Samsung Electronics and SK hynix reject a proposal from Korea Electric Power Corp. (KEPCO) under which the chipmakers would prepay electricity bills to finance power-grid construction for new technology clusters.
Bloomberg and other outlets report that both companies decline KEPCO’s prepayment plan after internal review. Korea Times and Investing.com cite documents and industry sources indicating KEPCO’s offer involves large upfront payments—reported as roughly five years of electricity costs based on last year’s payments. Korea Times specifies proposed amounts of 20 trillion won for Samsung and 5 trillion won for SK hynix, framing the rejection as related to reluctance to commit such sums upfront amid uncertainty over whether the current semiconductor and AI-driven demand surge will persist.
The reports also describe where new infrastructure is intended to support expansion: grid buildouts linked to semiconductor cluster development in Yongin, near Seoul, and the Honam region. While the outlets differ on the emphasis—Bloomberg focuses on the rejection itself and the overall proposal, and Korea Times adds context on the rationale—the core point is that both chipmakers do not accept KEPCO’s multi-year prepayment scheme.
