A 500 Trillion Won Construction Project
Korea Trade Insurance Corp. (K-Sure) is helping South Korean companies to win a new city construction project in Saudi Arabia by utilizing its global financing expertise.
K-Sure announced on Dec. 22 that it arranged meetings between 50 South Korean construction, plant and equipment companies and the five state-run enterprises of Saudi Arabia engaged in the project. Saudi Arabia is the largest overseas market for South Korean construction companies, and they have won US$70.5 billion of contracts in the country for the past 10 years.
The total cost of the project, dubbed Neom Smart City, amounts to 500 trillion won. Hyundai Engineering, Samsung Engineering, GS E&C, Hyundai E&C, and many more are considering taking part in it.
“We already signed an agreement with the Ministry of Finance of Saudi Arabia to provide a mid- to long-term project financing of US$3 billion when South Korean companies participate or South Korean equipment is used in a project launched by the Saudi Arabian government,” K-Sure explained, adding, “South Korean companies are highly likely to join the Neom Smart City Project to be launched next year.”
Earlier, K-Sure carried out a similar financial arrangement to help 40 non-large companies export 220 billion won of construction equipment to Saudi Arabia.