Koramco Initiates Development of Data Center Worth 480 Billion KRW

Development of Data Center in Gasan Digital Complex, Seoul
LF Participates as Major Investor... Synergy with Major Shareholders in Business

[Asia Economy Reporter Minji Lee] Coramco Asset Management announced on the 23rd that it will invest 480 billion KRW to develop a data center (IDC). This is the first time Coramco is directly developing a data center.

Coramco established ‘Case Square Data Center PFV’ on the 8th for this project and is currently in the final stages of securing the site and obtaining development-related permits. Construction is scheduled to begin in the first half of next year, aiming for full operation in the second half of 2024.

The data center Coramco plans to develop will be a ‘Tier III’ level data center with a total floor area of 43,200㎡ (approximately 13,000 pyeong) on a 6,200㎡ site within the Gasan Digital Complex in Seoul. It will be built on a ‘Massive’ scale. ‘Massive’ refers to the third largest scale among seven levels of data center classification based on the number of installed server racks, ranging from Mini (ultra-small) to Hyperscale.

The design, construction, and operation of the data center will be entrusted to KT, the largest data center operator in Korea. KT started its data center business in 1999 and currently operates 14 data centers nationwide. It is recognized as the top domestic expert in design and operational know-how.

A data center is an IT infrastructure facility that integrates and manages servers, network lines, and storage, providing these resources to users, and is also called a ‘server hotel.’ Recently, with the expansion of non-face-to-face online business, video conferencing, online shopping, and the acceleration of digital transformation, the demand for colocation services that enable seamless implementation and professional service has surged.

According to the ‘Korea Data Center Market’ published by the Korea Data Center Association, the data center market size exceeded 3 trillion KRW for the first time this year, and an average annual growth rate of about 10% is expected over the next five years. To meet colocation demand by 2023, an average of 12 new data centers must be constructed annually, but supply remains insufficient. Considering that major global companies are eyeing Korea as an Asian data center hub, it is highly attractive as an investment destination.

The ‘Case Square Data Center PFV,’ the developer and operator of the data center, is scheduled to operate for a total of five years, including the development period. Major investors include LF, Coramco Asset Management, and Coramco Asset Trust. Coramco, which became a subsidiary of LF in 2018, collaborated with LF last year on a project to rebuild a clothing warehouse in Anyang, Gyeonggi Province, into a temperature-controlled logistics center. Coramco plans to actively seek synergies with its major shareholder going forward.

Park Hyung-seok, CEO of Coramco Asset Management, said, “The data center development project is not only a proactive investment based on the market’s demand and supply asymmetry but also meaningful in supporting infrastructure expansion for the growth of the domestic IT industry. Coramco will invest in assets that can grow significantly in the long term, rather than assets that generate immediate profits.”

This content was produced with the assistance of AI translation services.