Korea and Saudi Arabia Weigh Joint Deep-Tech Fund for AI and Semiconductors

The Middle East has become one of the most important export destinations for Korean small and medium-sized enterprises, and Saudi Arabia sits at the center of that momentum. On July 16, the two governments moved to turn that trade relationship into a deeper technology partnership—one that could channel joint capital into AI and semiconductor startups.

Roh Yong-Seok, Vice Minister of Korea’s Ministry of SMEs and Startups (MSS) and its acting minister, met in Seoul with Abdullah Alswaha, Saudi Arabia’s Minister of Communications and Information Technology, to discuss cooperation on startups and small businesses in AI, digital, and other frontier fields.

Saudi Arabia’s Ministry of Communications and Information Technology oversees the kingdom’s digital economy transition and the growth of its ICT industry. Its remit spans digital transformation, e-government, technology advancement, attracting innovative companies from abroad, and building a startup ecosystem. Alswaha has led the ministry since April 2017, and it was Riyadh that requested the meeting to explore cooperation across these areas.

A joint fund, taking shape

The agenda ran across three tracks: SME AI and digital transformation (AX and DX), venture investment and a joint fund, and startup growth and overseas expansion.

Roh underscored the strategic weight of the relationship, describing Saudi Arabia as one of the largest markets for Korean SME exports in the Middle East. In the first quarter of 2026, those exports reached roughly 270 million dollars—second among 20 Middle Eastern countries at 21.1 percent. He also pointed to groundwork already laid, including a Global Business Center (GBC) opened in Riyadh in 2023 and, since that year, mutual participation by officials and startups in each country’s flagship startup events: Korea’s COMEUP and Saudi Arabia’s BIBAN.

The most concrete item on the table was the joint fund. On venture investment, Roh introduced the track record of Korea’s Fund of Funds, a government policy vehicle, as both sides weighed the new fund now under discussion. The vehicle is being shaped between Korea Venture Investment Corporation (KVIC) and Riyadh Valley Company (RVC), a Saudi government investment arm, with both institutions set to co-invest in deep-tech companies working in areas such as AI and semiconductors.

KVIC is a government-backed fund-of-funds manager established in 2005 under the MSS, running the Korea Fund of Funds that anchors much of the country’s venture capital ecosystem. RVC, founded in 2010 as the investment arm of King Saud University, backs venture capital and strategic projects at home and abroad as part of Saudi Vision 2030. With Alswaha currently sitting on RVC’s board, Roh asked for his help in launching the fund before year-end.

Beyond capital: AX, DX, and COMEUP

The conversation also turned to SME digital transformation. Roh outlined Korea’s policy direction—including a planned law to accelerate AI adoption among SMEs—and encouraged Saudi interest and investment in Korean companies working in AI and other frontier fields.

On startups, he highlighted the strengths of Korea’s ecosystem and invited Saudi officials, investors, and founders to join COMEUP, which runs from December 9 to 11 this year.

Building on the meeting, Roh said the ministry would actively support more practical exchange—from launching the joint fund to driving investment and helping companies enter each other’s markets.

The push fits a broader pattern of Korea–Middle East technology diplomacy. KVIC’s international footprint already reaches the region, with the institution taking part in events such as the K-Global Star Meetup held in Riyadh in February 2026, signaling that the joint fund now under discussion is less a standalone deal than the next step in a deepening bilateral relationship.