Saudi Arabia’s Trade with South Korea Surges in May
In a show of strong economic ties, Saudi Arabia’s exports to South Korea soared by 36.19 percent year-on-year to reach SR10.31 billion ($2.75 billion) in May, according to official data.
Second-Largest Destination for Saudi Exports
South Korea emerged as the second-largest destination for Saudi exports in May, trailing only behind China, which received goods worth SR15.91 billion during the same period.
Continued Growth in Trade Relations
The Kingdom’s outgoing shipments to South Korea also saw a significant increase by 31.50 percent in May compared to the previous month, reaching SR10.31 billion from SR7.84 billion.
History of Strong Trade Relations
Saudi Arabia and South Korea have a history of robust trade relations, with cumulative trade reaching SR554 billion from 2019 to 2023. Annual trade values have grown from SR93.6 billion to SR129.8 billion during this period, according to the Ministry of Commerce.
Main Exports and Imports
In May, the main export from Saudi Arabia to South Korea was oil, totaling SR10.03 billion. Non-oil exports amounted to SR278 million, with chemicals and allied products leading at SR142.6 million.
On the import side, Saudi Arabia received SR1.39 billion worth of goods from South Korea in May, including transport equipment, mechanical appliances, base metals, and chemicals.
Strength of Bilateral Relations
Affirming the strong ties between the two nations, the Saudi-Korean Business Forum was held in Seoul in July, where 10 agreements were signed across various industries. The forum focused on enhancing economic collaboration between Saudi Arabia and South Korea.
Free Trade Agreement Benefits
South Korea, as a signatory of the free trade agreement with the Gulf Cooperation Council (GCC), has agreed to remove tariffs on nearly 90 percent of all goods, including liquefied natural gas and other petroleum products. This agreement, signed in December 2023, highlights the commitment to boosting trade between the two regions.