Korea Electric Power Corp. (KEPCO) requested 25 trillion won ($18.4 billion) in prepaid electricity bills from Samsung Electronics and SK Hynix. Samsung would contribute 20 trillion won to the total, while SK Hynix would provide 5 trillion won. These payments cover projected electricity costs for the five-year period between 2027 and 2031.
The state-run utility plans to use the funds to build power grids for new semiconductor manufacturing clusters. KEPCO is currently facing financial strain and struggling to finance the massive infrastructure investment required for these facilities.
In exchange for the advance, KEPCO offered interest rates exceeding South Korean government bonds. These returns would likely be applied as discounts on future electricity bills. Both chipmakers are reviewing the proposal to ensure a stable power supply for their expansion projects. KEPCO confirmed the request but noted that final terms and interest rates remain undecided.