KEPCO proposes 25 trillion won power-bill prepayment from Samsung, SK hynix

  • KEPCO proposed Samsung and SK Hynix prepay a combined $18.1 billion.
  • Samsung would advance $14.5 billion and SK Hynix $3.6 billion.
  • Sides still negotiate interest rates, amounts and whether to proceed.

Korea Electric Power Corp. has proposed that Samsung Electronics and SK Hynix prepay a combined $18.1 billion in electricity charges—about $14.5 billion from Samsung and $3.6 billion from SK Hynix—equal to roughly five years of their recent power bills. KEPCO would use the funds to build large-scale transmission networks for semiconductor clusters in Yongin and the Honam region, cut debt and ease bond-market pressure, while the chipmakers would help finance grid delivery and secure stable supply. The sides are negotiating an interest rate set between the yield on two-year South Korean Treasury bonds and two-year KEPCO bonds, with one option to settle interest through electricity-bill deductions every six months. Talks involving the finance ministry, company executives and the presidential office have advanced since July, and a National Assembly amendment has been proposed to restrict how KEPCO can use advance payments. Both companies are still weighing the size, rate and whether to proceed.

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