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 c

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.