Korea Eximbank Backs LS Cable Virginia Plant with 300 Billion Won

The Export-Import Bank of Korea will provide 300 billion won ($217.7 million) in financing for LS Cable & System’s subsea cable factory in the United States.

State backing covers nearly a third of the South Korean manufacturer’s total 1 trillion won ($725.6 million) investment to build the production site in Chesapeake, Virginia. The lender arranged the debt package to secure a foothold for Korean industrial suppliers in the North American energy transmission supply chain.

Targeting AI Grids and Offshore Wind

Construction in Chesapeake is scheduled for completion in the second half of 2027. Once fully operational, the plant will produce 500 kilometres of high-voltage direct-current (HVDC) subsea cables each year to link regional power grids across long distances with minimal transmission loss.

The output will serve power grid operators in North America as well as offshore wind developers in Europe. Rising electricity consumption from hyperscale artificial intelligence data centers is accelerating utility spending on heavy-duty transmission lines that can carry bulk power across borders and coastal waters.

South Korean Cable Makers Push Abroad

South Korean manufacturers are building manufacturing capacity closer to Western grid projects as local transmission networks face backlogs. Rivals such as Taihan Cable are also expanding their subsea and offshore installation capabilities to capture orders outside East Asia.

State lenders plan to issue additional credit lines to domestic cable producers competing for long-term supply contracts across North America and Europe. The Chesapeake plant remains on track to start commercial deliveries by late 2027.