Presidential Office: "UAE $30 Billion, All Invested Within Yoon's Term"

Sangmok Choi, Senior Executive: "No Size Limit on Investment Targets"
Supporting Companies from Various Sectors to Collaborate with UAE

[Asia Economy Reporter Ki-min Lee] The Presidential Office announced on the 31st that it will ensure the entire $30 billion (approximately 37 trillion won) investment from the United Arab Emirates (UAE) will be made within the current administration's term.

Choi Sang-mok, Senior Secretary for Economic Affairs, stated at a briefing at the Yongsan Presidential Office in the afternoon, "We will consider the cases of the UK and France, which set investment commitment periods of 5 or 10 years, respectively," emphasizing this commitment.

At the 'UAE Investment Attraction Follow-up Measures Review Meeting' chaired by President Yoon in the morning at the Korea International Trade Association in Samseong-dong, Seoul, the government pledged swift implementation regarding UAE investments.

First, to implement follow-up measures for UAE investments, the government established the 'Korea-UAE Investment Cooperation Platform,' composed of a 'High-Level Investment Cooperation Dialogue' and a 'Working-Level Investment Cooperation Channel.' The high-level dialogue is overseen by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, while the working-level channel is co-led by Deputy Prime Minister Choo and Kang Seok-hoon, Chairman of the Korea Development Bank.

Additionally, the government set up the 'UAE Investment Cooperation Committee' and the 'UAE Investment Cooperation Network' to support the Investment Cooperation Platform. The Investment Cooperation Committee is chaired by Deputy Prime Minister Choo Kyung-ho and includes relevant ministries, the Korea Development Bank, the Korea Investment Corporation (KIC), and other quasi-governmental agencies and public enterprises.

Regarding the Investment Cooperation Committee, Senior Secretary Choi explained, "Depending on the issue, private experts will participate as advisory members in meetings," and "Individual investment matters will be managed under the overall supervision of the Korea Development Bank, with participation from public investment institutions, private investors, and companies through the Investment Cooperation Network."

He added, "Discussions between the government and the UAE are currently ongoing regarding investment sectors, targets, methods, and duration," and noted, "It is expected that decisions will be made in line with existing investment cooperation cases that the UAE has concluded and implemented with countries such as the UK and France."

[Image source=Yonhap News]

Senior Secretary Choi emphasized, "Investment methods will also be discussed in parallel, combining direct investments and indirect investments through private equity funds, similar to the UK and France," and "While considering the UK and France cases where the investment commitment period is set at 5 or 10 years, we will push to ensure all investments are made within the current administration's term."

The UAE is cooperating with the UK and France in common fields such as new technologies and energy. Specifically, the UK is collaborating additionally in bio and infrastructure sectors, while France is cooperating in semiconductors and space sectors.

The government plans to expand investment sectors and targets to ensure the entire UAE investment amount is invested within President Yoon Suk-yeol's term. Regarding this, Senior Secretary Choi said, "There are no restrictions on company size for investment targets, including startups, ventures, small and medium enterprises, mid-sized companies, and large corporations," and "We are discussing cooperation opportunities with the UAE for companies of various sizes and fields, focusing on new technologies, energy, bio, and new growth sectors."

Selection of target companies for investment will be determined according to the portfolio, and the government plans to actively share information on excellent domestic ventures and SMEs with the UAE side to support securing investment opportunities for them. Senior Secretary Choi expressed expectations, saying, "While large corporations have already cooperated extensively with the UAE, small and venture companies may lack information on that side. Compared to before the cooperation between the two governments, relatively more opportunities may be directed to such sectors."

To facilitate swift investment cooperation, the government plans to hold the first meeting of the UAE Investment Cooperation Committee within next month and organize a Korea-UAE joint briefing session for domestic investment institutions and companies.

Meanwhile, regarding the International Monetary Fund's (IMF) downward revision of South Korea's economic growth forecast for this year, Senior Secretary Choi explained, "The IMF's initial forecast itself was higher than that of the Bank of Korea or the government," and added, "This is simply an update of a delayed forecast, so it is not appropriate to say that our forecast was lowered."

According to the government, the IMF raised the global economic growth rate by 0.2 percentage points this year but lowered South Korea's economic growth forecast from 2.0%, announced in October last year, to 1.7%.