This article was posted on the ChosunBiz MoneyMove site on July 28, 2025, at 5:53 p.m.
The acquisition of a minority stake in Kakao Mobility by VIG Partners is stalled. There are rumors in the market that the withdrawal of investment decisions by the Abu Dhabi sovereign wealth fund Mubadala is behind this.
Mubadala, with assets under management nearing $330 billion (approximately 456 trillion won), continues to increase its investments in the Asian market; however, its investment activities in Korea are still at a nascent stage. Although there was a promise to invest $30 billion (approximately 41 trillion won) in Korean corporations during the previous administration, there is skepticism about the possibility of fulfilling that promise now that the administration has changed.
According to the investment banking industry on the 28th, VIG Partners is pushing for equity acquisition from Kakao Mobility's financial investors, but is unable to make progress even though a stock purchase agreement is imminent. Mubadala is said to have planned to invest approximately $700 million (about 1 trillion won) in partnership with Goldman Sachs.
The Kakao Mobility deal has garnered attention as one of the few investments in Korea under consideration by Mubadala. Known for its significant interest in the Asian market among the sovereign wealth funds in the UAE, Mubadala has repeatedly stated its intention to strategically expand its investments in the Korean market in recent years, but the actual number of investments executed has been minimal.
Typical examples of Mubadala's investments in Korean corporations include Osstem Implant and HUGEL. In 2023, when MBK Partners and UCK Partners teamed up to acquire Osstem Implant, Mubadala participated in a co-investment arrangement; earlier, in 2021, when the GS Group consortium acquired a 47% equity stake in HUGEL, Mubadala was also named in the consortium.
However, it would be unreasonable to view these corporations as ones that Mubadala directly discovered and invested in proactively. First, in the case of Osstem Implant, industry insiders analyze that Mubadala established a relationship by investing in the MBK Partners' blind fund, which led to the co-investment. The situation is similar for HUGEL. The institution leading the consortium at that time was the CBC Group, and Mubadala is one of the principal limited partners of the blind fund created by CBC.
Therefore, if Mubadala participates in the investment in Kakao Mobility this time, it would be a step forward for Mubadala in investing in Korean corporations. Until now, Mubadala had no established relationship, such as investing in the VIG Partners' blind fund. This time, it has been reviewing ways to invest in a project fund.
According to sources in the investment banking industry, Mubadala has much interest in the Korean entertainment and tech industries, but its understanding of individual corporations is reportedly still low. One industry insider noted, 'It is still in the stage of studying the market, and it is seen as risky to discover and invest directly in corporations.'
Mubadala has effectively assigned Partner Ahn Seung-gu, who was in charge of investments in the Asian region, exclusively to the Korean market, forming an internal organization, but industry insiders suggest that there is still a long way to go for investment in Korea to become more robust.
The variable of 'regime change' is likely to significantly affect Mubadala's ability to accelerate investments in Korea.
Earlier in May 2023, Mubadala established a dedicated organization named 'UAE Investment Cooperation Center' in the Industrial Bank of Korea. This was a follow-up action to the MOU signed in January of the same year, which stipulated that the UAE would implement an investment of $30 billion in Korea. It is reported that the center has about ten employees from the bank and Mubadala.
An insider in the investment banking industry remarked, 'As the Yoon Suk-yeol administration pushed for attracting investments from the UAE, it is uncertain whether this government can maintain continuity in those efforts.'