Kiwoom Securities Completes Full Subscription of 380 Billion KRW PF Loan Refinancing for 'K-Square Data Center'

Kiwoom Securities announced on the 24th that it has participated in the full underwriting of a 380 billion KRW project financing (PF) loan refinancing for the ‘K-Square Data Center’ (hereinafter referred to as the data center), which Koramco Asset Management is promoting in Gasan-dong, Geumcheon-gu, Seoul.

The data center is a facility in which Koramco Asset Management established the ‘K-Square Data Center PFV’ with investments from LF and institutional investors, investing 145 billion KRW of equity capital. In February last year, it procured a PF loan of 345 billion KRW from a lending consortium including Korea Investment & Securities. The completion is targeted for June this year.

After a multifaceted assessment of the project’s viability, Kiwoom Securities participated in the refinancing for the repayment of the PF loan and conversion to a secured loan through full underwriting.

The data center is located in Gasan-dong, Geumcheon-gu, a major data center cluster in Seoul. It is recognized as a prime asset, having received the world’s top title with a perfect score of 100 in the ‘GRESB’ evaluation, the world’s most prestigious real estate ESG assessment, marking the first time for a domestic asset last year.

Due to the recent acceleration of companies’ cloud transitions and the explosive increase in cloud traffic, the maximum operating rate of major domestic metropolitan area data centers (IDCs) is at 80-100%.

Since last year, Kiwoom Securities has executed PF loans for prime deals centered in the metropolitan area, including the 5th complex regional housing association project in Singil-dong, Seoul, the Songdo international complex development project, and the redevelopment of the former KT site in Mok-dong. This is the first time it has provided a PF loan for a data center.

Supported by this, Kiwoom Securities’ related revenue last year was 158.9 billion KRW, a significant increase compared to 59.3 billion KRW in 2023.

A Kiwoom Securities official stated, “We will continue active investments in prime deals through careful selection this year as well,” adding, “Risk management through sell-downs will also be conducted in parallel.”