MOU signed with Korea Data Center Council

36 overseas trade offices, 199 domestic members to cooperate

Investment guidance, corporate grievances to be addressed jointly

Government targets 550 trillion won in AI data center investment

Kim Tae-hyung (from left), head of KOTRA's Invest Korea, Lee Han-cheol, investment policy director at the Ministry of Trade, Industry and Resources, and Kang Jung-hyup, chairman of the Korea Data Center Council, pose for a photo after signing an MOU to attract foreign investment in the data center sector at Parnas Hotel in Seoul on Wednesday. [KOTRA]
Kim Tae-hyung (from left), head of KOTRA's Invest Korea, Lee Han-cheol, investment policy director at the Ministry of Trade, Industry and Resources, and Kang Jung-hyup, chairman of the Korea Data Center Council, pose for a photo after signing an MOU to attract foreign investment in the data center sector at Parnas Hotel in Seoul on Wednesday. [KOTRA]

The Korea Trade-Investment Promotion Agency is stepping up efforts to attract foreign investment in AI data centers, planning to work more closely with industry players to resolve key obstacles in data center development — including securing power supply, selecting sites and navigating permit procedures.

KOTRA announced Thursday that it signed a memorandum of understanding with the Korea Data Center Council at Parnas Hotel in Seoul on Wednesday to cooperate on attracting foreign investment in the data center sector.

Under the agreement, the two sides will jointly support the entire investment process — from identifying overseas investment demand and connecting investors with domestic companies, to guiding them through procedures and resolving difficulties that arise during project execution.

The partnership combines KOTRA's overseas investment attraction network with the council's industry expertise. KOTRA currently operates 36 dedicated investment promotion trade offices around the world, while the council counts 199 member companies, including data center operators and equipment and facilities firms.

As a first step, the two organizations will jointly produce a guide for overseas investors entering the domestic data center market. The guide will outline key procedures and relevant regulations covering site acquisition, power supply and permits, with the aim of reducing uncertainty in the investment process.

The two sides held a meeting with foreign-invested companies in the data center sector on Oct. 23 to hear about challenges on the ground. Companies at the session raised the need for support in securing stable power supplies and navigating complex permit procedures.

Reflecting that feedback, KOTRA plans to publish an investment guidebook timed to a related special law taking effect next year, and will work jointly with the council to resolve issues that emerge during project execution.

As the AI industry grows rapidly, investment in the data centers that underpin it is also expanding. JPMorgan has projected that about $5.5 trillion will be invested in AI data center infrastructure worldwide by 2030.

The South Korean government has also designated AI data centers as one of three mega-projects under its "Great Leap Forward" initiative, alongside semiconductors and physical AI, and is pushing to develop the related industry.

According to a government plan announced in June, private companies including SK Group, GS and Naver will invest about 550 trillion won ($410 billion), including through attracting outside investment, to build AI data centers with a combined capacity of 8.4 gigawatts. The government plans to support infrastructure such as power and water supply and to foster the broader industry ecosystem.

Regulatory support is also being expanded. A special act on the promotion of the AI data center industry, set to take effect March 10 next year, includes provisions to streamline permit procedures and grant special exemptions related to power grid impact assessments outside the greater Seoul metropolitan area.

"Power, sites and permits are critical conditions for attracting AI data center investment," said Kim Tae-hyung, head of KOTRA's Invest Korea. "We will do our best to maximize the effect of attracting foreign investment by combining the council's deep understanding of industry needs with KOTRA's investment attraction network and know-how."


kwater@heraldcorp.com