KEPCO Proposes $20 Billion Advance Payment Scheme for Grid Expansion

The state-run utility Korea Electric Power Corp (KEPCO) has proposed an advance payment scheme targeting major power users to fund the expansion of South Korea's national electrical grid. According to an internal document reported by the Chosun Ilbo, the utility proposed that Samsung Electronics pay 20 trillion won ($15 billion) and SK Hynix pay 5 trillion won in advance for power through 2031.

KEPCO intends to use these funds to construct transmission and substation networks specifically designed for AI data centers and semiconductor fabrication plants. This strategy aims to ensure a timely power supply for new factories. In exchange for the advance payments, the utility would pay the companies interest exceeding the yield on two-year Korean government bonds.

KEPCO stated that specific participation terms, including payment amounts, interest rates, and periods, have not yet been finalized. Samsung Electronics and SK Hynix have not provided immediate comments on the proposal.