South Korea and Saudi Arabia will form a 208.4 billion won ($155 million) joint fund to help Korean startups attract investments and advance to the Middle Eastern market, government officials said Sunday.

Saudi Arabia will inject 195.4 billion won into the fund and Korea Venture Investment Corp. will invest the remaining 13 billion won in it, according to the Ministry of SMEs and Startups.

From Saudi Arabia, Saudi Venture Capital Co. and Public Investment Fund (PIF) Jada will make an investment in the fund. Both countries have agreed to invest at least $100 billion in Korean companies, the ministry said.

The creation of the fund is a follow-up step of the South Korea-Saudi Arabia investment cooperation and startup support agreement signed between President Yoon Suk Yeol and Saudi Crown Prince and Prime Minister Mohammed bin Salman in November last year. (Yonhap)