The Export-Import Bank of Korea (KEXIM) to Lend 250 Billion Won to LG Chem's Sustainable Aviation Fuel Project

[Financial News] The Export-Import Bank of Korea said on the 22nd that it would lend approximately 250 billion won to LG Chem's 'construction and operation project for South Korea's first dedicated sustainable aviation fuel (SAF) facility.'
The project involves building new facilities with a total capacity of 340,000 tons to produce environmentally friendly biofuel (HVO) at LG Chem's petrochemical complex in Daesan, Chungnam. Sustainable aviation fuel is a biofuel made from used cooking oil, agricultural and forestry byproducts, biomass, and other sources.   
KEXIM decided to provide support in response to the global aviation fuel market's shift toward cleaner alternatives. As the lead arranger for the project's financing, KEXIM led the financial structuring. It completed the complex project financing (PF) deal in collaboration with commercial banks and foreign commercial banks.
LG Chem established a joint venture with Italian energy company Enilive and is building South Korea's first HVO and SAF production facility. Construction began in August 2025, with completion targeted for 2028.
Recently, major countries including the European Union (EU) and the United States have required the use of sustainable aviation fuel at specified ratios. The government is also set to implement a sustainable aviation fuel blending mandate starting next year. A KEXIM official said, "Securing an early lead in the market for environmentally friendly biofuels, including sustainable aviation fuel, amid global carbon-neutrality efforts and tighter regulations is a key task that will determine the future competitiveness of the petrochemical and energy industries." 
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