TLDR:
- The UAE plans to invest up to US$1 billion in Korean startups as part of a larger pledge to invest US$30 billion in South Korean companies.
- The partnership will establish a joint venture investment company with LB Investment to manage the venture funds.
The United Arab Emirates (UAE) is set to invest US$1 billion in Korean startups, marking the first step in fulfilling a promise made to the South Korean government last year to invest a total of US$30 billion. The UAE is partnering with domestic venture capital (VC) firms, including LB Investment, to manage the venture funds. The joint venture investment company, in collaboration with the AIM Global Foundation, aims to attract funds from institutional investors within the UAE. LB Investment, a first-generation VC in South Korea, will manage the venture funds and has a track record of discovering unicorns and achieving significant returns on investments.
During President Yoon Suk-yeol’s state visit last year, the UAE announced its intention to elevate its relationship with South Korea to a “special strategic partnership.” The UAE views South Korea as an innovation powerhouse and has chosen to invest in Korean companies due to their outstanding talent and research and development capabilities. Through this partnership, the UAE aims to have a positive impact on the global economy and society, opening up new avenues of cooperation in the global VC industry.
The establishment of this joint venture between the UAE and Korean VC firms signals a significant milestone in international investment and collaboration, showcasing the potential for growth and innovation in the global startup ecosystem.
