Korea Eximbank Lends $1 Billion to Glencore for Copper Supply

Korea Eximbank has agreed to lend $1 billion to Glencore Plc in exchange for copper supply to South Korean companies. The loan will be provided to Glencore International AG, a wholly owned subsidiary of the commodities giant.

The proceeds from the loan will be used for general working capital and Glencore has committed to supplying copper to Korean companies during the loan period. The state-run Korean lender described the move as 'preemptive' from an economic-security perspective.

Korea is reliant on imports of copper, which is used in power grids, data centers, and for renewable energy equipment. Demand for the industrial material has surged due to the AI data boom and rising electricity demand, with prices jumping around 15% this year and nearing a record high.