Historical Context
Oman-South Korea relations are primarily anchored in energy trade and industrial cooperation, having expanded significantly since the 1980s as South Korea emerged as a major LNG importer and industrial powerhouse. Korean companies have been involved in Oman’s petrochemical, construction, and shipbuilding sectors for decades. The relationship has grown in strategic importance as South Korea seeks to diversify energy supply sources and Oman looks for technology and investment partners for its industrialisation ambitions.
Economic Partnership
South Korea is a major buyer of Omani LNG under long-term supply agreements with Oman LNG. Bilateral trade reaches approximately USD 5-6 billion annually, heavily weighted toward energy exports. Korean industrial conglomerates including Daewoo, Samsung Engineering, and Hyundai have been awarded major construction and engineering contracts in Oman’s energy and infrastructure sectors. The Duqm Refinery project, a joint venture between Oman Oil and Kuwait Petroleum, has involved Korean engineering expertise. Korean shipbuilding capabilities align with Oman’s port and maritime ambitions.
Strategic Dimensions
The relationship has a growing strategic dimension as South Korea increases its Middle East engagement. Defence cooperation includes naval exercises, military equipment procurement, and training exchanges. South Korea’s interest in Middle East energy security – it imports virtually all its hydrocarbons – gives relationships with producers like Oman strategic weight. Korea’s technological capabilities in electronics, automotive, shipbuilding, and nuclear energy represent potential partnership areas that extend beyond traditional energy trade.
Future Outlook
Green hydrogen offers a transformative partnership opportunity. South Korea has ambitious hydrogen economy targets and will need to import green hydrogen at scale. Oman’s production ambitions and Korea’s import needs create natural complementarity, with government-to-government hydrogen cooperation agreements already in discussion. Korean expertise in industrial technology, smart manufacturing, and digital infrastructure could support Oman’s Vision 2040 goals. The challenge is building relationship depth beyond energy transactions to encompass technology transfer and joint industrial development.