The Korean government will provide 400 billion won ($278 million) in low-interest loans through the National Growth Fund to support Naver's artificial intelligence data center expansion and graphics processing unit server deployment project.
The Financial Services Commission held a National Growth Fund management committee meeting on January 15 and approved the investment plan. The Advanced Strategic Industry Fund will provide 340 billion won and Korea Development Bank will contribute 60 billion won, both at interest rates in the 3 percent range.
Naver (035420.KS) is currently constructing "Gak Sejong," a large-scale AI data center in Sejong City. Gak Sejong serves as the core infrastructure functioning as the brain of Naver's AI ecosystem. It supports Naver's proprietary AI system HyperCLOVA X as well as various search, shopping, and cloud services. While the first phase of construction has been completed and partial operations are underway, Naver is investing 922.1 billion won to expand the data center and deploy the latest GPU servers to meet rapidly growing AI demand.
The FSC determined that investing in data centers, which are critical facilities in the AI value chain, will reduce dependence on foreign big tech companies and protect domestic data. "We decided to provide funding for domestic companies' large-scale AI data center construction projects to secure our own AI sovereignty," an FSC official said. "Developing independent AI models based on domestic AI infrastructure is a core asset that protects our nation's economy and security."
Naver plans to enhance personalized services using AI to improve convenience for all citizens.
The fund management committee also approved a 200 billion won loan for SEM C&S, a manufacturer of semiconductor test process components. Based in North Chungcheong Province, SEM C&S produces ceramic Space Transformers used in test equipment within the semiconductor industry ecosystem. The FSC announced the previous day that it would simplify approval procedures for regional small and medium-sized enterprises applying for funding support, and SEM C&S received expedited loan approval under this streamlined process.
