President Yoon Focuses on Sales, Driving a “Second Oil Boom” from the UAE

UAE, commits investment of USD 30 bln in Korea…

Despite controversy over his remarks at the Akh Unit (Republic of Korea Special Warfare Unit in the UAE), designating a certain country as “UAE’s enemy”, President Yoon increases contact with foreign CEOs at Davos, Switzerland, saying, “I am salesperson no. one of South Korea.”

President Yoon Suk Yeol’s “Tour of the UAE and Switzerland” this month was focused from beginning to end on economic diplomacy. After inauguration in May of last year, great weight was given to the diplomatic and security issues of the Korean Peninsula during his three overseas tours. On this occasion, the tour was conducted focused strictly on achieving economic goals. In a post on Facebook while at Davos, President Yoon said, “We emphasize the economy again and again and again.” A major achievement from the visit to the UAE was the summit meeting with UAE President Mohammed bin Zayed Al-Nahyan, upon which an investment commitment of USD 30 bln was attained.

On January 19 (local time), Lee Kwan-Sup, Senior Secretary for State Affairs Planning, said at a briefing on the results of the visit, that “This visit resulted in many achievements due to the efforts of the government and private sector entities to act as a team and establish export contracts and MOUs, as well as attract investment…We shall pursue detailed after measures so that these achievements become visible.”

l  First state visit to the UAE…"The most successful presidential visit to the UAE in Korean history”

The fact that President Yoon chose the UAE for his first state visit of the year is notable. It was the first state visit to the UAE by a Korean President since the establishment of bilateral ties in 1980. Just as the Korean economy took a leap forward in the 1970s with the “Oil Boom”, President Yoon envisions the attainment of new growth engines through a “Second Oil Boom”. Such value placed on the matter is reflected in the fact that a business delegation was formed consisting of heads of the major enterprises in Korea, as well as that of about 100 SMEs and middle market enterprises.

As if proof of this, most of the itinerary for the visit to the UAE was composed of economic issues. While the two summits were seated, 13 MOUs were established, while 48 small and large MOUs and contracts were also established. Unlike MOUs which are not legally binding, the UAE President’s pledge to invest USD 30 bln was stipulated in the joint statement between the two statements, which can be viewed as being significant.

“Through the state visit to the UAE, we have strengthened economic cooperation on all fronts with the UAE, with which we have a special strategic partnership,” said Senior Secretary Lee. “We have made the largest achievements yet, attracting USD 30 bln of investment and establishing 48 MOUs, from the UAE tour.” The Presidential Office emphasized the significance of the tour, saying that cooperation has diversified, surpassing traditional areas such as energy and defense, to new industries such as hydrogen, bio, smart farms, digital transformation and the Metaverse.

Expectations are even rising over potential additional project execution orders from the UAE Barakah Nuclear Power Plant, which is Nuclear Power Plant Export Number One of Korea. The UAE side responded with much positive acclaim, expressing their welcome with escorting Air Force fighter planes and air shows, as well as lighting up the Presidential Palace with the colors of the Korean national flag - red and blue - and gun salutes as well as traditional performances by cavalrymen and camel brigade.

However, upon his visit to the Akh Unit, the Republic of Korea Special Warfare Unit in the UAE, as part of his effort to encourage the soldiers, President Yoon said, “This is your fatherland,” and that “The enemy of the UAE, its most-threatening nation, is Iran, and our enemy is North Korea.” This sparked much controversy. Korea’s opposition party said it was a “diplomatic disaster”, while the ruling party stated that it was part of an “effort to encourage the soldiers.” A heated argument continued, and the situation led to the summoning of the ambassadors of both sides by the two countries of Korea and Iran.

l  The World Economic Forum at Davos: “Korea Sales Effort by a Global CEO”

The schedule for the second destination of President Yoon’s tour, Switzerland, was also focused on economic matters. After a meeting with overseas Koreans in Zurich, President Yoon attended the annual general meeting of the World Economic Forum at Davos for two days from the 18^th to the 19^th, and widened contact with the CEOs of global companies. It was the first time in 9 years that a Korean head of state attended the WEF, after President Park Geun-Hye attended in 2014. Notably, at the luncheon among global company CEOs, not only did the heads of the 6 major corporate groups in Korea participate from our side, but the heads of 15 foreign companies also attended. President Yoon engaged in active sales, telling the foreign businessmen, “I am the Republic of Korea’s salesman number one…My office is always open so you can visit me anytime.”

At the “Korea Night” event, President Yoon met with Klaus Schwab, chairperson of the WEF, as well as other prominent foreign personnel. During his special speech at the Forum, again, he put much weight on economic issues, focusing on “strengthening the supply chain.” At a briefing, Director of National Security Kim Sung-Han said, “President Yoon met with core global personnel who were at the WEF, presented a future vision for the Korean economy, and continued his endeavors for economic diplomacy…This was the first time that our head of state visited the Forum in person in 9 years, and helped strengthened our status as a core global nation.”

[Provided by Yonhap News]