President Lee Jae-myung speaks with SK Group Chairman Chey Tae-won during a global AI partnership roundtable held at the Ulsan Exhibition and Convention Center on (Image from Presidential Press Corps)
SEOUL, June 23 (Korea Bizwire) — South Korea’s SK Group is embarking on what it calls its “fourth quantum leap,” leveraging artificial intelligence to transform its industrial footprint through a landmark AI data center in Ulsan—marking a new chapter in the conglomerate’s seven-decade history of strategic pivots.
The company, which began in textiles in 1953 before expanding into petrochemicals (1980), telecommunications (1994), and semiconductors (2012), now sees AI as the engine for its next era of growth.
Chairman Chey Tae-won emphasized during a recent strategy meeting that the group’s long-term survival hinges on “how well we adapt to AI,” urging its application across IT, energy, biopharma, and manufacturing sectors.
At the core of this AI vision is a newly announced partnership with Amazon Web Services (AWS) and the city of Ulsan to construct South Korea’s first and largest hyperscale AI data center.
Scheduled to begin full service in 2027, the facility will anchor SK’s national AI infrastructure, enable large-scale training and inference operations, and serve as a key node in the Asia-Pacific AI ecosystem.
The Ulsan center will integrate advanced technologies from SK’s key subsidiaries, including SK hynix’s high-bandwidth memory (HBM) chips, SK Telecom and SK Broadband’s data center expertise, and SK Gas and SK Multi Utility’s energy infrastructure. It will also feature eco-friendly systems with a long-term goal of using clean fuel sources.
President Lee Jae-myung participates in a commemorative ceremony with attendees at the launch event for the Ulsan Artificial Intelligence (AI) Data Center, held at the Ulsan Exhibition and Convention Center on June 20.
From left: Minister of Trade, Industry and Energy Ahn Duk-geun; National Assembly Science, ICT, Broadcasting and Communications Committee Chairperson Choi Min-hee; SK Group Chairman Chey Tae-won; President Lee; AWS Vice President of Infrastructure Prasad Kalyanaraman; Minister of Science and ICT Yoo Sang-gi; and Ulsan Mayor Kim Doo-gyeom. (Image courtesy of Presidential Press Corps)
AWS, which named SK Group its AI hub partner in the Asia-Pacific, will support the deployment of top-tier AI tools within the data center, including UltraCluster networks, Amazon SageMaker, and the Bedrock foundation model platform. Notably, AWS clarified that this collaboration is separate from its previously announced $5.88 billion investment in Korea through 2027.
The Ulsan initiative is seen as both a business venture and a geopolitical asset. SK Group officials described the center as a “core national security infrastructure,” arguing that its decades-long operational life, strategic AI relevance, and U.S. tech partnership enhance South Korea’s position in global tech rivalry and U.S.–Korea economic alignment.
Chey, who has cultivated direct relationships with leading global AI figures including NVIDIA’s Jensen Huang, OpenAI’s Sam Altman, and Microsoft’s Satya Nadella, has positioned SK at the nexus of global tech cooperation. SK plans to invest a total of 82 trillion won ($59 billion) in AI and semiconductors through 2030.
Chairman Chey Tae-won examines a glass substrate at the SK exhibition booth during ‘CES 2025′ (Image provided by SK).
The group expects the Ulsan data center to spark local economic revitalization, projecting over 78,000 new jobs and serving as a catalyst for AI-led manufacturing transformation via digital twins and smart factories.
This effort aligns with President Lee Jae-myung’s national strategy to establish South Korea as one of the world’s top three AI powers.
“AI is not just a tool—it’s a new infrastructure,” Chey wrote on LinkedIn. “And the highway to that future begins in Ulsan.”
Kevin Lee (kevinlee@koreabizwire.com)
