Key facts
- Samsung Electronics and SK Hynix rejected a proposal from Korea Electric Power Corp. (KEPCO) to prepay electricity bills.
- KEPCO requested 20 trillion won from Samsung Electronics and 5 trillion won from SK hynix.
- The chipmakers cited uncertainty over the long-term durability of semiconductor demand.
- The prepayment was intended to support power supplies for planned semiconductor mega clusters.
- KEPCO's total debt reached 210.7 trillion won by the end of June.
Samsung Electronics and SK Hynix have rejected a proposal by state-run Korea Electric Power Corp. (KEPCO) to make a 25 trillion won ($18.7 billion) upfront payment to support power supplies for planned semiconductor mega clusters, according to a document submitted to a lawmaker. The two chipmakers informed KEPCO that accepting the proposal would be difficult following internal reviews. They cited uncertainty over the long-term durability of semiconductor demand as a reason for their hesitation to commit such large upfront payments. The proposed scheme was intended to help KEPCO invest in infrastructure for new chip fabrication plants. KEPCO's total debt reached 210.7 trillion won by the end of June, with daily interest expenses amounting to 11.5 billion won.