From left are Saudi Arabia Crown Prince Mohammed bin Salman, Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Euisun, LG Group Chairman Koo Kwang-mo and Lotte Group Chairman Shin Dong-bin.

Saudi leader looks for partners for $500 billion NEOM City project

By Kim Hyun-bin

Saudi Arabia's Crown Prince Mohammed bin Salman is set to visit Korea next week and and speculation abounds on whether he will meet with chaebol tycoons to discuss business partnerships for the kingdom's $500 billion eco-friendly NEOM City project, according to industry officials, Friday.

The crown prince is scheduled to visit Seoul on Nov. 17 and stay for one night at the Lotte Hotel in Seoul, before heading to Japan. The purpose of his visit to Korea is to find partner companies for his country's mega city development project.

NEOM City is a $500 billion eco-friendly smart linear city project being developed in Saudi Arabia in Neom, Tabuk, which is designed to have no cars, streets or carbon emissions. The 170-kilometer-long city is part of the Saudi Vision 2030 project, which Saudi Arabia claims will create 380,000 jobs and add $48 billion to the country's GDP.

"One of the clear business opportunities that can turn around the low-growth economy is Saudi Arabia's NEOM City project," an official at a large business group said on condition of anonymity. "We think that there will be a lot of potential, and our companies have enough skills and qualifications to become a reliable partner to successfully carry out projects based on their experience in the Middle East."

Previously, the crown prince visited Korea in June 2019 and held a meeting with the heads of major domestic companies, including then-Vice Chairman Lee Jae-yong.

Industry officials believe the crown prince will hold business meetings with the heads and CEOs of the top five conglomerates ― Samsung, SK, Hyundai, LG and Lotte. Saudi Arabia's Investment Minister Khalid al-Falih is in Seoul to coordinate the schedule.

All eyes are on if Crown Prince bin Salman and Chairman Lee will meet for the first time in three years. In 2019, Lee invited Salman and they had a meeting with Hyundai Motor Group Chairman Chung Euisun, SK Group Chairman Chey Tae-won, LG Group Chairman Koo Kwang-mo and Lotte Group Chairman Shin Dong-bin.

In September of the same year, Lee visited Riyadh, Saudi Arabia, and had a personal meeting with the crown prince. At the time, it was reported that the crown prince showed a deep interest in Fourth Industrial Revolution technologies such as Samsung's artificial intelligence (AI), fifth-generation network (5G) and Internet of Things (loT).

It is also noteworthy whether Hyundai Motor Group Chairman Chung Euisun will meet Salman, as Hyundai Motor is promoting smart city projects such as urban air mobility (UAM), robotics and autonomous driving.

In addition, SK Group Chairman Chey Tae-won, who has had close ties with Saudi Arabia through the oil refining business, is also likely to meet with the crown prince. As Chey also serves as chairman of the Korea Chamber of Commerce and Industry (KCCI), he is expected to represent Korean companies and request expanded economic cooperation with Saudi Arabia.