Middle East expert, attorney sheds lights on growing Korea-Saudi partnership

By Lee Kyung-min

Publicly- and privately-run firms in Saudi Arabia can expand partnerships with their Korean peers, incentivized by a strong set of foreign investor protection measures in Korea, according to a Middle East expert and attorney on Friday.

Guarantee of remittance to foreign countries and exemptions to the safeguard clause on foreign exchange (FX) transactions are some of the measures.

“Foreign investors in the Middle Eastern country will be able to have certain remittances of proceeds guaranteed,” Joseph Lee, a partner and a senior foreign attorney at Yoon & Yang, said. “They can proceed from the stocks, the principal, interest and service charges paid under a loan contract.”

More important is the exception to a law governing FX transactions, according to the attorney licensed in Britain and New York.

Under the Korean law, FX transactions may be temporarily suspended or restricted due to natural calamities, war, armed conflict or grave and sudden changes in domestic and foreign economic conditions.

However, such measures shall not apply to foreign investment.

“The Korean government is committed to maintaining foreign investor confidence during times of crisis, as indicated by the exemptions available to foreign investment during crisis,” he said. “Capital flows, mergers, acquisitions and portfolio investments will continue, aided by the government measure.”

These were the key contents of the seminar he gave during Riyadh International Disputes Week 2025, held in Riyadh, Saudi Arabia, on Feb. 24 (local time).

The five-day event was a leading global event in the international legal and dispute resolution field, organized jointly by the Saudi Arabian government and the Saudi Center for Commercial Arbitration.

Over 250 speakers shared their thoughts on a variety of topics throughout 87 sessions.

Among the attendees were Korean firms POSCO E&C, the Ministry of Investment of Saudi Arabia, the Korean Embassy in Saudi Arabia, the Korea Trade-Investment Promotion Agency (KOTRA) and representatives from major global law firms and businesses.

Topics discussed included fostering economic relations between the two countries, with the participation of KOTRA, the Export-Import Bank of Korea, the Korea Trade Insurance Corp. and the Korea Overseas Infrastructure & Urban Development Corp.