KB Kookmin to lead record W10.7tr loan for Naver AI project

KB Kookmin Bank has secured a mandate to lead a 10.7 trillion won ($8 billion) syndicated loan for a Brookfield-backed AI computing infrastructure project that will supply Naver Cloud, in what the bank called South Korea's first GPU financing and largest-ever syndicated loan arrangement.

The loan is part of a project valued at about 13 trillion won. Brookfield will establish a special purpose company, tentatively named Asset Co., to acquire GPUs and other AI computing assets. Asset Co. will supply computing capacity to Naver Cloud, Naver's cloud computing arm, under a long-term agreement. KB Kookmin will oversee the financing, including structuring the loan and negotiating key terms, the bank said Sunday.

KB Kookmin said other domestic banks and securities firms were participating, but gave no further details on the lender group or loan terms. Earlier media reports said Korea Development Bank, Shinhan, Woori and Hana banks, as well as NH Investment & Securities, had considered joining the financing. Their final commitments have not been disclosed.

In July, Naver, Nvidia and Brookfield, a Canadian alternative asset manager, announced plans for a $10 billion AI factory project. Brookfield agreed to provide up to $9 billion for the infrastructure, while Nvidia planned a $1 billion strategic investment in Naver.

Naver signed the $9 billion infrastructure agreement with Brookfield on Tuesday, fulfilling a prerequisite for Nvidia's investment. Once completed, the investment would make Nvidia Naver's third-largest shareholder.

Naver's Tuesday filing set tentative targets for the AI factory, with capacity planned to reach 55 megawatts in the first half of 2027, 100 megawatts by year-end and 200 megawatts in 2028. The project will center on GAK Sejong, Naver's hyperscale data center. The expanded facility is expected to house about 100,000 Nvidia GPUs, the company has said.

Asset Co. will own the GPUs and data center infrastructure, while Naver Cloud will operate the AI factory and sell computing services to customers. Naver said usage fees would be linked to revenue from the AI factory business to ease the upfront investment burden.

Naver also guaranteed Naver Cloud’s payment obligations under the project contracts, with the nominal guarantee capped at 18.74 trillion won assuming full use of the $9 billion investment limit. The guarantee does not cover the syndicated loan itself.

Lenders are expected to weigh the long-term service fees and Naver Cloud's ability to make those payments, as the resale value of GPUs is difficult to predict, according to earlier media reports. The long-term agreement provides a contracted revenue stream for the infrastructure business.

"By arranging this financing, we have opened up a new area of finance with South Korea's first GPU financing," a KB Kookmin official said. "We will continue to expand financial support for future growth industries and contribute to strengthening the competitiveness of domestic industries."