South Korea Electric Power Corp (KEPCO) has proposed that Samsung Electronics
and SK Hynix prepay five years of electricity fees totaling 25 trillion won
(about $18.4bn) to fund grid construction for semiconductor clusters. Under the
plan Samsung would prepay 20 trillion won and SK Hynix 5 trillion won; the
amounts assume 2027–31 annual power costs will be roughly in line with last year
(Samsung paid 4.1 trillion won last year; SK Hynix 900 billion won). Industry
sources say both companies are considering the proposal. KEPCO’s finances have
weakened — debt stood at 210.7 trillion won at end-June and interest costs are
about 11.5 billion won per day — a factor behind the proposal; the prepayment is
being pitched as a potentially mutually beneficial arrangement.
