Export-Import Bank Promotes Rare Earth Industry, Signs MOU with LS Cable & Eco Energy

Financial Support Review for Establishing Permanent Magnet Value Chain

The Export-Import Bank of Korea announced on the 26th that it signed a "Business Agreement for the Promotion of the Rare Earth and Electric Drive System Industry" with LS Cable & System and LS Eco Energy on the 23rd.

The main contents of the business agreement include information sharing related to the rare earth permanent magnet and electric drive system business, consultation on financial support necessary for business promotion, and strengthening mutual cooperation to stabilize the supply chain of key items. Rare earth permanent magnets are permanent magnets made from alloys containing rare earth elements, possessing about 5 to 12 times the magnetic force compared to conventional magnets, and are used as core components in drive motors for electric vehicles, wind turbines, and more.

Through this agreement, the Export-Import Bank of Korea will actively consider phased and customized financial support plans for the rare earth permanent magnet value chain construction project promoted by LS Cable & System. LS Cable & System, along with subsidiaries such as LS Eco Energy, is pursuing an investment of approximately 700 billion KRW to produce rare earth alloys and establish a permanent magnet manufacturing plant through a joint venture with overseas partners.

Meanwhile, the bank plans to actively support supply chain stabilization projects of companies contributing to economic security through the Supply Chain Stabilization Fund, which will be launched in the third quarter of this year. This fund was established at the Export-Import Bank of Korea in accordance with the "Basic Act on Supply Chain Stabilization Support for Economic Security," enacted in December last year. Resources will be raised through the issuance of supply chain stabilization fund bonds guaranteed by the government, with the fund size expected to reach up to 5 trillion KRW this year.

President Yoon Hee-sung stated, "We expect this agreement to serve as a foundation supporting the internalization of supply chains and strengthening global competitiveness of our companies active in advanced industries," adding, "The Export-Import Bank of Korea will continue to seek various support measures to secure our economy’s resilience against supply chain crises in line with government policies."

Yoon Hee-sung, President of the Export-Import Bank of Korea (center in the photo), met with Koo Bon-gyu, CEO of LS Cable & System (right in the photo), and Lee Sang-ho, CEO of LS Eco Energy, at the Export-Import Bank headquarters in Yeouido, Seoul, on the 23rd to sign a "Business Agreement for the Development of the Rare Earth and Electric Drive System Industry."
[Photo by Export-Import Bank of Korea]