Weapons exports, hydrogen deals shine on Moon's trip

President Moon Jae-in walks with first lady Kim Jung-sook upon their arrival at Seoul Airport in Seongnam, Gyeonggi Province, Saturday, after finishing an eight-day trip to the United Arab Emirates, Saudi Arabia and Egypt. Yonhap

Rising NK threats, botched summit with Abu Dhabi leader dent achievements

By Nam Hyun-woo

President Moon Jae-in returned to Korea after his eight-day state visits to the United Arab Emirates (UAE), Saudi Arabia and Egypt, clinching a set of deals in defense exports, hydrogen cooperation and economic cooperation with those countries.

But domestic headaches awaited his arrival. During his absence from South Korea, tensions have been mounting as North Korea is set for more provocations following its test-firings of missiles earlier this month.

Moon returned home from Cairo on Saturday, and after staying three days in Dubai, two days in Riyadh and two days in Cairo to meet the leaders of those countries.

Before embarking on his overseas trips, Moon was under pressure to make tangible achievements as his trips came amid continued spread of the Omicron variant and North Korea's missile threats.

Moon focused on economic partnerships with the countries he visited, including the hydrogen economy, defense and free trade agreements.

President Moon Jae-in poses with the ruler of Dubai and UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum at Expo 2020 Dubai, Sunday. Yonhap

Highlighting those achievements was a deal to export the domestically developed Cheongung-II medium-range surface-to-air missile system to the UAE. During Moon's meeting with the ruler of Dubai and UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum, Monday, the companies involved in the deal exchanged contracts.

The deal, reportedly worth 4 trillion won ($3.36 billion), marked the single most lucrative weapons export contract in the history of Korea's defense industry, and is expected to help Korea develop a stronger presence in the Middle Eastern and other markets.

Along with the missile deal, a South Korea-UAE MOU on defense partnership was inked during Moon's stay, allowing the two countries to research, develop, purchase and produce weapons systems together.

President Moon Jae-in listens to his Egyptian counterpart Abdel Fattah El-Sisi during their summit at the latter's presidential palace in Cairo, Thursday (local time). Yonhap

Korea was expected to sign a deal during Moon's visit to export its K-9 howitzers to the Egyptian military, but the President returned home without completing the deal.

Just hours before Moon was to leave Cairo on Friday, Defense Acquisition Program Administration (DAPA) Minister Kang Eun-ho told reporters that the two countries were still in negotiations on the howitzers, based on the common understanding that they are necessary for the Egyptian military. The Korean side has offered several options and the Egyptian side was contemplating them, according to Kang.

Alongside the defense efforts, Korea signed a number of hydrogen deals with the UAE and Saudi Arabia, which are striving to reduce reliance on oil and nurture hydrogen production as their next big revenue generator.

In the UAE, Moon attended a business roundtable on bilateral hydrogen cooperation, joined by more than 25 leaders of hydrogen-related companies from both countries. Also, Korea National Oil Corporation, SK Gas and Abu Dhabi National Oil Company have signed an MOU on joint research into hydrogen and ammonia as energy sources.

With Saudi Arabia, nine MOUs were inked for bilateral cooperation in ammonia and hydrogen supply chain development, with Korean companies such as Korea Electric Power Corp. (KEPCO) and S-Oil partnering with Saudi Aramco.

President Moon Jae-in talks with Saudi Arabia Crown Prince Mohammed bin Salman Al Saud during an official welcoming ceremony at King Khalid International Airport in Riyadh, Tuesday. Yonhap

Free trade agreements were also notable achievements of Moon's trip.

On Wednesday, Cheong Wa Dae announced it will resume talks for a free trade agreement with the Gulf Cooperation Council within the first quarter of this year, nearly 12 years after negotiations were halted with the alliance of six Middle Eastern countries.

While in Egypt, Korean and Egyptian trade ministers signed an MOU on Thursday to conduct joint research on a trade and economic partnership, to study the feasibility of a potential free trade agreement between the two countries.

"The agreements are anticipated to be gateways for South Korean companies' entry into Middle East and African markets," Korea's Trade Minister Moon Sung-wook said.

President Moon Jae-in holds a phone call with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan at a hotel in Dubai, Monday (local time). Yonhap

Despite the achievements, there were also shortcomings that dented Moon's trip.

Initially, Moon was scheduled to visit Abu Dhabi on Monday, where he would have a summit with Crown Prince Sheikh Mohammed bin Zayed Al Nahyan. However, the visit was canceled and the summit also could not take place, upon the crown prince's last-minute cancellation.

The summit between the two was replaced with a 25-minute phone conversation on Monday night, but no reason was given, with Cheong Wa Dae officials saying Abu Dhabi cited "inevitable reasons."

Against this backdrop, a drone attack, claimed by Yemen's Houthi rebels, blew up three oil tankers and caused a fire at an extension of Abu Dhabi International Airport, killing three people on Monday, sparking speculation that the cancellation was related to the attack.

Im Jong-seok, former chief of staff to Moon and special envoy to the UAE, told reporters later that the canceled meeting with the Abu Dhabi crown prince "has nothing to do with the attack," but refused to elaborate further.

President Moon Jae-in presides over a meeting with his aides in the conference room of the presidential jet while heading to Dubai on Jan. 15. Yonhap

North Korea's escalating threats also outshined Moon's achievements during the trip.

On Jan. 14, a day before Moon was to begin his trip, North Korea fired two ballistic missiles, and the President ordered his National Security Adviser Suh Hoon to stay in Seoul to keep watch on the situation.

However, the North launched two more missiles on Monday, while Moon was in the UAE, marking its fourth round of missile tests this year. Three days later, North Korea threatened to lift its moratorium on nuclear and intercontinental ballistic missile tests, putting Moon's inter-Korean peace initiative in peril.

In a written interview with an Egyptian newspaper published on Thursday, Moon said, "Given the current situation, it seems uneasy to build peace (with North Korea), because the path to peace is yet to be systemized."

Along with the rising tension with Pyongyang, Moon is taking on a number of urgent tasks after his return.

Instead of attending the opening ceremony of the Beijing Winter Olympics, Moon is expected to hold an online summit with Chinese President Xi Jinping. Though Cheong Wa Dae has yet to confirm this, sources said the issue of Moon's continued balancing act between Washington, Beijing and North Korea will likely be on the table.