Media: KEPCO offers Samsung $15 billion electricity prepayment
South Korean state energy company Korea Electric Power Corp (KEPCO) has proposed that Samsung Electronics pay 20 trillion won, or about $15 billion, in advance for electricity through 2031, the Chosun Ilbo newspaper reported. According to the newspaper, the funds would help finance the expansion of the power grid.
Prepayment terms have not yet been agreed
As Channel NewsAsia reports, citing Reuters and Chosun Ilbo, an advance payment of 5 trillion won was also considered for SK Hynix. The newspaper cited an internal KEPCO document.
KEPCO confirmed that it had proposed a prepayment scheme to major electricity consumers, including Samsung and SK Hynix. At the same time, the companies' participation, interest rates, payment amounts and payment terms have not yet been finalized.
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Grid investments
According to KEPCO, the mechanism is intended to help cover growing investment needs related to semiconductor projects and artificial intelligence data centers. The companies, meanwhile, could gain greater certainty regarding the timely supply of electricity for new factories.
According to Chosun Ilbo, KEPCO planned to direct the funds raised toward building power transmission networks and substations for chip manufacturing facilities. The company would also pay participants interest higher than the yield on South Korea's two-year government bonds. Samsung did not immediately comment, while SK Hynix did not respond to a Reuters request.
