The UAE will invest up to $1 billion in South Korean companies

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Korean President Yoon Suk Yeol (left) shakes hands with UAE President Mohamed bin Zayed Al-Nahyan at the Barakah Nuclear Power Plant site in January 2023 (Courtesy of Yonhap)

The United Arab Emirates plans to invest up to $1 billion in South Korean startups through a joint venture, as part of its medium-term plan to spend $30 billion on strategic sectors including nuclear, defense and clean energy. of Asia’s fourth largest economy.

Abu Dhabi-based venture capital firm AIM Global Foundation and Seoul-based LB Investment will set up a JV by attracting institutional investors from the UAE, according to sources familiar with the matter on Tuesday.

LB Investment, a leading VC firm that has invested in K-pop sensation BTS agency HYBE Co., game developer Pearl Abyss, Chinese dating app Tantan and many unicorn companies, will manage the JV’s portfolio for Korean companies.

The UAE is trying to implement its $30 billion investment plan for Korea through its sovereign wealth funds, including Mubadala Investment Co. The Middle Eastern country announced the plan during Korean President Yoon Suk Yeol’s visit to Abu Dhabi in January 2023.

The UAE is poised to make serious investments in Korean startups as the Middle Eastern country looks to collaborate with foreign companies in growth sectors such as smart city, renewable energy and fintech, sources said.

This will add fresh air to the UAE-Korea partnership, which has long focused on mega deals for construction and energy projects in the Middle East, sources said.

AIM Global Foundation organizes the Annual Investment Meeting (AIM) Congress in Abu Dhabi, one of the largest investment forums in the Middle East. The three-day forum, supported by the UAE Ministry of Industry and Advanced Technology, brings together around 900 speakers, including investors, policymakers and entrepreneurs.

LB Investment Chief Executive Park Kiho spoke at the AIM conference on Tuesday, becoming the first Korean venture capital firm to speak at an opening session of the forum.

Among other Korean speakers at the forum are Seoul Mayor Oh Se-hoon and employees of LB Investment’s portfolio company such as Hong Soonjoon, head of online fashion platform Musinsa, and Chief Operating Officer of autonomous ship technology Seadronix, Noh Kyongsoo.

Write to Eun-Yi Ko at [email protected]
Jihyun Kim edited this article.