South Korea-UAE Tech Alliance Targets Third-Country Markets

South Korea's defense exports to the Middle East, valued at an estimated $10 billion, are finding their most strategic partner in the UAE. As Presidential Chief of Staff Kang Hoon-sik departed for Abu Dhabi on February 24, a new chapter in bilateral strategic economic cooperation is unfolding.

Beyond Traditional Arms Deals

Kang announced his mission before departure: "I will seek to expand cooperation in the defense industry, AI, nuclear energy and the cultural industry, aiming in particular to deliver tangible results by combining the technology and capital of the Republic of Korea and the UAE to jointly enter third-country markets."

This three-day visit as President Lee Jae-myung's special envoy for strategic economic cooperation signals a shift from traditional buyer-seller relationships to strategic partnership. The timing follows high-level diplomatic exchanges, including Lee's November summit with UAE President Mohamed bin Zayed Al Nahyan in Abu Dhabi and October talks with Abu Dhabi Crown Prince Sheikh Khalid bin Mohamed Al Nahyan during the APEC summit in Gyeongju.

From Missiles to Microchips

The UAE has already proven its commitment to Korean defense technology, signing a 2022 contract for the Cheongung II mid-range surface-to-air missile system. But this relationship is evolving rapidly beyond traditional defense procurement.

The scope now encompasses artificial intelligence, nuclear energy, and cultural industries. This expansion comes as the UAE recently joined the US-led AI supply chain coalition that includes South Korea, positioning both nations as key players in the global tech ecosystem.

Khaldoon Khalifa Al Mubarak, chairman of Abu Dhabi's Executive Affairs Authority, visited Seoul last month to discuss follow-up steps for bilateral defense industry cooperation, demonstrating the UAE's proactive approach to this partnership.

The Third-Country Strategy

What makes this cooperation particularly intriguing is the explicit focus on "jointly entering third-country markets." This isn't just about South Korea selling to the UAE—it's about creating a combined force that leverages Korean technological expertise and Emirati capital to compete globally.

For South Korean conglomerates like Samsung and Hyundai, which have already used the UAE as a gateway to Middle Eastern and African markets, this represents a formalization of an existing strategy. But the inclusion of cutting-edge sectors like AI and nuclear technology suggests ambitions that extend far beyond traditional infrastructure projects.

Geopolitical Calculations

The timing of this deepened cooperation reflects broader geopolitical realities. As US-China competition intensifies, both South Korea and the UAE are seeking to maintain strategic autonomy while maximizing economic opportunities.

The UAE has mastered the art of balancing relationships with major powers—maintaining strong ties with the US while conducting pragmatic business with China and Russia. South Korea, facing its own strategic dilemmas in the US-China rivalry, may find valuable lessons in the UAE's approach.

For American policymakers, this partnership presents both opportunities and challenges. While it strengthens the US-led AI coalition and enhances regional security through advanced defense systems, it also demonstrates how allies are building independent relationships that don't always align perfectly with Washington's priorities.