South Korea continues to ramp up efforts on sovereign AI, establishing a 1 trillion won AI infrastructure fund with a focus on investing in data centers and energy facilities.

South Korea’s Korea Post (under the Ministry of Science and ICT) and the Korea Development Bank (KDB) signed a business cooperation agreement today at KDB’s Yeouido headquarters in Seoul, agreeing to jointly establish a 1 trillion won "AI Infrastructure Fund" to invest in next-generation AI data centers, energy infrastructure, and other national future strategic industries. The two sides plan to jointly source and invest in high-quality AI infrastructure projects to further expand financial cooperation. Park In-hwan, head of Korea Post, stated: "In this era, stable securing of AI infrastructure such as data centers and power grids is becoming a key determinant of national competitiveness. As an institution managing the public’s valuable assets, we will continue expanding infrastructure investment in national future growth drivers, balancing stability and profitability." This marks the two entities’ first joint investment in roughly 20 years; they previously set up an infrastructure fund together in 2006, backing national projects including Ulsan National Institute of Science and Technology, Incheon International Airport Railroad, the New Bundang Line, and power plants. The partnership aligns with the South Korean government’s policy to invigorate productive finance, using policy funds to leverage private capital in core AI-era infrastructure sectors. Earlier, the South Korean government has already ramped up investment in AI and digital infrastructure via its "Won Internationalization Roadmap" and "Sovereign AI" initiative. The joint investment between Korea Post and KDB signals a further tilt of public funds toward this field.