Korea Eximbank Funds LS Cable’s U.S. Plant

The Export-Import Bank of Korea (Korea Eximbank) has announced a substantial 300 billion won ($216.6 million) in financing for LS Cable & System to construct a vast submarine cable plant in Chesapeake, Virginia, United States. This project, which will be the largest of its kind in the US, is part of an effort to bolster the Korean cable industry and secure global technological leadership.

The 1 trillion won investment in the plant is expected to be completed by the second half of next year, with a capacity to produce up to 500 kilometers of high-voltage direct current (HVDC) submarine cables annually.

These HVDC submarine cables, which transmit large-capacity power over long distances with minimal loss between land, islands, and countries, are a high-value-added product with significant barriers to entry. The demand for such advanced technology is surging due to the rapid growth of AI data centers and the rising need for offshore wind power generation, a key component of carbon neutrality initiatives.

The Export-Import Bank is leveraging its newly established 'AI Transformation (AX) Special Program,' a core policy financing mechanism aimed at supporting the global competitiveness of the AI industry, to provide full-scale benefits to LS Cable & System. This program, with a total budget of 22 trillion won over five years, is actively funding projects that will strengthen the AI industry's position in the global market.

The bank's spokesperson emphasized the critical role of power infrastructure in the AI era and expressed their commitment to supporting domestic cable companies in expanding their global market share and securing technological superiority through preferential financing under the special program.