South Korea seeks 27 SMEs for Saudi market entry
Korean-Saudi programme to support tech SMEs entering the Kingdom
#SouthKorea #SMEs - South Korea's Ministry of SMEs and Startups (MSS) has launched recruitment for 27 small and medium enterprises to enter the Saudi market through a joint government programme targeting artificial intelligence, bio-health, tourism, and smart city sectors. Saudi national AI company HUMAIN, luxury tourism developer Red Sea Global, downtown development project Al Murabba, Saudi government venture capital fund Saudi Venture Capital Company, and Saudi Aramco's venture capital fund Wa'ed Ventures are supporting the initiative. The initiative is backed by a joint Korean-Saudi $160 million fund.
SO WHAT? - The launch of the Korea-Saudi Small and Medium Enterprises venture support programme follows five years of intensive bilateral activity between Saudi Arabian and South Korean governments. The two countries have signed several agreements and exchanged trade delegations, while former South Koreans president Yoon Suk Yeol made an official state visit to the Kingdom in 2023. The same year, Korea's MSS and the Saudi Small and Medium Business Bank (SME Bank) agreed to create a joint $160 million fund to provide investment and support for Korean SMEs entering the Saudi market. In 2024, details for a programme were agreed between the Saudi Small and Medium Enterprises General Authority (Monsha’at) and MSS.
Here are some key points about the Korean-Saudi SME programme;
South Korea's Ministry of SMEs and Startups (MSS) and the Embassy of the Republic of Korea in Saudi Arabia will recruit 27 companies for a Saudi market entry programme, across four strategic sectors: artificial intelligence, bio-health, tourism and entertainment, and smart city construction.
Artificial intelligence sector applicants must be startups established within the last 10 years, whilst other sectors accept all qualified small and medium enterprises for participation.
Korean SME exports to the Kingdom account for $1 billion, with significant untapped market potential and this is the focus of this bilateral trade initiative.
Beginning July 7th, MSS will recruit candidates for its Small and Medium Enterprises venture support programme, with applications closing July 24th. The ministry will carry out document evaluation in late July and face-to-face assessments with Saudi experts in August to select final participants.
Selected Korean companies will visit Saudi Arabia in late September for government agency meetings, investor interviews, investment attraction briefings, and networking events to establish local market presence and secure business opportunities.
A number of Saudi organisations are supporting the Korean SME programme including Saudi national AI company HUMAIN, luxury tourism developer Red Sea Global, downtown development project Al Murabba, Saudi government venture capital fund Saudi Venture Capital Company, and Saudi Aramco's venture capital fund Wa'ed Ventures.
The programme builds on a 2023 agreement establishing a $160 million joint fund between Korea's Ministry of SMEs and Startups and Saudi Small and Medium Business Bank (SME Bank) to support Korean company market entry.
The Saudi Small and Medium Enterprises General Authority (Monsha’at) and Korea's MSS opened the Riyadh Global Business Center in 2023 as a collaborative platform supporting SME entry and settlement in Saudi Arabia, connecting innovation ecosystems and promoting networking opportunities with investors.
ZOOM OUT - One of the most notable outputs from the Korean-Saudi trade and investment partnership so far has been Naver Corp.’s $100 million contract to develop smart city digital twins for Saudi Arabia and the formation of a joint-venture in the Kingdom. The digital giant recently announced the completion of digital twin platforms for three major Saudi cities covering an area of 6,800 square kilometres and mapping over 920,000 buildings across Makkah, Medina, and Jeddah.
[Written and edited with the assistance of AI]