Samsung and SK Hynix Reject Kepco Power Funding Plan

Korea Electric Power Corp. proposed a 25 trillion won ($18 billion) plan requiring semiconductor manufacturers to pay for electricity in advance to fund the construction of power grids for new technology clusters. The state-owned utility sought the prepayment to reduce its reliance on bond issuance and address the difficulty of meeting rising energy demands driven by the artificial intelligence and semiconductor industries.

Samsung Electronics Co. and SK Hynix Inc. rejected the proposal. Under the terms, the chipmakers would have paid the sum over approximately one year, with the utility paying interest on the remaining balances. The companies declined the arrangement due to uncertainty regarding whether the current semiconductor boom will persist over the next five years.