Korea-Saudi Shipping Deal Secures Trade

Riyadh, Saudi Arabia

By Wendy Laursen 2015-03-04 20:44:18

South Korea and Saudi Arabia have signed a maritime transport deal aimed at helping to secure the oil supply between the two countries.

Ships and crew travelling between the two countries will be treated as nationals, and crew identification cards issued by either nation will be accepted. According to the Ministry of Oceans and Fisheries, this will significantly enhance the safety of South Korean ships and their crew members in Saudi Arabia, reports news agency Yonhap.

It will also reduce the risk involved in South Korea’s oil imports. The country imports over 2.8 million barrels of oil from Saudi Arabia each year, about 30 percent of its total oil imports.

The deal was signed in Riyadh on Tuesday during a two-day diplomatic visit by South Korean President Park Geun-hye to Saudi Arabia. Park and Saudi’s King Salman also signed a MoU on nuclear energy cooperation.

The total volume of trade exchange between the two countries amounted to $45 billion last year.

South Korea has similar bilateral maritime transport agreements with 21 other countries, including the United States, China and Russia.