Saudi Crown Prince Mohammed bin Salman Al Saud, right, talks with Korean conglomerate leaders at his room in Lotte Hotel Seoul, Nov. 17. From left are Hanwha Solutions Vice Chairman Kim Dong-kwan, Hyundai Motor Group Executive Chair Chung Euisun, SK Group Chairman Chey Tae-won and Samsung Electronics Chairman Lee Jae-yong. Screenshot from Saudi Press Agency's website

By Park Jae-hyuk

Busan's bid to defeat the Saudi Arabian capital of Riyadh to host World Expo 2030 could lose momentum, after Crown Prince and Prime Minister Mohammed bin Salman Al Saud promised lucrative business opportunities for Korean companies during his day-long stay in Seoul last week, according to industry officials, Tuesday.

The 37-year-old crown prince visited Korea just a year before Bureau International des Expositions (BIE) members vote to choose the venue for one of the world's largest international events. Korean firms signed 26 memorandums of understanding (MOUs) ― collectively worth $29 billion ― with the Saudi government, institutions and companies.

The top executives of Korea's eight business groups, including the chairmen of Samsung, SK and Hyundai Motor, also met in person with the de facto Saudi leader at his hotel room.

Concerns are therefore growing over the chances of domestic conglomerates possibly deciding not to promote Busan's expo bid to other countries so that they do not jeopardize the MOU deals they recently signed or impact the possibility of winning additional orders in the future.

Since SK Group and Korea Chamber of Commerce & Industry (KCCI) Chairman Chey Tae-won was appointed earlier this year to lead the civilian committee to support Busan's bid to host the World Expo, Korea's 10 largest business groups have sent their executives abroad to promote the country's second-biggest city as the ideal venue for the prestigious event.

The business groups have also agreed to donate a combined 31.1 billion won ($23 million) to support Busan's Expo bid, according to the KCCI.

However, at the same time, Korean firms have sought business partnerships with Saudi Arabia. Samsung, Hyundai Motor, POSCO and Lotte are among the domestic conglomerates that signed MOUs with the Middle Eastern country last week, despite their support for Busan's Expo bid.

In particular, Korean builders and manufacturers have been desperate to join Neom, a $500 billion project initiated by the crown prince back in 2017 to develop eco-friendly smart cities covering a total of 26,500 square kilometers in Saudi Arabia's northwestern Tabuk Province, which is located near the Red Sea.

Amid the dilemma, Prime Minister Han Duck-soo reportedly refrained from promoting Busan during last Friday's Asia-Pacific Economic Cooperation (APEC) meeting in Bangkok, which the Saudi crown prince also attended.

"The prime ministers of both Korea and Saudi Arabia did not mention their World Expo bids at the venue for plenary sessions," a foreign ministry official told reporters, although Han is said to have asked each country's leaders to vote for Busan during their one-on-one meetings.

There is even speculation that the Saudi crown prince's abrupt cancelation of his planned visit to Japan was the result of the Korean government's decision to give up its attempt to host the global event.

"In exchange for the decision, Korea may have won opportunities to participate in lucrative projects led by the Saudi Arabian government," an industry official said on condition of anonymity.

The Korean government, however, denied the speculation, emphasizing that economic cooperation with Saudi Arabia is not affected by Busan's competition with Riyadh to host the event.

"Regardless of the friendly rivalry to host the World Expo, both countries can pursue bilateral cooperation," a high-ranking official from the presidential office told reporters before the Saudi crown prince's visit.

The KCCI, which operates the civilian committee to support Busan's bid, also dismissed such concerns.

"Regardless of business partnerships with Saudi Arabia, we will promote Busan as planned," a representative from the committee said. "It is practically impossible to win orders for Saudi construction projects in exchange for abandoning the Expo bid. In addition, our chairman is set to accelerate efforts to host the World Expo."