Why Saudi Arabia matters for Korean companies
Saudi Arabia and the Republic of Korea have built a structured, government-level framework around Saudi Vision 2030. The Saudi-Korean Vision 2030 Committee was set up in 2017 to organise cooperation across sectors such as energy and manufacturing, smart infrastructure, health and SMEs. In October 2023 the two countries announced a "future-oriented strategic partnership" and signed a memorandum to establish a Strategic Partnership Council, naming it and the Vision 2030 Committee as focal points for implementing agreed outcomes. Their joint statement also referred to exploring investment in areas including the hydrogen economy, smart cities, future mobility and startups.
For a Korean company, this means the political channel is open. Whether there is a commercial case for your product or service is a separate question, and it needs its own analysis.
From projects and exports to a permanent presence
Many Korean companies first know Saudi Arabia through project work: EPC contracts, construction, energy, plant equipment, manufacturing supply or technology delivery. That route often relies on a project-specific setup, a local agent or a distributor. Moving to a permanent entity is a different decision. It changes how you contract, hire, invoice, pay tax and are seen by Saudi customers, especially government and semi-government buyers.
Before you register an entity, be clear on three things: who your Saudi customers will be over the next few years, which activities must happen in the Kingdom, and whether you need a local partner or your own entity. Our guide to Saudi market entry options compares the main routes.
What changed in 2025
- Investment registration instead of an investment licence. Under the Investment Law, in effect since February 2025, foreign investors register with the Ministry of Investment (MISA) before starting investment activities, instead of obtaining the former MISA investment licence. Implementing regulations followed in 2025.
- Commercial Registration no longer expires. Under the Commercial Registration Law, in effect since 3 April 2025, the CR no longer has an expiry date. Renewal is replaced by an annual confirmation of the registered data, with consequences if it is missed.
Detailed requirements still vary by activity and are updated. Confirm the current position with the competent authority or a licensed provider. Our guide on setting up a company in Saudi Arabia walks through the registration sequence.
Entry models and the RHQ question
Common models
- Distributor or agent: a lower commitment to test demand, with less control. See finding a distributor or local partner.
- Branch of the Korean company: a direct presence that stays legally tied to the parent.
- Saudi subsidiary: a separate local company, wholly owned or with a Saudi partner, depending on the activity.
- Joint venture: useful where a Saudi partner brings customers, local content or capability, but it is a long-term governance commitment.
Regional headquarters for groups selling to government
If your group sells, or plans to sell, to Saudi government entities, look at the Regional Headquarters (RHQ) Programme early. Since January 2024, government contracting with foreign companies whose regional headquarters sits elsewhere in the region has been restricted, with thresholds and exceptions. An RHQ carries its own obligations, so it is a group-level decision rather than a local one. Read our Saudi RHQ guide and confirm how the rules apply with the competent authority or a licensed legal provider.
Documents and apostille
Korea has been a party to the Hague Apostille Convention since 2007, and Saudi Arabia since 7 December 2022, according to the HCCH status table. In general, Korean public documents such as corporate certificates, board resolutions and powers of attorney can be apostilled in Korea rather than going through full consular legalisation. Saudi authorities may still require Arabic translation and specific formats, so check each document's requirements before you start.
Saudization
Saudi entities must meet Saudization (Nitaqat) targets that depend on activity and company size. These affect the visas you can obtain for Korean staff and engineers. Plan the workforce mix before you sign leases or bring in a project team. Our Saudization and Nitaqat guide explains the logic, and our workforce planning support helps you structure it.
Banking
Opening a corporate bank account is often one of the slower steps. Saudi banks apply their own know-your-customer checks, and they usually ask for the CR, ownership and beneficial ownership documents and identification for authorised signatories. Prepare a clear ownership chart of the Korean group in advance. Account opening is decided by the bank alone.
Useful channels
- KOTRA Riyadh (the Korea Trade-Investment Promotion Agency's Riyadh trade centre) supports Korean companies with market information and business meetings.
- The Embassy of the Republic of Korea in Riyadh, whose commercial section is where KOTRA Riyadh is located, and the Consulate General in Jeddah.
- The Saudi-Korean Business Council, one of the joint business councils under the Federation of Saudi Chambers, working with the Korea Chamber of Commerce and Industry.
These channels are useful for introductions and context. A clear plan for your own company still has to come from your own analysis.
Common pitfalls
- Treating a project contract as proof of a long-term market without testing recurring demand.
- Choosing an entity type before deciding how you will sell to government.
- Underestimating Saudization when planning to bring in a Korean technical team.
- Starting documents late, or apostilling them without checking translation needs.
- Relying on one introduction instead of comparing several partners and providers.
A first-90-days outline
- Assess: confirm the target customers, activities and the case for a permanent entity.
- Decide the model: partner, branch, subsidiary, joint venture, and whether an RHQ applies.
- Prepare documents: collect, apostille and translate the Korean corporate documents.
- Register: MISA registration, Commercial Registration and the follow-on registrations.
- Set up operations: bank account, workforce plan, premises and first hires through licensed channels.
How long each step takes depends on the activity, the documents and the authorities involved.
How TAQUDI helps
TAQUDI, owned and operated by ALDUR Holding in Riyadh, acts as one point of contact between your team and Saudi stakeholders. We assess your situation, advise on the route, compare options, shortlist appropriately licensed legal, tax, corporate and banking-related providers for regulated work, connect you with them, and coordinate the steps, meetings and follow-up. We are not a law firm, accountant, bank, recruiter or government body. See our company set-up, licensing coordination and partner search support.
Start with the Saudi Entry Diagnostic to map your route, or contact us to discuss your plans.
Frequently asked questions
Do Korean companies still need a MISA investment licence?
Since the Investment Law took effect in February 2025, foreign investors register with MISA instead of obtaining the former investment licence. Some activities still need sector licences, so confirm the requirements for your activity with the competent authority or a licensed provider.
Does a Saudi Commercial Registration need renewing?
Under the Commercial Registration Law in force since April 2025, the CR has no expiry date. Instead, the registered data must be confirmed every year, and missing that confirmation has consequences.
Can Korean corporate documents be apostilled for use in Saudi Arabia?
Both Korea and Saudi Arabia are parties to the Hague Apostille Convention, so Korean public documents can generally be apostilled in Korea. Saudi authorities may still require an Arabic translation, so check each document's requirements.
Does a Korean group need a regional headquarters in Saudi Arabia?
It depends mainly on whether the group sells to Saudi government entities. Since January 2024 government contracting with foreign companies whose regional headquarters is elsewhere in the region has been restricted, with thresholds and exceptions. Confirm how this applies with a licensed legal provider.
Who can Korean companies contact for support in Riyadh?
Useful channels include KOTRA Riyadh, the Embassy of the Republic of Korea in Riyadh and the Saudi-Korean Business Council under the Federation of Saudi Chambers. TAQUDI can help you assess your route and coordinate with licensed providers.