Samsung SDS Partners with KKR to Accelerate AI Growth

Samsung SDS, a leading provider of enterprise IT solutions and a member of Samsung Group, has entered into a strategic partnership with global investment firm KKR. This collaboration involves KKR investing 1.22 trillion won (approximately $820 million) through newly issued convertible bonds. The investment aims to bolster Samsung SDS's capabilities in artificial intelligence (AI) infrastructure and support its expansion as a full-stack AI solutions provider.

Issues 1.2 Trillion Won in Convertible BondsCNBCKKR and Samsung SDS Form Strategic Partnership to Drive Long-Term Value CreationSamsung SDS Surges 20% on 1.22 Trillion Won KKR Partnership for AI Push

The convertible bonds will be issued to Startech AI L.P., a fund managed by KKR, and are expected to close in the second quarter of 2026. Samsung SDS plans to utilize the proceeds to enhance its AI transformation (AX) business, which includes developing infrastructure, platforms, and solutions for AI applications. The company also aims to pursue mergers and acquisitions (M&A) and explore new business ventures, such as physical AI and stablecoins.

Issues 1.2 Trillion Won in Convertible BondsSamsung SDS Surges 20% on 1.22 Trillion Won KKR Partnership for AI PushCNBCKKR and Samsung SDS Form Strategic Partnership to Drive Long-Term Value Creation

Jun Hee Lee, President and CEO of Samsung SDS, emphasized the importance of this partnership in advancing the company's growth strategy. He stated that the collaboration will allow Samsung SDS to leverage KKR's expertise in global capital markets to explore various growth opportunities. The company is also focused on establishing a National AI Computing Center in Haenam, scheduled for completion in 2028, and an AI Data Center in Gumi, expected to be completed in 2029.

Issues 1.2 Trillion Won in Convertible BondsCNBCKKR and Samsung SDS Form Strategic Partnership to Drive Long-Term Value CreationSamsung SDS Surges 20% on 1.22 Trillion Won KKR Partnership for AI Push

Chung Ho Park, Partner and Head of Korea at KKR, expressed confidence in Samsung SDS's market leadership and growth potential, noting the increasing demand for digital transformation and AI solutions. He highlighted the strategic partnership as a means to create long-term value for all stakeholders involved.

KKR and Samsung SDS Form Strategic Partnership to Drive Long-Term Value CreationCNBCIssues 1.2 Trillion Won in Convertible Bonds

Following the announcement of the investment, shares of Samsung SDS surged by as much as 21.3%, closing 17.89% higher. This significant increase reflects market optimism regarding the company's enhanced capacity for AI investment and business development. Analysts suggest that the partnership signals Samsung SDS's aggressive approach to AI and its commitment to expanding its market presence.

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While the partnership has been largely viewed positively, some market observers caution that the future performance of Samsung SDS will depend on the effective execution of its investment strategies and the resultant business outcomes. The reliance on external funding and the need for successful integration of new ventures may pose challenges.

Samsung SDS Surges 20% on 1.22 Trillion Won KKR Partnership for AI Push

The strategic partnership between Samsung SDS and KKR marks a significant step in the company's efforts to enhance its AI capabilities and expand its market reach. With a focus on infrastructure development and new business opportunities, Samsung SDS aims to solidify its position as a leader in the rapidly evolving AI landscape.

Issues 1.2 Trillion Won in Convertible BondsCNBCKKR and Samsung SDS Form Strategic Partnership to Drive Long-Term Value Creation

• “Through this strategic collaboration, we will actively explore a wide range of growth opportunities, including M&A by leveraging KKR's expertise accumulated in global capital markets,” — Jun Hee Lee, President and CEO of Samsung SDS

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• “Chung Ho Park, Partner and Head of Korea at KKR, said, “This unique strategic partnership brings together Samsung SDS, part of one of Korea’s most established conglomerates, with KKR’s global experience in long-term value creation.” — Chung Ho Park, Partner and Head of Korea at KKR

KKR and Samsung SDS Form Strategic Partnership to Drive Long-Term Value Creation