Riyadh, Saudi Arabia - A memorandum of understanding between KT (NYSE: KT), Hyundai Engineering & Construction (KRX: 000720), and Saudi Telecommunication Company (STC, TADAWUL: 7010) Group has been formalized to develop Saudi Arabia's digital infrastructure over 50 years.
Why it matters:
The MOU signals a long-term commitment to advancing Saudi Arabia's technological foundation.
The Key Points
- South Korean President Yoon Suk Yeol and Minister of Land, Infrastructure and Transport Won Hee-ryong attended the ceremony. Kim Young Shub, CEO of KT, Yoon Young Jun, CEO of Hyundai Engineering, and Olayan Alwetaid, CEO of STC Group, signed the agreement.
- KT is responsible for contributing digital transformation capabilities, Hyundai Engineering will provide construction expertise, and STC will contribute network infrastructure. These efforts will mainly focus on creating internet data centers and smart cities.
- This MOU aligns with Saudi Arabia's Vision 2030, which aims to diversify the economy.
What they say
Participating in South Korea-Saudi Arabia's economic cooperation on behalf of Korean ICT companies makes sense. The company's business experience and ICT expertise gained domestically and internationally enable it to partner in the Saudi digital transformation. We will work with the government and other companies to contribute to achieving results as a member of One Team Korea.
Kim Young Shub, CEO of KT
What has happened so far?
The MOU is a follow-up to the "One Team Korea in Saudi Arabia" initiative organized last November.
The team, led by South Korea's Ministry of Land, Infrastructure and Transport, includes 120 government and private organizations, including KT and Hyundai Engineering.
Saudi Arabia's Vision 2030, launched in April 2016, outlines plans to diversify away from an oil-centric economy with a focus on the digital sector and smart infrastructure.
This closely aligns with the newly signed MOU, increasing its potential impact on the Kingdom's future development.
KT had previously discussed digital transformation projects with key Saudi government entities, signaling a broader scope for technology cooperation between the two countries.
In addition, before finalizing the MOU, KT CEO Kim Young Shub met with STC Group CEO Olayan Alwetaid to discuss future directions for digital infrastructure.