Over the next five years, 100 trillion won will be invested in private investment projects such as data centers and power networks... profitability design is key
The South Korean government plans to uncover 100 trillion won in private investment projects over the next five years, focusing on sectors like AI data centers and power networks, along with the introduction of public participation funds.
The South Korean government has announced a significant initiative to uncover 100 trillion won in private investment projects aimed at enhancing infrastructure related to artificial intelligence data centers and power networks over the next five years. This initiative was discussed during the second meeting of the Private Investment Business Review Committee for 2026, where the Minister of Planning and Budget emphasized the importance of profitability design in these ventures. The introduction of a public investment fund is expected to allow individual citizens to participate in these private ventures, thus democratizing investment opportunities.
The government plans to create a legal basis for private sector involvement in AI data centers by developing a business model and conducting feasibility studies, aiming to launch these projects next year. Additionally, a significant regulatory change will occur with the revision of the Special Law on National Power Grid Expansion to attract private capital to address the mounting debts faced by Korea Electric Power Corporation (KEPCO). The government clarified that while private firms will construct power networks, KEPCO will retain rights over management and ownership, reflecting a structure designed to ensure both private investment and state control.
To stimulate regional private investment projects, the government will introduce various measures, including incentives for the initial proposal investors and an increase in evaluation weights for regional development in eligibility assessments. New competitive bidding processes and advantages for local businesses will also be implemented. Through this comprehensive strategy, the government aims to double the scale of new private investment projects from 50 trillion won in the past five years to 100 trillion won in the upcoming five years, significantly boosting the domestic economy and infrastructure capabilities.