Woori Financial Group will provide financial support for a Pohang artificial intelligence (AI) data centre development project worth a total of 600 billion won by pooling the capabilities of its affiliates including banking, securities, asset management, trust and capital units.

Woori Financial said on Tuesday it signed a project financing (PF) agreement for the development of the 'Pohang AI Factory Data Centre' to be built at the Gwangmyeong General Industrial Complex in Ocheon-eup, Nam-gu, Pohang, North Gyeongsang Province.

The project will build an AI data centre with 40 megawatts of power capacity and 32 megawatts of IT load, with completion targeted for the end of 2027. The 600 billion won total project cost will be financed through 150 billion won in equity and 450 billion won in PF loans.

Woori Bank will participate as a joint lead arranger with KB Kookmin Bank and will also serve as agent bank. Woori Asset Management will oversee project progress, key contracts and the execution of funds through early project sourcing and its role as an asset management company (AMC).

Woori Investment Securities will serve as a joint financial adviser with Hyundai Motor Securities, while Woori Asset Trust will carry out collateral trust and cash management agency work. Woori Financial Capital will also take part in PF financing.

Pre-leasing and a responsible completion commitment have also been arranged to improve project stability. NHN Cloud provided a pre-lease commitment for 16 megawatts, half of the total IT load, and is expected to operate the data centre after completion. Hyundai Engineering will handle construction and responsible completion.

Woori Financial plans to respond to demand for AI computing and cloud services through the project and support the digital transformation of regional manufacturing and the fostering of new industries.

Lee Dong-hyuk (이동혁), a team leader at Woori Bank's infrastructure finance division, said the project was an example of supporting AI infrastructure development by bringing together the group's comprehensive financial capabilities, including banking, securities, asset management, capital and trust.