Samsung SDS will cooperate with global investment firm KKR to secure future growth drivers.

Samsung SDS on Tuesday held a board meeting and approved the issuance of 1.2 trillion won ($820 million) in convertible bonds to pursue strategic cooperation with KKR.

The company said the cooperation aims to strengthen leadership as an AI specialist with an AI full stack spanning infrastructure, platforms and solutions in an IT services market being reshaped around AI. It also aims to strengthen the foundation for global growth by securing global investment funds.

Samsung SDS plans to continue expanding investment in AI infrastructure and to strengthen competitiveness in its AX business, based on the newly secured funds of 1.2 trillion won from KKR-managed funds and its existing 6.4 trillion won in cash and cash equivalents.

To secure future growth drivers, it also plans to actively pursue footholds for global expansion, new businesses such as physical AI and stablecoins, and mergers and acquisitions. It said it expects to actively leverage KKR's global network and M&A expertise.

KKR plans to serve as a long-term adviser to Samsung SDS for 6 years in areas including M&A, capital deployment and identifying global growth opportunities.

Samsung SDS is accelerating the expansion of its domestic AI infrastructure business, including plans to build a National AI Computing Center in Haenam with a completion target of 2028 and an AI data center in Gumi scheduled for completion in 2029. It is also newly pursuing a data center DBO (Design, Build, Operate) business. It also signed cooperation with OpenAI at the end of last year to target South Korea's AI transformation (AX) market.

Jung-ho Park (박정호), head of KKR Korea, said, "As demand for digital transformation and AI solutions increases, I am confident Samsung SDS will continue its market leadership and high growth potential as a key company driving the development of South Korea's digital capabilities and infrastructure." He added, "By actively leveraging KKR's global network, deep local experience and operational expertise, we expect to support Samsung SDS' next stage of growth as a hands-on investor and to jointly drive long-term value creation for all shareholders and stakeholders."

Jun-hee Lee (이준희), CEO of Samsung SDS, said, "With this strategic cooperation, we will actively review various growth opportunities including M&A by leveraging KKR capabilities accumulated in global capital markets." He added, "Through cooperation between the two companies, we will continuously enhance Samsung SDS' corporate value and strengthen the foundation for global growth."