The Export-Import Bank of Korea will provide 300 billion won ($218 million) in financing for LS Cable & System's subsea cable plant in the United States, stepping up support for Korean companies seeking to tap growing power infrastructure demand in North America.
The state-run lender said Monday it will provide facility and operating financing for the plant under construction in Chesapeake, Virginia, which is expected to become the largest subsea cable production facility in the US.
Surging AI investment and data center construction have fueled demand for power grid upgrades across North America and Europe. The expansion of offshore wind is also boosting demand for high-voltage direct current subsea cables, which can carry large volumes of electricity over long distances with limited transmission losses.
LS Cable is investing about 1 trillion won in the Chesapeake plant, which is scheduled for completion in the second half of next year. Once operational, it will be able to produce about 500 kilometers of HVDC subsea cables a year for power grid projects in North America and major offshore wind developments in Europe.
Eximbank said it plans to use its "AI Transformation Special Program," launched in January, to support the project. The program is designed to provide 22 trillion won in preferential financing over five years to strengthen Korean companies' competitiveness in AI-related industries.
"As power infrastructure becomes increasingly critical in the AI era, the market is expected to grow rapidly," an Eximbank official said. "Through our AI Transformation Special Program, we will help Korean cable makers expand their market share and strengthen their technological edge."
jwc@heraldcorp.com