Samsung Electronics and SK hynix of South Korea rejected KEPCO's proposal for upfront payment of a total ₩25 trillion in electricity charges. Companies expressed concerns about a plan to fund transmission-grid development through advance payments, making the time and cost sharing required to expand power infrastructure a challenge.
South Korean semiconductor giants Samsung Electronics and SK hynix said they could not accept KEPCO's proposal for upfront payment of a total ₩25 trillion in electricity charges. The plan called for advance payment equivalent to 5 years of electricity charges, with the funds earmarked for transmission-grid development.
KEPCO had proposed a "win-win" framework under which the upfront payment would be offset by interest exceeding the yield on 2-year government bonds, but both companies expressed reservations, citing funding constraints and uncertainty over long-term demand. It was also pointed out that KEPCO's total debt had reached ₩210.7 trillion and that its daily interest payments amounted to approximately ₩11.5 billion.
Government and business officials reportedly regard expanding transmission grids and power-generation facilities as an urgent priority in response to rising electricity demand driven by the surge in semiconductor and AI demand. They also said that developing the underlying infrastructure alongside major factory investment plans would be a challenge.
Against this backdrop, it was also suggested that how the government advances cost sharing for power infrastructure has emerged as a major challenge for South Korean industry.