This amount paid in advance for 5 years will be used to build power grids for semiconductor industrial clusters, of which Samsung and SK hynix are the two leading units.
According to Kepco's proposal, Samsung Electronics will pay 20 trillion won in advance, and SK hynix will pay 5 trillion won in advance. The two companies are considering this proposal, according to industry sources.
The proposed amount is calculated based on the assumption that the annual electricity bills of companies from 2027 to 2031 will be similar to 2025, when Samsung Electronics paid 4.1 trillion won for electricity and SK hynix paid 900 billion won.
Kepco's customers can prepay electricity bills and receive interest on that amount. However, the power company is considering introducing special terms allowing them to use the prepayment system to raise a large amount of capital.
According to sources, the state-owned power company has offered Samsung Electronics and SK hynix an interest rate higher than the interest rate of government bonds with a two-year term, along with discussions on a plan to pay interest by reducing electricity bills every six months instead of paying in cash.
Kepco confirmed that it had made the offer but said specific details - including whether the companies agreed or not, interest rates, amounts to be paid in advance and terms of payment - have not yet been completed.
According to Korea JoongAng Daily, the increasingly worsening financial situation of the power company is probably one of the reasons behind this proposal. As of the end of June, the company's debt amounted to 210.7 trillion won, and interest expenses alone amounted to about 11.5 billion won per day.
Prepayment may be a mutually beneficial agreement.
According to sources, Kepco plans to use advance funds from Samsung Electronics and SK hynix to finance the construction of power grids for semiconductor industrial clusters in Yongin, Gyeonggi and the Honam region, including Jeolla province and Gwangju city.
