First joint fund in 20 years

To target data centers, clean energy grids

Korea Post chief Park In-hwan (left) and Korea Development Bank Chairman Park Sang-jin pose for a photo after signing an MOU to establish an AI infrastructure financial cooperation framework at Korea Development Bank's headquarters in Yeouido, Seoul, on Wednesday. [Korea Development Bank]
Korea Post chief Park In-hwan (left) and Korea Development Bank Chairman Park Sang-jin pose for a photo after signing an MOU to establish an AI infrastructure financial cooperation framework at Korea Development Bank's headquarters in Yeouido, Seoul, on Wednesday. [Korea Development Bank]

Korea Development Bank and Korea Post will each contribute 500 billion won ($350 million) to create a joint AI infrastructure fund totaling 1 trillion won.

Korea Development Bank announced Wednesday that it signed an MOU with Korea Post at its headquarters in Yeouido, Seoul, to establish an AI infrastructure financial cooperation framework.

Under the agreement, the two institutions plan to jointly identify high-quality investment targets in AI infrastructure and co-finance large-scale projects. Each will contribute 500 billion won to a tentatively named "AI Infrastructure Fund," which will invest in next-generation data centers, renewable energy facilities and other AI industry infrastructure.

The joint fund marks the first such collaboration between the two institutions in 20 years. Their previous partnership, in 2006, produced a 1 trillion won fund covering education, rail and power generation — backing national infrastructure projects including Ulsan National Institute of Science and Technology (UNIST), Incheon International Airport Railroad, the Shinbundang Line and K-Power plants.

The new fund is expected to support the government's three major megaprojects — semiconductors, physical AI and AI data centers — as well as a southwestern regional development initiative.

The two institutions plan to build AI industry hubs in non-metropolitan areas, particularly in the southwest where renewable energy supply conditions are favorable, linking clean energy grids with large-scale data centers. The initiative aims to decentralize data centers currently concentrated in the Greater Seoul area while fostering related industries and job creation in the regions.

"AI competitiveness hinges on how quickly and reliably we can build critical infrastructure such as large-scale data centers and next-generation power grids," Korea Development Bank Chairman Park Sang-jin said. "I hope this agreement becomes a model of cooperation that drives South Korea's digital transformation."


rim@heraldcorp.com