KKR has committed 1.22 trillion won (about $820 million) to newly issued convertible bonds from Samsung SDS, the South Korean IT solutions and logistics provider. The investment is part of a broader partnership that will see KKR advise Samsung SDS on mergers and acquisitions, capital allocation, artificial intelligence offerings and global expansion, while the proceeds will be used to accelerate the company’s AI infrastructure and strengthen its position as a full‑stack AI solutions provider.
The convertible bonds mature in April 2032 and carry a fixed conversion price of 180,000 won per share, an 18 % premium to the prior day’s closing price. KKR accepted the terms with no refixing clause and a six‑year lock‑up period, giving the firm a defensive entry point that also allows upside participation if Samsung SDS’s equity value rises.
Samsung SDS reported total cash and cash‑equivalent assets of 6.4 trillion won ($4.3 billion) and a total investment capacity of 7.6 trillion won after the KKR investment. The company’s revenue for the trailing twelve months ending 2025 was 13.93 trillion won, and it employs roughly 26,000 people.
Following the announcement, Samsung SDS shares surged more than 20 % intraday, reaching a 21.3 % high and closing at 178,600 won, the sharpest daily gain in ten months. KKR’s stock rose about 5 %, and Samsung Electronics shares climbed nearly 4 % in South Korea on the same day.
"Against a backdrop of increasing demand for digital transformation and AI solutions, we have strong conviction in Samsung SDS' market leadership and growth potential by playing a critical role in advancing Korea's digital capabilities and infrastructure," said Chung Ho Park, Partner and Head of Korea at KKR. "This unique strategic partnership brings together Samsung SDS, part of one of Korea's most established conglomerates, with KKR's global experience in long‑term value creation." Jun Hee Lee, President and CEO of Samsung SDS, added, "Through this strategic collaboration, we will actively explore a wide range of growth opportunities, including M&A, by leveraging KKR's expertise accumulated in global capital markets. We are delighted to welcome KKR as a strategic investor as we continue to advance our growth strategy. We will continuously enhance corporate value by actively exploring diverse growth opportunities and further strengthen our global growth foundation."
The partnership positions Samsung SDS to accelerate its AI infrastructure projects, including the National AI Computing Center in Haenam (expected completion 2028) and an AI data center in Gumi (operations starting March 2029). KKR’s advisory role is expected to unlock value through strategic M&A and global expansion, addressing a historical gap in Samsung SDS’s capital deployment strategy and potentially boosting its valuation in the high‑growth AI market.
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