Skip to content

KT Cloud secures a $453 million investment to accelerate growth.

Photo by Rafael Garcin / Unsplash

KT Cloud has announced the most significant investment in its industry to date, solidifying its dominance in the digital transformation (DX) market.

The move comes in the form of a KRW 600 billion (approximately $453 million) capital increase funded by IMM Credit and Solution, a fast-growing private credit fund manager.

The decision underscores the growing market recognition of KT Cloud's enterprise value, which is expected to create a virtuous cycle of positive impact on the enterprise value of its parent company, KT Group.

As part of the transaction, 2,656,808 shares were issued at a board meeting held on May 11.

IMM Credit and Solution, which manages approximately KRW 1.2 trillion assets, was attracted by the stable revenue generation and growth potential of kt cloud's IDC and cloud businesses.

With 2022 revenue exceeding KRW 550 billion, up 22% year-on-year, and operating profit up 33%, kt cloud has consistently demonstrated strong performance.

KT Cloud aims to diversify its IDC strategic portfolio, explore global markets, and streamline data center operations through technological innovation.

The company also plans to secure over 100MW of data center capacity over three to five years, including new construction, master leases, and data center acquisitions.

The company's ambitions extend beyond South Korea, with plans to develop new IDCs in Southeast Asia.

Technological innovation will also play a key role, with plans to improve the efficiency of IDC operations by introducing integrated control and AI remote systems.

In addition, KT Cloud is evolving into a "full-stack AI cloud" provider.

The company targets the public, financial, and enterprise sectors and aims to pre-empt the DaaS/DR/hybrid strategies market.

Collaborations with partners such as Rebellion and MORE will facilitate the development of AI infrastructure services (HAC) and the development and application of a Neural Processing Unit (NPU).