$8 Billion Syndicated Loan to Finance Naver’s AI Factory in South Korea
Key Facts
KB Kookmin Bank has been mandated to arrange a 10.7 trillion won syndicated loan, equivalent to $8 billion, for an AI computing infrastructure project backed by Brookfield that will supply computing capacity to Naver Cloud, according to the Korea Herald on November 1, 2026. The loan is part of a project estimated to be worth about 13 trillion won, putting it below the project’s announced total cost. A bank official described the arrangement as "opening a new field of financing with South Korea’s first financing for GPU units." That puts GPU units and related assets at the center of a major financing deal, rather than limiting financing to buildings. The bank said it would continue to expand its support for future industries.
Under the planned structure, Brookfield will establish a special purpose company provisionally named Asset Co. to acquire GPU units and other computing assets, then supply computing capacity to Naver Cloud under a long-term agreement, according to the Korea Herald. The loan will finance the purchase of GPU units and related equipment and the construction of infrastructure, the newspaper reported. This arrangement differs from financing limited to a real estate asset, since the underlying assets here are computing equipment and the capacity that will be made available to the customer. Naver’s plan says operations will begin at 55 megawatts in the first half of 2027, with capacity then reaching 100 megawatts by the end of that year. The plan targets raising it to 200 megawatts in 2028, with a phased expansion into overseas markets and the GAK Sejong center serving as the hub.
The financing’s viability is tied to revenue from computing capacity usage: Naver says usage fees will be linked to business revenue to ease the burden of the initial investment. Under its agreement with Brookfield, investment in infrastructure, including GPU units and data centers, could reach $9 billion. Naver has also guaranteed Naver Cloud’s obligations related to usage fees for up to 8 years. The company said the guarantee does not in itself create actual cash flows or cost burdens for it, while the Korea Herald put its nominal cap at 18.74 trillion won, assuming full use of the $9 billion investment limit. That cap does not include the syndicated loan itself, according to the newspaper; the resale value of GPU units remains a source of uncertainty for lenders.
The loan is part of a broader investment structure Naver announced in July, when it estimated the AI factory project at about $10 billion. The company said at the time that Brookfield would provide up to $9 billion as its exclusive equity partner, Nvidia would invest $1 billion, and Naver would finance the remainder. These amounts form an investment framework for the project, while the 10.7 trillion won syndicated loan remains a separate financing instrument within the plan. The infrastructure arrangement also links the project to a planned strategic investment by Nvidia in Naver. Naver said it would complete the capital increase by allocating new shares to Nvidia.
Naver has not yet published specific details of the capital increase through the share allocation and said further information would be released at a later date. KB Kookmin has also not disclosed details of the lender group or loan terms, according to the Korea Herald. The final commitments of institutions that earlier reports said might participate have not been announced, the newspaper reported. This undisclosed information leaves each lender’s participation and the detailed financing terms open until further disclosures. The first operational milestone is the start of 55 megawatts of capacity during the first half of 2027, followed by a targeted increase to 100 megawatts by year-end and then to 200 megawatts in 2028.