. Consultations on follow-up measures will continue, with Al Mubarak scheduled to visit South Korea in March or April.
The Korean economic delegation's visit follows summit talks between President Lee and Sheikh Mohamed in Abu Dhabi last November, where they explored expanding cooperation in AI, the defense industry, nuclear energy, and other sectors.