K-Sure backs €900 million financing for Serbia solar power project

The Korea Trade Insurance Corporation (K-Sure) announced on June 22 that it will provide export financing support worth €900 million for a major solar power project in Serbia led by a consortium involving Hyundai Engineering.

The state-backed outfit noted that the project is part of Serbia’s energy transition strategy as the country works toward European Union membership. 

It involves the construction of solar power facilities with a total generation capacity of 1,200 megawatts, making it one of the largest renewable energy initiatives in the region.

Hyundai Engineering is leading the project in partnership with U.S.-based investment and development company UGT Renewables, K-Sure said.

The consortium will oversee the engineering, procurement and construction (EPC) of the solar plants, while key equipment, including solar modules and transformers, will be supplied by South Korean manufacturers.

K-Sure’s support will be provided through a reinsurance arrangement covering the portion of financing backed by Sweden’s export credit agency, EKN, that is associated with the supply of Korean-made products, according to the firm.

The structure will allow the participating institutions to share project risks while facilitating exports of Korean renewable energy equipment.

The Serbia project is particularly significant as it represents the largest overseas solar power venture secured by a Korean company to date and the first participation by a South Korean firm in a Serbian national energy project.

“Korean companies’ involvement in this project is highly meaningful, as it is both the largest overseas solar project won by our firms and the first case of participation in Serbia’s national energy program,” K-Sure CEO Jang Young-jin said.

“As the global energy paradigm shifts toward cleaner and more sustainable sources, K-Sure will continue to provide strong support for Korean companies seeking opportunities in overseas renewable energy markets.”

More support for global energy & construction projects

The agreement marks the second major collaboration between K-Sure and EKN in the renewable energy sector. 

The two export credit agencies previously worked together in 2020 to support a solar power project in Angola, demonstrating how international cooperation can facilitate large-scale clean energy investments.

By sharing project risks through a reinsurance framework, K-Sure and EKN are helping to mobilize financing for renewable energy infrastructure while enabling Korean companies to expand their presence in overseas markets. 

K-Sure expects that the financing support will strengthen the international competitiveness of Korean manufacturers and engineering firms by increasing exports of high-value renewable energy equipment and services. 

Industry observers point out that such partnerships are becoming increasingly important as global demand for renewable energy projects accelerates and competition among suppliers intensifies.

“An increasing number of South Korean builders and energy companies are taking part in overseas projects, which need financing support,” economic commentator Kim Kyeong-joon, formerly Deloitte Consulting Korea vice chairman, said.

“Accordingly, the Seoul administration and state-run agengies would have to put forth more efforts to underpin such efforts down the road.”