Export-Import Bank of Korea to provide W300b to LS Cable's US submarine cable factory

The Export-Import Bank of Korea said Monday it will provide 300 billion won ($215 million) in financing to LS Cable & System's submarine cable factory in the United States.

LS Cable is currently investing about 1 trillion won to build the facility in Chesapeake, Virginia. When the factory is completed in the second half of next year, it will be capable of producing 500 kilometers of HVDC submarine cable annually. The cables are intended for North American markets and offshore wind farms in Europe.

HVDC refers to high-voltage direct current transmission lines laid on the seabed to carry large volumes of electricity over long distances — between land and islands, or between countries — with minimal energy loss.

Demand for HVDC submarine cables is expected to climb sharply as offshore wind power gains recognition as a key energy source for carbon neutrality, particularly amid a surge in global electricity consumption driven by AI data centers.

The bank said the financing will help LS Cable secure an early foothold in the North American cable supply chain and expand into European markets.

"The importance of power infrastructure in the AI era is becoming increasingly apparent, and the relevant market is expected to grow rapidly," a bank official said. "Through preferential financing under our 'AI Great Transformation Special Program,' we will actively support domestic cable companies in expanding their market share and securing technological leadership."

Also this month, the bank agreed to provide $1 billion in financing to global diversified resources company Glencore to help ensure a stable supply of copper, an essential material for strategic industries including AI.