Samsung, SK Hynix Reject KEPCO's $19B Power Prepayment Proposal
PUBLISHED Sep 14, 2026, 1:54 AM ET
Samsung Electronics and SK Hynix have officially rejected a proposal by Korea Electric Power Corporation (KEPCO) to prepay 25 trillion won, equivalent to roughly $18.7 billion, in electricity bills. KEPCO submitted the plan to secure upfront financing for grid infrastructure and transmission networks powering new semiconductor mega clusters. The utility company sought five years of advance power payments, with Samsung asked to contribute 20 trillion won and SK Hynix 5 trillion won. Both chipmakers declined following internal reviews, citing business uncertainty and the need to preserve capital amid fluctuating long-term technology cycles. KEPCO faces severe financial pressure, reporting total liabilities of 210.7 trillion won and daily interest expenses reaching 11.5 billion won as of June. The rejection threatens infrastructure timelines for major industrial complexes, leaving the state-run utility to rely on traditional debt issuance and government frameworks.
By Neha R. | JQJO News
- Articles Published:
- 27
- Right Leaning:
- 0
- Left Leaning:
- 0
- Neutral:
- 27
- Distribution:
- Left 0%, Center 100%, Right 0%
Left: Insufficient evidence available to determine specific left-leaning framing. Center: Reports financial friction objectively between state utility and chip giants. Right: Insufficient evidence available to determine specific right-leaning framing.
KEPCO document leak revealed chipmakers rejected $19 billion prepayment proposal. https://www.businesskorea.co.kr/news/articleView.html?idxno=276824
Coverage of Story:
From Left
No left-leaning sources found for this story.
From Center
Samsung, SK Hynix reject Kepco’s power grid prepayment plan
Business Times Neoteo Business Recorder The Straits Times SBS News Korea Herald Korea Herald (Overview) Seeking Alpha KED Global The Standard HK Korea JoongAng Daily Korea JoongAng Daily (ADR) Investing.com Investing.com (SK Hynix Equity) Investing.com (SK Hynix ADR) Investing.com (KEPCO Equity) Investing.com (Samsung Equity) TradingView TradingView Korea Nasdaq Indexes Business Recorder Trends Business Times Markets Straits Times Business Section Korea Herald Business Section Seeking Alpha Market News Section KED Global Chipmakers Section Korea JoongAng Daily Business SectionFrom Right
No right-leaning sources found for this story.
Comments