Korea’s startup diplomacy is moving into new territory as Seoul strengthens ties with Riyadh under Saudi Arabia’s Vision 2030. Beyond government-level exchanges, the partnership is opening real market pathways for SMEs in sectors like AI, bio-health, and smart cities. This collaboration between South Korea and Saudi Arabia underscores the country’s ambition to serve as a bridge between Asia’s startup ecosystems and the Middle East’s emerging innovation economy.

Korea and Saudi Arabia Ministers Seal Startup Cooperation in Seoul

On September 26 in Seoul, Korea’s Minister of SMEs and Startups, Han Seong-sook, met with Khalid A. Al-Falih, Saudi Arabia’s Minister of Investment, to discuss expanding cooperation in the SME and startup sectors. The bilateral meeting took place during Al-Falih’s visit to Korea for the “Korea–Saudi Vision 2030 Committee” and was arranged at his request.

Both ministries reviewed past achievements in partnership and agreed to pursue broader collaboration in technology-based entrepreneurship, investment facilitation, and cross-border startup exchange.

Vision 2030 as an Innovation Gateway Between Korea and Saudi Arabia

Saudi Arabia’s Ministry of Investment oversees domestic and foreign investment attraction and has been pursuing economic diversification and new industry growth under its Vision 2030 strategy.

Cooperation with Korea’s Ministry of SMEs and Startups (MSS) has accelerated since Al-Falih’s participation in COMEUP 2022, Korea’s flagship startup festival.

Key milestones include:

• 2023: Launch of the Global Business Center (GBC) in Riyadh, providing office space and settlement support for Korean SMEs.
• Entrepreneur License Program: Saudi Arabia introduced preferential treatment for foreign startups, with Korean companies among the beneficiaries.
• 2025: Introduction of a Korea–Saudi cooperation program to select promising SMEs in AI, bio-health, content, and smart cities, offering structured pathways into the Middle Eastern market.

This cooperation reflects a strategic shift by both governments to integrate startup policy into broader economic and diplomatic ties.

How AI, Biohealth, and Smart City Startups Are Gaining Traction in the Middle East

Minister Han Seong-sook emphasized the scale of opportunity:

“Saudi Arabia is the economic center of the Middle East and has achieved remarkable results in diversification and new industry development under Vision 2030. For Korea’s innovative and ambitious SMEs, Saudi Arabia is a market of unlimited opportunity.”

She added:

“With stronger ties between our innovation ecosystems, Korea and Saudi Arabia can position themselves as partners leading the global startup ecosystem.”

Minister Al-Falih highlighted the need to deepen collaboration in technology-driven sectors and reaffirmed the ministry’s commitment to supporting Korean startups entering the Saudi market.

Can Korea Become the Asia–MENA Startup Bridge?

The partnership positions Korea as a strategic bridge between Asia’s startup ecosystems and the Middle East’s rapidly diversifying economy. Saudi Arabia offers Korean founders access not only to capital and infrastructure but also to a growing consumer base and regional investment networks.

Furthermore, this collaboration establishes a clearer policy framework that lowers entry risks and provides global investors with greater confidence in the Middle Eastern market. The creation of joint programs in AI, biotech, smart cities, and content also aligns with sectors already prioritized in Korea’s domestic innovation agenda, enabling synergy between domestic policy and overseas expansion.

Comparatively, the Korea–Saudi partnership mirrors initiatives in ecosystems such as Singapore and Israel, where government-led frameworks have successfully anchored international startup exchange and cross-border venture capital.

Why the Middle East May Be Korea’s Next Globalization Test

The meeting between Han and Al-Falih underscores how startup diplomacy is becoming central to bilateral economic relations. With institutional backing, Korea’s SMEs and startups are gaining structured pathways into Saudi Arabia and, by extension, the broader Middle East.

If sustained, the partnership could elevate Korea’s role as a global startup hub that not only fosters innovation at home but also channels it into high-growth regions abroad. For global founders and investors, the Korea–Saudi corridor now represents a tangible new entry point into one of the world’s fastest-evolving innovation economies.

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