Woori Financial Group Backs 600 Billion Won AI Data Center in Pohang

Woori Financial Group is marshaling its subsidiaries to provide financial backing for the construction of a 600 billion won artificial intelligence data center in Pohang, a project that underscores the growing role of financial institutions in funding critical digital infrastructure amid South Korea's accelerating AI ambitions.

Woori Financial announced on September 23 that it has signed a project financing agreement for the "Pohang AI Factory Data Center," to be built in the Gwangmyeong General Industrial Complex in Nam-gu, Pohang. The facility will have a power capacity of 40 megawatts and an IT load of 32 megawatts, positioning it as a significant addition to the country's AI computing infrastructure.

Of the total project cost of 600 billion won, 150 billion won will be funded through equity, while 450 billion won will come from project financing loans. The project is targeting completion by the end of 2027. The equity-loan structure reflects a typical project financing model for large-scale infrastructure, with the lending portion accounting for 75 percent of total costs.

The project draws participation from across Woori Financial Group, including Woori Bank, Woori Investment & Securities, Woori Asset Management, Woori Asset Trust, and Woori Financial Capital. Woori Bank will serve as a joint financial arranger alongside KB Kookmin Bank and will also act as the agent bank. Woori Asset Management will handle initial project discovery and asset management company tasks, while Woori Investment & Securities will provide financial advisory services in collaboration with Hyundai Motor Securities. Woori Asset Trust will manage collateral trust and fund management duties, and Woori Financial Capital will participate in project financing.

On the operational side, NHN Cloud has committed to pre-leasing 16 megawatts, which accounts for half of the total IT load, and will operate the data center after its completion. Hyundai Engineering & Construction, the contractor, will provide a completion guarantee, adding a layer of risk mitigation for lenders and investors.

Lee Dong-hyuk, head of the Infrastructure Finance Department at Woori Bank, framed the deal as part of a broader strategic push. "This is an example of how we are leveraging the group's comprehensive financial capabilities to support the construction of key infrastructure in the AI era," he said. "We will continue to expand productive finance to ensure that funds flow into advanced strategic industries and the local economy."

The project highlights a broader trend in South Korea and across Asia, where financial groups are increasingly stepping in to structure and underwrite large-scale AI data center developments. As demand for AI compute capacity surges, the ability to assemble complex financing packages — combining equity, syndicated loans, and pre-leasing commitments — is becoming a competitive differentiator for financial institutions. The Pohang facility's 32-megawatt IT load also signals the scale of regional AI infrastructure buildout, which is no longer confined to the Seoul metropolitan area but is spreading to industrial hubs like Pohang. For Woori Financial Group, the deal represents an opportunity to deepen its presence in the infrastructure finance segment while supporting the government's push to cultivate advanced strategic industries and stimulate local economic activity.