Woori Financial Group to provide project financing for Pohang AI data center

Woori Financial Group announced Wednesday that it will provide project financing for the Pohang AI Factory data center development project in Pohang, North Gyeongsang Province.

The project is a large-scale digital infrastructure initiative with a total project cost of 600 billion won ($433 million), aimed at building an AI data center with a power receiving capacity of 40 megawatts and an IT load of 32 megawatts.

The total cost will be funded through 150 billion won in equity and 450 billion won in project financing loans, with completion targeted for the end of 2027.

Woori Financial Group has consolidated its group-wide capabilities across the entire project and is collaborating with external financial institutions to establish a stable foundation for the large-scale AI infrastructure initiative.

Woori Bank will serve as co-arranger alongside KB Kookmin Bank and act as the agent bank, while Woori Asset Management will handle early-stage project development and asset management company duties, overseeing project progress, key contracts and fund disbursements. Woori Investment Securities will provide joint financial advisory services with Hyundai Motor Securities.

Pohang has drawn attention as a key hub for AI data centers outside the Greater Seoul area, backed by abundant power infrastructure and room for expansion. The data center is expected to meet demand for high-performance GPU-based AI computing and cloud services, while also contributing to the digital transformation of local manufacturing and the development of emerging industries in the region.

Lee Dong-hyuk, a team leader at Woori Bank's infrastructure finance division, said the project "is a case where we brought together the group's comprehensive financial capabilities — spanning banking, securities, asset management, capital and trust — to support the construction of core infrastructure for the AI era." He added that the group would "continue to expand productive finance so that capital flows into advanced strategic industries and regional economies, based on collaboration among group affiliates."

Through August, Woori Financial Group supplied a total of 25.3 trillion won in productive finance — including 1.5 trillion won in investments and 23.8 trillion won in loans — surpassing its target for the year.