KKR targets Korea’s AI supply chain after record $3bn investment
TOP STORY: KKR is looking to expand its investment activity in South Korea after deploying around $3bn in the country this year, with the private equity firm targeting opportunities created by the rapid expansion of artificial intelligence infrastructure, according to a report by Bloomberg.
KKR is intensifying its investment activities in South Korea following a record $3bn investment this year, as reported by Bloomberg. According to the firm, 2026 marks a landmark year for KKR's annual deployments in the country, based on disclosed transaction values and equity stakes. KKR anticipates that South Korea's prominent role in the global AI supply chain will yield further opportunities within data centers, energy, and other essential infrastructure, as well as within the technology sector.
Chung Ho Park, KKR's head of Korea, highlighted that Korean businesses are increasingly focusing on core operations and adopting a more proactive approach to capital allocation, thereby creating potential for collaboration between KKR and major corporate entities. As a key player in the global AI ecosystem, South Korea is home to semiconductor manufacturers Samsung Electronics and SK Hynix.
The surge in demand for computing capacity is driving investment requirements beyond semiconductors, encompassing data centers, electricity generation, and supporting infrastructure. Private equity investments in South Korea have surpassed $37bn as of early September, placing the market on the brink of its annual record of $41.4bn, set in 2021.
KKR has strategically positioned itself across several stages of this investment cycle. Earlier this year, the firm invested KRW1.22tn ($880m) in convertible bonds issued by Samsung SDS and collaborated with the tech company on mergers and acquisitions, capital allocation, and the expansion of its AI operations. Furthermore, KKR has invested in infrastructure supporting South Korea's AI growth, joining local investment firms to commit a combined KRW3.08tn to SK Telecom's data-center business.
Simultaneously, KKR is developing a renewable-energy platform with SK Group, thereby gaining exposure to the escalating demand for electricity from data centers and the infrastructure necessary to supply that power. KKR's approximately $3bn of investments in Korea this year would rank South Korea as one of the firm's top three largest Asia-Pacific markets by investment for 2026.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.