Samsung, SK Hynix reject US$18 billion power prepayment to fund new grids: reports

Local media reports claim that Samsung Electronics and SK Hynix have turned down a proposal from Korea Electric Power Corp (Kepco) for a US$18 billion power prepayment to fund the construction of new grids. The firms expressed concerns about committing such a substantial amount upfront due to uncertainty surrounding the prolonged semiconductor boom.

The plan, estimated at 25 trillion won (US$18 billion), aimed to address the growing demand from the semiconductor and artificial intelligence industries. Kepco's proposal would have seen the chipmakers pay the 25 trillion won over a year, with Kepco bearing interest on the remaining prepaid balances. The rejection of the deal would reduce Kepco's reliance on bond issuance for funding.