Bae, Kim & Lee (BKL) and Simpson Thacher & Bartlett have advised on a KRW3.08 trillion (USD2.2 billion) investment in SK Horizon, a South Korean AI data centre infrastructure company, by KKR and the IMM Investment-Stonebridge consortium.
SK Horizon is a newly created entity formed after SK Telecom decided to split its wholly owned subsidiary SK Broadband into SK Broadband and a separate company, SK Horizon.
KKR said SK Horizon would expand its infrastructure to a total capacity of 318 megawatts. This covers eight existing data centres – Seocho, Bundang, Gasan, Centum, Yangju, Pangyo and Ilsan, which has two locations – as well as new AI data centres currently under construction, including facilities in Ulsan and Guro.
SK Horizon would also pursue a phased expansion of its submarine cable infrastructure, KKR added.
BKL advised KKR, with the team comprising partners Ho Kyung Chang and Jaeyong Jeong, and senior foreign attorney Daniel Joonwu Park.
Chang said the firm counselled KKR on the transaction structure, including the planned demerger and investment framework. The firm also provided advice on due diligence and the definitive agreements.
BKL further assisted with negotiating the memorandum of understanding, and preparing, submitting and obtaining the regulatory approvals required for the deal, including filings with the Korea Fair Trade Commission and the Ministry of Science and ICT. The firm also supported the closing of the transaction.
“BKL has taken the lead in conducting in-depth due diligence to gain a comprehensive understanding of the company’s businesses and, based on its findings, has led negotiations on the transaction agreements as well as the process of obtaining the necessary government approvals and making the required regulatory filings,” Chang told Asia Business Law Journal.
Simpson Thacher also advised KKR. The team included partners Ian Ho, co-head of the Asia offices and co-head of the Asia private equity practice, Anuj Shah and Étienne Renaudeau, registered foreign lawyer Hyunmin Youm and senior counsel Meredith Jones. Associates Paul Kim, Min Park, Dani Rabinowitz, James Carrabino and Max Toubiana also worked on the transaction.
KKR said Kim Seong-soo, CEO of SK Broadband, was expected to serve concurrently as CEO of SK Horizon. His appointment will be finalised via a resolution of the board of directors following the completion of SK Horizon’s establishment in early 2027.