The Ansan Seonggok-dong KAAM Square Data Center development project (80MW power capacity), for which LK Partners served as legal advisor, successfully secured its main Project Financing (PF) loan in December 2024. The total committed amount under the main PF reached KRW 834 billion. When combined with the KRW 250 billion in equity capital already paid in October 2024, the project secured a total of KRW 1.084 trillion in initial project funding. This achievement is regarded as particularly notable in the domestic data center development market, given both the scale and structural complexity of the project.

Main PF Structure and Size

The PF loan commitment totals KRW 834 billion, structured as follows: Tranche A (Senior): KRW 710 billion Tranche B (Mezzanine): KRW 70 billion Tranche C (Junior): KRW 54 billion Samsung Securities acted as the lead arranger, overseeing the overall financing. In particular, credit enhancement was provided through the issuance of approximately KRW 680 billion in ABSTB (Asset-Backed Short-Term Bonds), including loan receivable purchases, private bond underwriting, and liquidity support obligations. For the execution of this PF, a special purpose company (SPC), KAAM Square First SPC, was established. From December 2024 through June 2028, the SPC plans to issue ABSTB in a total of 21 tranches.

Project Overview

Location: 670-4, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea Gross Floor Area: 76,459㎡ (approximately 23,128 pyeong) Building Structure: 5 basement levels to 7 above-ground floors Main Contractor: Hyundai Engineering & Construction With the successful completion of the main PF, the project is expected to proceed to groundbreaking, supported by a stable financial foundation for full-scale development.

LK Partners’ Role

LK Partners provided comprehensive and meticulous legal advisory services throughout the entire lifecycle of the project, from its initial stages through financial close, including: Establishment of the PF vehicle (PFV) and structuring of real estate transactions within the industrial complex Securing power supply capacity and negotiating usage agreements with end-users Advisory on bridge loans and land ownership acquisition Support for advanced structuring agency agreements, building permits, construction, design, and supervision contracts Legal advisory on the main PF loan agreements and trust arrangements

In particular, LK Partners’ expertise played a critical role in structuring the project to address the complex stakeholder relationships and regulatory requirements unique to data center developments.