Mubo Supports 300 Billion KRW for Taiwanese Offshore Wind Power Project Involving Korean Companies

[Asia Economy Reporter Moon Chaeseok] The Korea Trade Insurance Corporation (K-Sure) is supporting $260 million (approximately 303.6 billion KRW) for Taiwanese offshore wind power projects involving LS Cable & System and Samkang M&T to foster new industry development and strengthen export momentum for domestic companies.

On the 9th, K-Sure announced that just three months after supporting the Formosa 2 project last October, it has once again led Korean companies to participate in Taiwan's large-scale offshore wind farm development project, the 'CFXD Project.'

The CFXD Project involves constructing and operating a 376-megawatt (MW) offshore wind power plant off the northwest coast of Taiwan. Domestic companies such as LS Cable & System are participating as subcontractors in the project.

The project budget is $3.6 billion (approximately 4.18 trillion KRW), used to build and operate a 600MW offshore wind power plant off the west coast of the Changhua region in Taiwan.

Copenhagen Infrastructure Partners, a power and infrastructure investment and development company based in Copenhagen, Denmark, is participating as the project owner. They secured a stable revenue structure by signing a 20-year long-term power purchase agreement with Taiwan Power Company (Taipower).

In addition to Denmark, export credit agencies (ECAs) from the United Kingdom, Norway, the Netherlands, and Japan are providing financial support. Domestically, K-Sure and KDB Industrial Bank are participating.

K-Sure issued medium- to long-term export insurance policies as collateral, enabling banks to lend funds to the project owner. The project owner used the loan funds to purchase equipment supplied by domestic companies. K-Sure stated that it has actively engaged in financial negotiations with participants from the early stages of the project.

Domestically, LS Cable & System and Samkang M&T are entering the project through infrastructure supply contracts worth $200 million (two companies each securing $100 million).

K-Sure emphasized the significance of Samkang M&T, a mid-sized company, securing $100 million, which accounts for 50% of the domestic companies' order volume. This is seen as a joint overseas wind power business entry by both large and mid-sized companies.

Lee In-ho, President of K-Sure, stated, "Fostering new industries such as offshore wind power will take time, but it is a necessary path to strengthen Korea's export competitiveness. We plan to continue actively discovering new industry entry opportunities and steadily support domestic companies to enhance their expertise and competitiveness."