Study: Kakao Ansan Data Center to Generate KRW 2.1T

SEOUL, South Korea — Kakao Corp.’s Ansan data center is projected to generate KRW 2.059 trillion (US$1.43 billion) in production inducement effects over 40 years of operations, according to an economic impact study released Thursday.

The study, conducted by two economics professors from Hanyang University ERICA, calculated KRW 76.3 billion (US$53.2 million) in direct benefits, KRW 908.4 billion (US$633 million) in value-added effects, and 8,941 employment positions, using cost-benefit and input-output analysis. 

Kakao published the results through its policy research channel.

The Ansan data center, located in Gyeonggi Province, was completed in 2023. It is Kakao’s first self-owned facility and is situated on a university campus.

According to the study, KRW 41.2 billion (US$28.7 million) in direct benefits are allocated to university partnerships and KRW 35.1 billion (US$24.5 million) to regional cooperation.

The university partnership allocation includes KRW 29.9 billion (US$20.8 million) for educational cooperation with Hanyang University ERICA, KRW 8.6 billion (US$6 million) for research collaboration, and KRW 2.7 billion (US$1.9 million) for Kakao Enterprise internship programs.

Regional cooperation figures comprise KRW 29 billion (US$20.2 million) for digital transformation support for local businesses, KRW 5.7 billion (US$4 million) for regional sponsorships, and KRW 400 million (US$279,000) for support programs.

Kakao Enterprise also offers local companies KRW 50 million (US$34,850) in cloud credits, as well as consulting and education services.

The study’s calculations include construction investment and operational costs.

A 2020 survey by the city of Ansan found that 93 percent of respondents viewed the data center’s construction positively, while 4.8 percent expressed negative opinions.

Jong-hwan Shin, Kakao’s CFO, said the company plans to continue its data center operations and regional cooperation.

Baek Dong-hyun, vice president of Hanyang University ERICA Campus, said the research examines collaborative efforts between the university and Kakao.

(US$1 = KRW 1,435)