BlackRock picks Korea as Asia AI hub…"Will soon make pilot investments worth trillions of won"

AI·renewable energy infrastructure cooperation

Larry Fink, who has long emphasized ESG investing

Shared understanding with a government working on eco-friendliness

Both sides discuss establishing a data center in Korea

President Lee Jae-myung met with BlackRock Chairman Larry Fink, head of the world's largest asset manager, on the 22nd (local time) and agreed to cooperate on building Korea's artificial intelligence (AI) and renewable energy infrastructure.

Meeting the president in New York that day, Fink signaled his intention to invest in Korea, saying, "We will actively cooperate by connecting global capital so that Korea can become the 'AI capital of Asia.'" The president responded, "Let's turn the cooperative relationship into tangible results."

The Korean government and BlackRock signed a memorandum of understanding (MOU) focused on cooperation in AI and renewable energy infrastructure. The two sides agreed to form a separate task force (TF) to identify specific investment targets and advance discussions so that large-scale investments can be made.

Fink is regarded as a prominent Wall Street figure who turned ESG (environment, social, governance) into a global investment trend. Analysts view the signing of an MOU centered on cooperation in AI and renewable energy infrastructure as the result of aligned interests between the government and BlackRock.

The government is promoting the attraction of large-scale AI data centers and the construction of an energy superhighway and other renewable energy infrastructure. This requires not only public funds but also massive market capital investment. As BlackRock expands related investments, it is expected to act as a financial investor (FI) in government projects. Kim Woo-chang, Presidential Office national AI policy secretary, said, "The participation of FIs is desperately needed in building AI and renewable energy ecosystems, which are at an early stage globally." Ruling party officials predicted that if BlackRock's domestic AI and renewable energy investments materialize, the scale could reach trillions of won.

The two sides agreed to seek an integrated approach to data centers and renewable energy infrastructure to meet the surging AI demand in the Asia-Pacific region as well as domestically. Fink emphasized to the president that "AI and the decarbonization transition should proceed together." He also said they would discuss placing large-scale AI data centers (hyperscale) powered by renewable energy that BlackRock invests in within Korea.

In the process, the possibility of Korea joining the BlackRock-led "Global AI Infrastructure Partnership (AIP)" was discussed. AIP was formed by BlackRock with Microsoft (MS), NVIDIA, xAI, and others. Global Infrastructure Partners (GIP), which BlackRock acquired last year for about $12.5 billion, is also participating.

Ha Jung-woo, the Presidential Office's AI Future Planning Chief, said, "We agreed to jointly prepare with BlackRock the direction of the large-scale investments needed over five years for AI and renewable energy transition in the Asia-Pacific region." Cha Ji-ho, lawmaker of the Democratic Party (Chair of the AI Future Strategy Special Committee), who attended the meeting, said, "We expect at least pilot investments worth trillions of won to occur in the near future."

New York=Reporter Han Jae-young jyhan@hankyung.com