South Korea and UAE to reduce import duties and enhance relations | Global News

South Korea and the United Arab Emirates have solidified their trade relationship with the signing of a new agreement at a summit held on Wednesday. The agreement aims to significantly reduce import duties and strengthen business and investment ties between the two nations.

President Yoon Suk Yeol’s office highlighted the special bond between the leaders of South Korea and the UAE, emphasizing the opportunity to enhance their strategic partnership. The summit, attended by UAE President Sheikh Mohammed bin Zayed Al Nahyan, focused on energy and defense cooperation, with South Korea looking to capitalize on the investment potential of the energy-rich Gulf state.

As part of the agreement, the UAE reaffirmed its commitment to invest $30 billion in South Korean businesses, particularly in areas such as nuclear power, defense, hydrogen, and solar energy. The Abu Dhabi National Oil Company also signed a letter of intent for the construction of at least six LNG carriers by Hanwha Ocean and Samsung Heavy Industries, valued at approximately $1.5 billion.

Additionally, both countries formally signed a Comprehensive Economic Partnership Agreement that will eliminate tariffs on South Korean arms exports once ratified. This move is in line with South Korea’s ambition to become the world’s fourth-largest defense exporter by 2027.

The agreement will also see the UAE gradually reduce import duties on automobiles over the next decade, while South Korea will eliminate tariffs on crude oil imports. Ultimately, more than 90% of imports from both nations will be tariff-free, leading to increased trade and cooperation in various sectors.

The UAE is also set to sign similar agreements with Malaysia, Vietnam, and the Philippines in the coming months, further expanding its trade partnerships in the region. The summit concluded with discussions between Sheikh Mohammed and top South Korean conglomerate leaders, signaling a commitment to enhancing cooperation in the defense industry.