The Export-Import Bank of Korea (Korea Eximbank) will provide ₩300 billion (approximately $216.5 million) in financing for LS Cable & System’s subsea cable plant construction in Virginia, United States. The move is designed to support South Korean cable manufacturers’ entry into the North American and European markets amid surging global power infrastructure demand driven by the proliferation of artificial intelligence (AI) data centers.

Korea Eximbank announced on the 24th that it will supply ₩300 billion for LS Cable’s subsea cable plant construction project underway in Chesapeake, Virginia. LS Cable is investing approximately ₩1 trillion (approximately $721.7 million) to build the facility, which upon completion in the second half of next year will have annual production capacity of 500 kilometers of high-voltage direct current (HVDC) subsea cable. Output will be supplied to the North American market and offshore wind farms in Europe.

HVDC subsea cable is high-voltage direct current transmission line installed on the seabed to deliver large-capacity power over long distances between land and islands, or between countries, while minimizing transmission losses. Demand for this product is expected to grow further as power consumption rises sharply with the spread of AI data centers, and as offshore wind emerges as a core carbon-neutral energy source.

Korea Eximbank expects this financing to help LS Cable secure a first-mover advantage in the North American cable supply chain and accelerate its entry into the European market. A Korea Eximbank official said, “As the importance of power infrastructure in the AI era comes to the fore, the related market is projected to expand rapidly,” adding, “Since HVDC subsea cable is a core component in building AI data center power grids, we will actively support South Korean cable manufacturers in expanding market share and securing technology leadership through preferential financing under the ‘AI Transformation (AX) Special Program’ introduced earlier this year.”

Separate Financing to Secure Copper Supply

In addition to the LS Cable financing, Korea Eximbank has decided to provide a total of $1 billion (approximately ₩1.4 trillion) in financing to Glencore, a global integrated resources company. The measure aims to secure a stable supply of copper, an essential material for strategic industries including AI. This is seen as a move to preemptively secure the copper supply chain—a key raw material for cable production—thereby helping South Korean cable manufacturers maintain competitiveness in the global market.

Growth in AI Power Infrastructure Market

The global power infrastructure market is expanding rapidly alongside the explosive growth of AI data centers. Operating data centers requires enormous amounts of electricity, which has heightened the importance of HVDC technology capable of efficiently transmitting large-capacity power. In particular, with offshore wind farm construction accelerating along the US East Coast and Europe’s North Sea region, demand for subsea cable is expected to grow structurally.

LS Cable’s Virginia plant is expected to become the largest subsea cable production facility in the United States. With the US government expanding domestic power infrastructure investment, LS Cable—having secured a local production base—is positioned to gain an advantage in future US government and private-sector project orders.

Korea Eximbank’s financing goes beyond simple capital provision; it carries the strong character of policy financing aimed at securing global competitiveness for South Korean companies in the strategic field of AI-era power infrastructure. Attention is focused on whether this support, utilizing the AI Transformation Special Program, can serve as a reference case for other South Korean cable and power equipment manufacturers seeking to expand overseas.