SK Holdings, KKR Launch $1.3B Renewable Energy Venture in South Korea

South Korean conglomerate SK Holdings Co. Ltd. and U.S.-based investment firm KKR & Co. have announced a 2 trillion won ($1.3 billion) joint venture to establish what they describe as South Korea’s largest renewable energy platform. The partnership is designed to meet the country’s rapidly growing electricity demand, fueled by the expansion of artificial intelligence (AI) infrastructure, hyperscale data centers, and advanced semiconductor manufacturing.

Under the agreement, KKR will acquire a 51% stake in the newly created renewable energy company, while SK Holdings will retain the remaining 49% ownership. The platform will initially include around 1.7 gigawatts (GW) of operating and pipeline renewable energy assets, with an ambitious long-term target of expanding capacity to 10 GW.

The new company will consolidate renewable energy assets currently owned by several SK Group affiliates, including SK Innovation, SK ecoplant, and SK Eternix. By bringing these businesses together under a single platform, SK and KKR aim to improve operational efficiency, accelerate clean energy development, and strengthen South Korea’s renewable energy infrastructure.

The investment ranks among the largest renewable energy infrastructure transactions in South Korea and reflects increasing investor confidence in clean energy projects. Rising power consumption from AI technologies, cloud computing, semiconductor fabrication facilities, and next-generation digital infrastructure has significantly boosted demand for reliable renewable electricity, making large-scale energy platforms increasingly attractive.

Despite the announcement, SK Holdings shares declined 8.2% to 766,000 won, underperforming the broader KOSPI index, which fell roughly 1.6% during afternoon trading. Investors appeared cautious as they evaluated the financial implications of the transaction and the company's future capital allocation strategy.

The companies expect the transaction to be completed later this year, subject to customary regulatory approvals. Once finalized, the partnership is expected to play a key role in supporting South Korea’s transition toward cleaner energy while helping meet the increasing electricity requirements of AI-driven industries and the country’s globally competitive semiconductor sector.