TLDR:
- The United Arab Emirates plans to invest up to $1 billion in South Korean startups through a joint venture with AIM Global Foundation and LB Investment.
- This investment is part of a larger $30 billion plan to invest in strategic sectors in South Korea, including nuclear power, defense, and clean energy.
The United Arab Emirates (UAE) is set to invest a maximum of $1 billion in South Korean startups through a joint venture with AIM Global Foundation and LB Investment. This investment is part of the UAE’s broader plan to allocate $30 billion across strategic sectors, including nuclear power, defense, and clean energy in Asia’s fourth-largest economy. Abu Dhabi-based venture capital firm AIM Global Foundation and Seoul-based LB Investment will establish the joint venture by attracting institutional investors from the UAE. LB Investment, a leading VC firm known for investing in companies like K-pop sensation BTS’ agency HYBE Co. and game developer Pearl Abyss, will manage the JV’s portfolio for Korean ventures.
The UAE aims to execute its $30 billion investment plan for Korea through its sovereign wealth funds, including Mubadala Investment Co. This announcement was made during Korean President Yoon Suk Yeol’s visit to Abu Dhabi in January 2023. The UAE will begin investing in Korean startups with a focus on growth sectors like smart cities, renewable energy, and fintech, marking a shift from traditional mega-deals in construction and energy projects in the Middle East.
The partnership between the UAE and Korea is expected to bring new opportunities for both countries, particularly in the startup and technology sectors. The AIM Global Foundation, which hosts the Annual Investment Meeting Congress in Abu Dhabi, will play a pivotal role in connecting investors, policymakers, and entrepreneurs from both countries. LB Investment’s Chief Executive Park Kiho recently spoke at the AIM Congress, highlighting the growing collaboration between Korean and UAE investors in the innovation and technology space.
