South Korea's export credit agency will lend $1 billion to Glencore (LSE: GLEN) in exchange for copper supplies to Korean companies, securing access to a metal that has become increasingly vital to artificial intelligence (AI) and power infrastructure.

The Export-Import Bank of Korea will provide the financing to Glencore International AG, a wholly owned subsidiary of the miner and commodities giant, the state-run lender said Monday. Glencore will use the proceeds for general working capital and will supply copper to South Korean companies over the loan period, though the bank did not disclose volumes or other terms.

"Through this financing and our partnership with a company that has established a unique position in the global commodities market, we will be able to secure a stable supply of key materials for Korea's advanced-industry supply chains," an Eximbank official said in the release.

The agreement underscores South Korea's drive to strengthen economic security as rising investment in data centres, power grids and renewable energy equipment fuels demand for copper. As a major importer of industrial metals, South Korea is relying more on structured supply deals to support advanced manufacturing at a time when copper availability has become more closely watched across the market.

Prices rise

Copper prices have climbed about 15% this year and are trading near record highs, as electricity demand and the expansion of AI-related infrastructure add pressure to consumption. The backdrop helps explain why supply access, not just price, has become a priority for industrial users that need the metal for wiring, grids and other electrification equipment.

Glencore ranks among the world's largest copper miners and commodity traders, giving South Korea access to a major participant in both production and global metal flows. The arrangement links state-backed capital directly to physical supply at a time when governments are increasingly treating critical raw materials as an economic-security priority.

Shares in Glencore closed 0.8% stronger on Monday in London at 553.5 pence apiece, valuing the company at £65 billion (US$88.1 billion).

Source: The Northern Miner