UAE to invest up to $1 bn in S.Korean ventures

The United Arab Emirates is set to invest a maximum of $1 billion in South Korean startups via a joint venture, as a part of its mid- to long-term plan to spread $30 billion across strategic sectors including nuclear power, 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 UAE institutional investors, 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 ventures.

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

The UAE is set to start investments in Korean startups in earnest as the Middle Eastern country looks to partner with overseas ventures in growth sectors such as smart city, renewable energy and fintech, according to sources.

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

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

LB Investment’s Chief Executive Park Kiho spoke at the AIM Congress on Tuesday, marking the first person from a Korean VC firm to speak at an opening session of the congress.

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

Write to Eun-Yi Ko at koko@hankyung.com


Jihyun Kim edited this article.