Korea Electric Power Corporation proposed that Samsung Electronics and SK hynix prepay KRW 25 trillion in electricity bills for five years. As the U.S. Secretary of Commerce is reported to be pressuring companies by saying that targeted tariffs will be imposed on semiconductors unless they build factories in the United States, the external environment surrounding the semiconductor industry is becoming increasingly challenging.
Korea Electric Power Corporation proposed that Samsung Electronics and SK hynix prepay five years' worth of electricity bills equivalent to KRW 25 trillion, or approximately ¥2.9 trillion at current exchange rates. In addition, there is growing discussion of shifting the burden onto companies because of the difficulty of securing funding for the power transmission and distribution network.
The pressure from the United States suggests that tariffs could be imposed as a condition for building new semiconductor plants, and stakeholders, including local government officials, have pointed to the practical implications. The South Korean government has so far explained that supplies of electricity and water would be secured, but strained public finances and legal uncertainty are making investment decisions more difficult.
Debate over the implementation guidelines for the Yellow Envelope Act is also causing confusion at operating sites, while domestic and international pressure on the semiconductor industry is intensifying further. The South Korean government is being pressed to ensure policy consistency, and amid the dual burden of external pressure and domestic fiscal challenges, designing a framework to protect semiconductors as a national survival line is viewed as an urgent task.