South Korea, Saudi Arabia to launch joint deep tech fund for AI, semiconductors
Noh Yong-seok, first vice minister of SMEs and Startups, meets with Saudi Minister of Communications and Information Technology Abdullah Alswaha in Seoul on Thursday. [Ministry of SMEs and Startups]
South Korea’s Ministry of SMEs and Startups is expanding cooperation with Saudi Arabia in artificial intelligence and digital transformation, with the two countries agreeing to pursue a joint investment fund targeting deep tech sectors including AI and semiconductors.
First Vice Minister Noh Yong-seok met with Saudi Minister of Communications and Information Technology Abdullah Alswaha in Seoul on Thursday to discuss cooperation in AI, digital innovation, and the startup ecosystem, the ministry said. The meeting was held at Saudi Arabia’s request.
Saudi Arabia’s Ministry of Communications and Information Technology oversees the country’s digital economy transition and ICT industry development. Its responsibilities span digital transformation, e-government, technology innovation, attracting foreign innovators, and fostering the startup ecosystem.
Noh emphasized the importance of bilateral cooperation, noting that Saudi Arabia is one of the top destinations for South Korean small and medium-sized enterprise exports in the Middle East. He also highlighted past achievements, including the opening of the Riyadh Global Business Center in 2023 and exchanges between the two countries’ flagship startup events — South Korea’s COMEUP and Saudi Arabia’s BIBAN.
The ministry agreed to deepen cooperation with Saudi Arabia in venture investment, AI and digital transformation for SMEs, and startup growth and overseas expansion. Discussions focused in particular on a proposed Korea-Saudi joint fund being negotiated between Korea Venture Investment Corp. and Riyadh Valley Company, a Saudi government investment body. The joint fund aims to pool contributions from both institutions to invest in SMEs, venture firms, and startups in deep tech fields such as AI and semiconductors.
Noh asked Alswaha — who currently serves on the board of Riyadh Valley Company — to actively support the fund’s establishment by year-end.
The ministry also outlined the direction of proposed legislation to promote AI adoption among SMEs. It called on Saudi Arabia to increase its interest in and investment in domestic SMEs, venture firms, and startups in innovative fields such as AI.
Startup cooperation is also set to deepen. The ministry invited Saudi government officials, investors, and startups to participate in COMEUP, South Korea’s largest global startup event, scheduled for Dec. 9-11.
“We will actively support the expansion of substantive exchanges — including the establishment of the joint fund, investment, and the promotion of mutual market entry — building on the momentum of this meeting,” Noh said.
Saudi Arabia has been working to diversify beyond its oil-dependent economy by cultivating AI, semiconductors, and digital technology as future growth engines. Industry observers are watching closely to see whether the latest cooperation will go beyond symbolic exchanges and translate into actual Middle East investment for South Korean deep tech startups. Sovereign wealth funds and government investment bodies across the region, including Saudi Arabia, have been stepping up investment in advanced technology sectors such as AI, semiconductors, and robotics.
boo@heraldcorp.com
This content was produced with the assistance of AI translation services.
