Korea Eximbank commits $200 mil. to fuel LG Electronics' AI export drive

Korea Eximbank Chairman Hwang Ki-yeon, second from left, listens to a briefing during a visit to LG Electronics' smart factory in Changwon, South Gyeongsang Province, Tuesday. Courtesy of Korea Eximbank

The Export-Import Bank of Korea (Korea Eximbank) is set to provide 300 billion won ($200 million) in financing to support LG Electronics’ artificial intelligence (AI) initiatives, including an overseas export project for AI data center cooling solutions, the state-run policy bank said Wednesday.

According to a memorandum of understanding (MOU) signed by the two parties, the financing will be extended under the bank’s preferential AX program, a newly introduced scheme designed to support companies advancing AI-driven business transitions.

In parallel, the policy lender plans to offer support — including export and overseas investment financing, as well as bundled support packages for joint overseas expansion — to small and midsized partners that supply equipment or join in on LG Electronics’ international projects. Suppliers linked to LG’s Changwon plant in South Gyeongsang Province will be eligible for interest rates as low as 1.2 percent.

Separately, LG Electronics will provide consulting and technical personnel to help its regional partners in Changwon establish smart factories.

The agreement would serve as “a catalyst for both the conglomerate and smaller firms to grow together through AI data center exports,” Korea Eximbank Chairman Hwang Ki-yeon said during his visit to LG’s smart factory on Tuesday.

“The bank will take the lead in building a virtuous cycle of AI export industrialization and regional growth by operating 3.5 trillion won in cooperative growth financing and a 22 trillion won AX program," he said.