Samsung Electronics and SK hynix have rejected Korea Electric Power Corp.’s (KEPCO) proposal to prepay about five years of electricity bills.

Internal reviews found the upfront commitment difficult amid uncertainty over whether the semiconductor industry’s AI-driven boom will continue.

Industry sources said the state-run utility asked Samsung Electronics to prepay 20 trillion won (US$14.8 billion) and SK hynix 5 trillion won (US$3.7 billion), based roughly on each company’s electricity payments last year.

The proposed prepayments could have helped expand power infrastructure for semiconductor clusters under construction in Yongin, just south of Seoul, and in the Honam region.

KEPCO’s total debt stood at 210.7 trillion won (US$156 billion) at the end of June.

Its daily interest expenses were 11.5 billion won (US$8.51 million).

🔗 Source: Yonhap

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