November 26, 2024

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From left, front row: STC Group CEO Olayan Alwetaid; KT CEO Kim Young-shub; and Hyundai E&C President Yoon Young-joon pose for a photo during the signing ceremony of a trilateral partnership in Riyadh, Saudi Arabia on Monday, with President Yoon Suk Yeol and government officials of both countries in attendance. (Joint Press Corp)

KT Corp. said Tuesday it will establish a digital infrastructure in Saudi Arabia together with Hyundai Engineering & Construction and Saudi Telecommunication Company (Saudi Telecom), in line with the kingdom’s aims to diversify its industry structure under Saudi Vision 2030.

KT said that it signed a memorandum of understanding with Hyundai E&C and STC Group – the parent organization of Saudi Telecom -- in Riyadh on Monday during President Yoon Suk Yeol’s state visit to Saudi Arabia in commemoration of the 50th anniversary of bilateral ties between the two countries.

Under the memorandum, the three companies agreed to seek synergy by combining KT’s digital transformation capabilities, Hyundai E&C’s smart construction capabilities and STC Group’s network infrastructure in Saudi Arabia. KT, in particular, will be tasked with building a data center and laying out the IT-based groundwork for a smart city.

“As Saudi Arabia’s Vision 2030 focuses on smart infrastructure and digital transformation, among others, the country’s digital industry is expected to undergo rapid growth,” KT said. The Saudi Vision 2030, unveiled in 2016, aims to diversify the Middle East country’s industrial structure and reduce its

dependence on oil exports.

The memorandum comes after Korea’s Land Ministry in November last year launched “One Team Korea,” an economic delegation composed of more than 120 government agencies and private companies, including KT and Hyundai E&C, to tap into the Saudi Arabian market.

“We consider it meaningful to have been able to participate in economic cooperation between Korea and Saudi Arabia on behalf of Korean ICT companies,” said KT CEO Kim Young-shub. “Based on our business experience and ICT solution capabilities at home and abroad, we will faithfully play our role as a digital innovation partner of Saudi Arabia, and as a member of One Team Korea. We will also cooperate with the government and other companies to contribute to generating meaningful achievements.”

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)