The Export-Import Bank of Korea (Korea Eximbank) has agreed to a US$1 billion (AU$1.5 billion) financing agreement with Glencore to secure a stable supply of copper for South Korean companies.
Under the arrangement, Korea Eximbank will provide the funding to support Glencore’s general corporate and working capital operations, The Korea Herald reported.
In return, the global mining giant will supply copper to South Korean businesses throughout the loan period.
The partnership comes amid a sharp rise in global demand for the industrial metal, driven by the rapid expansion of AI, renewable energy infrastructure, and power grids.
Copper is a critical component in data centres, electric vehicles, and power transmission systems, causing global prices to surge by roughly 15 per cent this year.
South Korea relies heavily on imports for its critical raw materials. By partnering with Glencore, which operates a vast network of copper mines and smelters across South America, including key operations in Chile and Peru, South Korea aims to insulate its advanced tech and manufacturing sectors against potential supply chain disruptions.
“By partnering with a leading global commodities company, we can secure a stable supply of key materials for Korea’s advanced industries,” a Korea Eximbank official said.
“This financing is significant as a proactive economic security measure.”
Glencore’s diversified global trading ecosystem handles more than 60 commodities, providing Korea Eximbank with alternative supply routes should production hit hurdles in primary sourcing regions.
The deal highlights a growing trend of export credit agencies taking proactive financial measures to safeguard national supply chains for critical energy-transition and high-tech minerals.
