SK Group affiliates to invest $1.9B in local infra project by 2025

KT. Photo: ZDNet. Sketched by the Pan Pacific Agency.

SEOUL, Nov 24, 2020, Korea Bizwire. A consortium of two SK Group affiliates will invest 2.1 trillion won (US$1.9 billion) in data centers and a startup cluster in South Korea’s southwest industrial complex by 2025, the transport ministry said Tuesday, Korea Bizwire reported.

The consortium of SK E&S Co. and SK broadband Co. will invest 2 trillion won to build eight data centers in the Saemangeum industrial complex by 2025, the Ministry of Land, Infrastructure and Transport said in a statement.

It said the companies aim to double the number of data centers by 2029, using renewable energy to be generated in Saemangeum, a reclaimed area located about 280 kilometers southwest of Seoul.

“They are targeting to attract at least 60 domestic and overseas information-technology firms and startups to the centers,” a ministry official said.

South Korea has been seeking to attract foreign investment and to transform Saemangeum — more than four times the size of Manhattan — into an eco-friendly waterfront city with high-end industrial, tourism and agricultural facilities, as well as science and research institutes.

The consortium will also inject 100 billion won to build a startup cluster by 2023, with an aim to attract 300 companies that have advanced technologies but need capital to initiate their business, the statement said.

The SK companies plan to operate the startup cluster for 20 years after completion, it said.

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