Naver, a South Korean internet conglomerate, is developing a large-scale AI data center located in Sejong City named “Gak Sejong”, with a 400 billion won (US$ 270 million) loan approved by the country’s Financial Services Commission (FSC). The facility will serve as the primary hub for Naver’s AI infrastructure and its AI model, HyperCLOVA X.
The loan will fund the expansion of Naver’s data center in Sejong, aimed at advancing its large language model (LLM), scaling AI integration in its search services, and deploying the latest graphics processing unit (GPU) servers.
According to ChosunBiz, the decision to fund Naver’s AI data center was made at a fund management deliberation committee meeting. The company has received government funding to expand its data center operations after phase one of the construction was completed. The loan was granted at an interest rate in the 3 percent range at South Korea’s Public Growth Fund management committee on April 15, 2026.
The publication quoted the FSC as saying, “Korean corporations have had a high level of dependence on global big tech corporations in developing AI models due to a lack of AI infrastructure facilities,” and added, “To help the domestic AI industry reduce its dependence on global big tech and secure its own AI sovereignty, we decided to provide funding for domestic corporations’ large-scale AI data center construction projects.”
Separately, the FSC also approved funding for SEMCNS, a semiconductor test component manufacturer based in North Chungcheong. The company produces ceramic space transformers used in semiconductor test equipment.
Fortune Business Insights’s recent market forecast South Korea’s artificial intelligence market was valued at US$ 5.47 billion in 2024, according to Fortune Business Insights. It is projected to reach US$ 7.17 billion in 2025 and grow to US$ 53.87 billion by 2032, representing a compound annual growth rate (CAGR) of 33.40 percent over the forecast period.