Samsung, SK Hynix Reject KEPCO’s $19 Billion Power Prepayment Proposal, Document Shows
The chipmakers said the upfront bills were difficult to accept as KEPCO carries 210.7 trillion won in debt, Reuters reported.
- On Monday, Samsung Electronics and SK Hynix Inc. rejected a proposal from state-run Korea Electric Power Corp. to prepay 25 trillion won for electricity supporting new semiconductor mega clusters.
- Debt-Ridden KEPCO, carrying 210.7 trillion won in total debt, sought the massive upfront payment to fund infrastructure and reduce reliance on bond issuance for power-hungry facilities.
- Following internal reviews, Samsung and SK Hynix declined the five-year prepayment plan, citing uncertainty over the long-term durability of semiconductor demand and questioning such large upfront commitments.
- Although KEPCO offered to pay interest on prepaid balances, the rejection forces the utility to seek alternative funding while managing daily interest expenses of 11.5 billion won.
- Utilities across Asia continue to struggle with massive energy demands from semiconductor and artificial intelligence industries, a systemic difficulty intensified by KEPCO's rejection.
17 Articles
17 Articles
It has been confirmed that Samsung Electronics and SK Hynix rejected KEPCO's proposal to prepay 25 trillion won in electricity bills for the next five years to secure funds needed for power grid construction. According to industry sources on the 14th, Samsung Electronics and SK Hynix internally [rejected] KEPCO's proposal for the prepayment of electricity bills
Samsung, SK Hynix Reject Kepco’s Power Grid Prepayment Plan
Samsung Electronics Co. and SK Hynix Inc. have rejected a proposal from Korea Electric Power Corp. that would have seen the two pay in advance for electricity in order to finance the construction of grids to power new technology clusters.
Samsung Electronics and SK Hynix have reportedly rejected a proposal by Korea Electric Power Corporation (KEPCO) to prepay 25 trillion won in electricity bills for five years, despite expectations for the expansion of power infrastructure and a decision to minimize management uncertainty. According to industry sources on the 14th, Samsung Electronics and SK Hynix [referred to as "KEPCO's..."
Samsung, SK Hynix reject KEPCO’s $19 billion power prepayment proposal, document shows
SEOUL, Sept 14 (Reuters) - Samsung Electronics and SK Hynix have rejected a proposal by Korea Electric Power Corp to make a 25 trillion won ($18.7 billion) upfront payment to support power supplies for planned semiconductor mega clusters, according ...
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