Korea Eximbank Lends US$1 Billion to Glencore in Copper Supply Deal

Korea Eximbank has agreed to lend US$1 billion to Glencore International AG, a wholly owned subsidiary of commodities giant Glencore Plc. The loan will be used for general working capital and is contingent on the company supplying copper to South Korean companies during the loan period.

The move aims to secure raw materials needed for the artificial intelligence boom in Korea, which has boosted demand for copper. According to Eximbank, the AI data boom and rising electricity demand have driven up copper prices by around 15% this year.

An official from Eximbank described the loan as 'preemptive' from an economic-security perspective, saying it will enable Korea to secure a stable supply of key materials for its advanced-industry supply chains. Glencore is one of the world's biggest copper miners and commodity traders.