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Samsung SDS draws $820 million from KKR for AI expansion

Published: 15 Apr. 2026, 15:53 Updated: 15 Apr. 2026, 19:46

Samsung SDS headquarters in Songpa District, southern Seoul [SAMSUNG SDS]

Samsung SDS, the IT service arm of the conglomerate, is accelerating its shift to an AI-centered business structure after securing an $820 million investment from global investment firm Kohlberg Kravis Roberts (KKR).

Samsung SDS said on Wednesday that its board approved the issuance of about $820 million in convertible bonds, which will be purchased by a fund managed by KKR.

A convertible bond is a hybrid security that pays interest, just like a regular bond, but also gives the holder the option to convert it into common stock shares.

The deal makes KKR more than a financial investor. The firm is also set to serve as a strategic advisory partner on mergers and acquisitions (M&A), capital allocation and global growth opportunities for the next six years.

For Samsung SDS, the investment secures new funding while also giving the company access to KKR’s global capital markets network and investment expertise.

Backed by KKR's investment and its existing 6.4 trillion won ($4.3 billion) in cash and cash-equivalent assets, Samsung SDS plans to expand investment in AI infrastructure and its AI transformation, or AX, initiatives. The company is also stepping up efforts to move away from its traditional businesses in system integration and logistics to reposition itself as an AI-based service provider.

Samsung SDS is also investing in domestic AI infrastructure projects, including the National AI Computing Center in Haenam County, South Jeolla, due to open in 2028, and an AI data center in Gumi, North Gyeongsang, which is scheduled to begin operations in March 2029. The company is also pursuing its Design-Build-Operate business, which integrates data center design, construction and operations.

KKR will make the investment primarily through its Asia Fund IV. The transaction is expected to close in the second quarter, pending standard conditions.

“Through this strategic collaboration, we will actively explore a wide range of growth opportunities, including M&A, by leveraging KKR’s expertise accumulated from global capital markets,” said Lee June-hee, president and CEO of Samsung SDS.

“We look forward to leveraging KKR’s global network, deep local experience and operational expertise to support Samsung SDS’s next phase of growth as hands-on, active investors,” Park Chung-ho, partner and head of Korea at KKR, said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]