South Korea and Saudi Arabia deepen AI and startup partnership
Joint AI investment plans strengthen South Korea-Saudi Arabia technology cooperation.
South Korea and Saudi Arabia have agreed to deepen cooperation on startups, AI and digital transformation following talks in Seoul between South Korean Vice Minister of the Ministry of SMEs and Startups (MSS) Roh Yong-Seok and Saudi Minister of Communications and Information Technology Abdullah Alswaha.
The discussions focused on expanding collaboration in AI, venture investment, digital transformation and innovative startups.
A central topic was a proposed joint investment fund, currently under discussion between Korea Venture Investment and Saudi Arabia’s Riyadh Valley Company, which would co-invest in deep-tech companies developing strategic technologies such as AI and semiconductors.
The Korean government said it hopes to launch the fund before the end of 2026.
The ministers also discussed accelerating the digital transformation of small and medium-sized enterprises through wider AI adoption. South Korea outlined planned legislation to encourage AI deployment among smaller businesses, while inviting greater Saudi investment in Korean companies developing AI and other frontier technologies.
The meeting also highlighted broader efforts to strengthen bilateral startup ecosystems. South Korea pointed to initiatives including its Global Business Center in Riyadh and participation in startup events such as COMEUP and Saudi Arabia’s BIBAN. Both governments agreed to encourage greater investment, business exchanges and market access for companies in both countries.
Why does it matter?
The partnership illustrates how international AI cooperation is increasingly centred on investment, startup ecosystems and industrial policy rather than research alone. By combining Saudi capital with South Korea’s technology sector, both countries aim to accelerate the commercial development of strategic technologies such as AI and semiconductors.
The discussions also reflect a broader trend towards linking AI adoption with SME competitiveness and cross-border venture investment. Such partnerships could strengthen innovation ecosystems while supporting national ambitions for digital transformation and economic diversification.
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