SK hynix and Samsung Electronics rejected Korea Electric Power Corp. (KEPCO)’s proposal to collect roughly five years of electricity payments in advance. The plan would have sought approximately 5 trillion won from SK hynix and 20 trillion won from Samsung, or about 25 trillion won combined, to support power-grid construction for semiconductor clusters and other advanced industrial complexes.
Samsung reportedly communicated its refusal through a vice president-level executive on September 9. The rejection by both companies was reported on September 14, 2026.
What SK hynix and Samsung were asked to prepay
The proposed arrangement covered roughly five years of electricity bills. SK hynix’s proposed contribution was approximately 5 trillion won, reportedly equivalent to about five years of its previous electricity payments. Samsung Electronics’ proposed contribution was approximately 20 trillion won.
| Company | Proposed prepayment | Approximate period | Intended infrastructure use |
| SK hynix | Approximately 5 trillion won | Roughly five years of electricity bills | Backbone-grid and power infrastructure for advanced industrial complexes, including semiconductor clusters in Yongin and the southwestern Honam region |
| Samsung Electronics | Approximately 20 trillion won | Roughly five years of electricity bills | Backbone-grid and power infrastructure for advanced industrial complexes, including semiconductor clusters in Yongin and the southwestern Honam region |
The scale is striking: the proposed 25 trillion won would have shifted a substantial part of the grid-financing burden directly to the two chipmakers that are expected to drive major new electricity demand in South Korea.
Why KEPCO wanted the money upfront
KEPCO proposed using the advance payments to finance national backbone-grid construction, transmission and related power infrastructure for advanced industrial complexes. The named semiconductor regions included Yongin and the southwestern Honam region.
That connection matters because semiconductor fabs are unusually power-intensive facilities. Their expansion depends not just on buildings and equipment, but also on a grid capable of supplying large industrial loads. KEPCO’s proposal was therefore designed as a financing route for infrastructure tied to South Korea’s semiconductor expansion—not as a standard electricity-billing arrangement already agreed by the companies.
Why the chipmakers declined
Reports attributed the decision to uncertainty about whether the current semiconductor and AI boom would continue for the full five-year period. In practical terms, the companies would have committed a very large amount of cash while the future strength and duration of demand remained uncertain.
KEPCO’s financial pressure
The rejected proposal also reveals the pressure on KEPCO to fund grid investment without relying entirely on additional borrowing. KEPCO’s reported total liabilities stood at 210.7 trillion won at the end of June 2026, while its daily interest expenses were approximately 11.5 billion won.
Advance payments from Samsung Electronics and SK hynix would have given the utility an additional financing route for infrastructure investment. With that route rejected, KEPCO was reported to remain reliant on existing resources and bond issuance.
