Shinsegae lands major AI deal through global ties

Mar 17, 2026, 10:06 am

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Shinsegae Group Chairman Chung Yong-jin (second from right) and Reflection AI CEO Misha Laskin (center) pose with U.S. Commerce Secretary Howard Lutnick (second from left) at an MOU signing ceremony for a sovereign AI factory in San Francisco on March 16. / Courtesy of Shinsegae Group

Shinsegae Group has emerged as a key player in the global AI infrastructure race by partnering with U.S.-based Reflection AI to build Korea’s largest AI data center, marking the first major outcome of Washington’s AI export initiative.

The company announced on March 16 (local time) that it signed a memorandum of understanding (MOU) with Reflection AI in San Francisco to establish a “sovereign AI factory” in Korea. The project will involve constructing a 250-megawatt AI data center, the largest of its kind planned in the country.

The deal is being viewed as the first flagship case under the U.S. government’s “AI export program,” which aims to deploy full-stack AI infrastructure—including GPUs, data centers, cloud platforms and AI models—across allied nations.

U.S. Commerce Secretary Howard Lutnick attended the signing ceremony, signaling strong government backing for the initiative.

The project is rooted in an executive order signed by President Donald Trump in July last year to promote exports of the American AI technology stack. The policy is designed to build an alliance-centered AI ecosystem and strengthen U.S. competitiveness against China.

Shinsegae Chairman Chung Yong-jin’s global network is also seen as a key factor behind the deal. The company said Chung met U.S. Vice President J.D. Vance and other senior officials at a December dinner in Washington, where potential cooperation under the AI export program was discussed.

The partnership also aligns with the Korea-U.S. “Technology Prosperity Partnership” agreed during the APEC summit in Gyeongju last year, making this project the first private-sector outcome of the bilateral initiative.

A critical component of the project is securing high-performance GPUs, essential for AI computing. Reflection AI, which has received significant investment from Nvidia, provides Shinsegae with access to global GPU supply chains.

Using these resources, the two companies plan to build a full-stack AI platform offering cloud services, AI models and customized solutions.

The project also ties into Korea’s sovereign AI strategy, which aims to ensure national control over data, AI models and infrastructure. Reflection AI specializes in open-weight models, enabling flexible system design and independent data management.

For Shinsegae, the investment marks a strategic shift from a traditional retail powerhouse to an AI infrastructure company. By integrating AI with its extensive retail data, logistics networks and e-commerce platforms, the group aims to develop next-generation services such as AI-driven personalized shopping and automated supply chains.

The company has also outlined plans for AI agent-based commerce, where AI systems handle product selection, payment and delivery on behalf of customers.

Industry observers say the project could serve as a new model linking U.S. technology, Korean industrial capacity and global AI markets.

Chung said, “AI will fundamentally transform all aspects of industry, the economy and human life, making it impossible for future industries to survive without it,” adding that the partnership will not only drive Shinsegae’s future growth but also enhance Korea’s overall AI ecosystem.

Reflection AI CEO Misha Laskin said, “Korea is a global AI leader and a strong U.S. ally. Together with Shinsegae, we will build AI infrastructure that Korea can independently develop and evolve.”

#Shinsegae #Chung Yong-jin #Reflection AI #Nvidia GPU #AI export program