Korea Eximbank Commits ₩300 Billion to LS Cable’s US Subsea Cable Plant Amid AI Power Grid Demand

The Export-Import Bank of Korea (Korea Eximbank) has announced a ₩300 billion (approximately $216.5 million) financing package to support LS Cable & System’s construction of a subsea cable manufacturing facility in Chesapeake, Virginia. The funding is aimed at bolstering South Korean cable makers’ foothold in North American and European markets, where demand for power infrastructure is surging on the back of artificial intelligence (AI) data center expansion and offshore wind development.

LS Cable is investing roughly ₩1 trillion (about $721.7 million) in the project, which is slated for completion in the second half of next year. Once operational, the plant will have an annual production capacity of 500 kilometers of high-voltage direct current (HVDC) subsea cable, with output destined for the North American market and European offshore wind farms. HVDC subsea cables are designed to transmit large volumes of electricity over long distances—between land and islands or across borders—while minimizing transmission losses, making them increasingly critical as power consumption climbs with AI-driven data center loads and as renewable energy sources gain traction.

Korea Eximbank’s support is intended to give LS Cable a first-mover advantage in the North American cable supply chain and accelerate its entry into Europe. A bank official said, “As the importance of power infrastructure in the AI era comes to the fore, the related market is projected to expand rapidly.” The official added that HVDC subsea cable is a core component in building AI data center power grids, and that the bank 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.

In a related move, Korea Eximbank has also decided to provide $1 billion (approximately ₩1.4 trillion) in financing to Glencore, a global integrated resources company. This separate initiative aims to secure a stable supply of copper, an essential raw material for cable production and other strategic industries including AI. Analysts view this as a preemptive step to lock in the copper supply chain, thereby helping South Korean cable makers maintain global competitiveness as raw material prices and demand fluctuate.

The broader power infrastructure market is expanding rapidly alongside the explosive growth of AI data centers, which require enormous amounts of electricity. This has heightened the importance of HVDC technology for efficient, large-capacity power transmission. With offshore wind farm construction accelerating along the US East Coast and in Europe’s North Sea region, demand for subsea cable is expected to grow structurally. LS Cable’s Virginia facility is poised to become the largest subsea cable production plant in the United States, and with Washington ramping up domestic power infrastructure investment, the company’s local production base could provide an edge in securing future government and private-sector contracts.

Korea Eximbank’s financing goes beyond simple capital provision, carrying the strong character of policy funding aimed at securing global competitiveness for South Korean companies in the strategic field of AI-era power infrastructure. Industry observers are watching whether this support, channeled through the AI Transformation Special Program, can serve as a reference case for other South Korean cable and power equipment manufacturers seeking to expand overseas.