Samsung SDS Forms Strategic Partnership with KKR... Issues 1.2 Trillion Won in Convertible Bonds

"Pursuing New Businesses Such as Physical AI and Stablecoins, Along With M&A"

Samsung SDS is pursuing a strategic partnership with global investment firm KKR to secure future growth engines. Samsung SDS plans to use the funds secured through the issuance of 1.2 trillion won worth of convertible bonds to expand its business, including building artificial intelligence (AI) infrastructure, while KKR will provide advisory services in areas such as mergers and acquisitions (M&A) and capital utilization.

On April 15, Samsung SDS announced in a public disclosure that it had resolved to issue convertible bonds (CB) worth 1.2 trillion won (820 million dollars) for strategic cooperation with KKR.

Samsung SDS Lettermark. Samsung SDS

The companies explained that this collaboration aims to establish an AI full stack—including infrastructure, platforms, and solutions—while also strengthening the foundation for growth by securing investment capital.

Based on the new funds (1.2 trillion won in KKR-managed fund capital) secured through the partnership with KKR, as well as its existing cash and cash equivalents of 6.4 trillion won, Samsung SDS plans to expand investments in AI infrastructure and enhance its competitiveness in the AI transformation (AX) business.

Furthermore, to secure future growth engines, the company will pursue global business footholds, new businesses such as physical AI and stablecoins, and M&A. In this process, Samsung SDS intends to leverage KKR’s global network and M&A expertise.

KKR plans to provide advisory services to Samsung SDS for six years in areas such as M&A, capital utilization, and identifying global growth opportunities.

Samsung SDS is accelerating the expansion of its domestic AI infrastructure business, such as by pursuing the establishment of a National AI Computing Center in Haenam (scheduled for completion in 2028) and an AI Data Center in Gumi (expected to be completed in 2029). In addition, the company is launching a new data center DBO (Design, Build, Operate) business.

Junhee Lee, CEO of Samsung SDS, emphasized, "Through this strategic partnership, we will actively explore various growth opportunities, including M&A, by leveraging KKR’s capabilities accumulated in the global capital markets. Through the collaboration between the two companies, we will continuously enhance Samsung SDS’s corporate value and further strengthen our foundation for global growth."

Jung Ho Park, Managing Director of KKR Korea, stated, "We look forward to utilizing KKR’s global network, deep local experience, and operational expertise to support Samsung SDS’s next phase of growth as a true investor and to jointly lead the creation of long-term value for all shareholders and stakeholders."

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