Korea taps Glencore for copper supply with $1B loan deal
Seoul ties financing to long-term metal access as AI infrastructure and power demand tighten global copper markets.
South Korea’s export credit agency, Eximbank, has entered into a $1 billion loan deal with Glencore, a leading copper miner and commodities giant. The agreement aims to secure a steady supply of copper to South Korean companies, which is crucial for industries such as artificial intelligence and power infrastructure. The Export-Import Bank of Korea will provide the financing to Glencore International AG, a wholly-owned subsidiary of the miner and commodities firm.
The exact volume and other terms of the loan were not disclosed by the bank. According to an Eximbank official, the financing will allow South Korea to ensure a stable supply of essential materials for its advanced industry supply chains. As data centers, power grids, and renewable energy equipment continue to drive demand for copper, South Korea's reliance on imports of the metal puts its advanced manufacturing industries at risk of supply disruptions and heightened global market volatility.
Copper prices have increased by approximately 15% this year and are trading near record highs due to rising electricity demand and the expansion of AI-related infrastructure. Glencore, being one of the world's largest copper miners and commodity traders, provides South Korea with access to a major participant in both production and global metal flows.
The Eximbank official emphasized that the agreement is a proactive measure to address economic-security concerns, as governments increasingly recognize critical raw materials as a priority.
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