Kim Dong-hwan, CEO of YUMIN ST
Saudi Arabia-Korea Industrial Complex to break ground in June
Tariff 10%, lower than Southeast Asia
Advantageous in exporting to the US
Building a factory in Saudi Arabia-Korea Industrial Complex (SKIV) is not only advantageous for entering the Middle East market but also has advantages in reaching Europe, Africa as well as the United States."
Kim Dong-hwan, CEO of YUMIN ST (shown in photo), showed confidence in industrial cooperation with Saudi Arabia during an interview with Maeil Business Newspaper on May 7th. SKIV is a massive industrial complex built by the Saudi International Industrial Complex Corporation (SIIVC) with a total project cost of 7.9 trillion won in Jazan, an industrial city in the southwest of Saudi Arabia, with a scale of 1.2 million square meters. It is a key project of the "Vision 2030" project, which Saudi Arabia is pushing to break away from an oil-dependent economy and become a manufacturing-oriented new industrial country.
YUMIN ST will break ground for its factory in SKIV in June.
CEO Kim emphasized, "SKIV is a bridgehead that can target the Middle East, Europe, and even the U.S. market." This is because Saudi Arabia has recently become more advantageous as a production base than Southeast Asian countries, which have been imposed up to 40% or more, as it has been subject to the lowest level of 10% in U.S. mutual tariffs.
According to YUMIN ST, SIIVC has come up with two tenant models while recruiting Korean small and medium-sized companies to move into SKIV. The first is a model for Korean small and medium-sized enterprises to establish local subsidiaries in Saudi Arabia. In this case, the Saudi Industrial Development Fund (SIDF), a sovereign wealth fund, will lend 55-70% of its total investment at long-term low interest rates for up to 20 years. Incentives such as provision of industrial land and partial support for labor costs will also follow.
The second is a model that builds and utilizes a warehouse-type assembly plant in SKIV. If the proportion of product assembly in Saudi Arabia is more than 40%, it will be granted "Made in KSA (Kingdom of Saudi Arabia)" certification and will enjoy tariff benefits when exporting to the United States, the European Union (EU), and Africa.
SKIV is not just an industrial complex that provides land and factories, CEO Kim said. "It is an "all-in-one platform" that brings together financing, corporate services, and export in once place." Saudi Arabia is a geopolitical hub connecting the Middle East, Europe, and Africa, and has recently gained an advantage in exports to the United States in terms of tariffs, he said. "Korean small and medium-sized companies need to take advantage of this."
[Reporter Lee Yunsik leeyunsik@mk.co.kr]
Kim Dong-hwan, CEO of YUMIN ST
Saudi Arabia-Korea Industrial Complex to break ground in June
Tariff 10%, lower than Southeast Asia
Advantageous in exporting to the US
Building a factory in Saudi Arabia-Korea Industrial Complex (SKIV) is not only advantageous for entering the Middle East market but also has advantages in reaching Europe, Africa as well as the United States."
Kim Dong-hwan, CEO of YUMIN ST (shown in photo), showed confidence in industrial cooperation with Saudi Arabia during an interview with Maeil Business Newspaper on May 7th. SKIV is a massive industrial complex built by the Saudi International Industrial Complex Corporation (SIIVC) with a total project cost of 7.9 trillion won in Jazan, an industrial city in the southwest of Saudi Arabia, with a scale of 1.2 million square meters. It is a key project of the "Vision 2030" project, which Saudi Arabia is pushing to break away from an oil-dependent economy and become a manufacturing-oriented new industrial country.
YUMIN ST will break ground for its factory in SKIV in June.
CEO Kim emphasized, "SKIV is a bridgehead that can target the Middle East, Europe, and even the U.S. market." This is because Saudi Arabia has recently become more advantageous as a production base than Southeast Asian countries, which have been imposed up to 40% or more, as it has been subject to the lowest level of 10% in U.S. mutual tariffs.
According to YUMIN ST, SIIVC has come up with two tenant models while recruiting Korean small and medium-sized companies to move into SKIV. The first is a model for Korean small and medium-sized enterprises to establish local subsidiaries in Saudi Arabia. In this case, the Saudi Industrial Development Fund (SIDF), a sovereign wealth fund, will lend 55-70% of its total investment at long-term low interest rates for up to 20 years. Incentives such as provision of industrial land and partial support for labor costs will also follow.
The second is a model that builds and utilizes a warehouse-type assembly plant in SKIV. If the proportion of product assembly in Saudi Arabia is more than 40%, it will be granted "Made in KSA (Kingdom of Saudi Arabia)" certification and will enjoy tariff benefits when exporting to the United States, the European Union (EU), and Africa.
SKIV is not just an industrial complex that provides land and factories, CEO Kim said. "It is an "all-in-one platform" that brings together financing, corporate services, and export in once place." Saudi Arabia is a geopolitical hub connecting the Middle East, Europe, and Africa, and has recently gained an advantage in exports to the United States in terms of tariffs, he said. "Korean small and medium-sized companies need to take advantage of this."
[Reporter Lee Yunsik leeyunsik@mk.co.kr]