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South Korea utility proposes Samsung pays $15 billion in advance for power, paper says

SEOUL, Sept 3 (Reuters) - ⁠Korea Electric Power Corp (KEPCO) has proposed Samsung ⁠Electronics pay 20 trillion won ($15 billion) in advance ‌for power through to 2031 to help fund the expansion of its grid, the Chosun Ilbo reported on Thursday.

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The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji

SEOUL, Sept 3 (Reuters) - ⁠Korea Electric Power Corp (KEPCO) has proposed Samsung ⁠Electronics pay 20 trillion won ($15 billion) in advance ‌for power through to 2031 to help fund the expansion of its grid, the Chosun Ilbo reported on Thursday.

It has ​also proposed that SK Hynix ⁠pay 5 trillion won ⁠in advance, the newspaper said, citing an internal KEPCO ⁠document.

Here ‌are some details:

• State-run KEPCO, South Korea's main utility, said in a statement ⁠it had suggested an advance payment scheme ​to major ‌power users including Samsung and SK Hynix, but ⁠that participation, ​interest rates, payment amounts and payment periods had not been finalised.

• Samsung did not have immediate comment. ⁠SK Hynix did not immediately respond ​to a request for comment.

• KEPCO said the proposed arrangement was intended to help meet rising investment ⁠needs from semiconductor and AI data centre projects, while providing companies with more certainty over timely power supply for new factories.

• The utility would use ​the funds to build transmission ⁠and substation networks for chip fabs, while paying the ​companies interest above the yield ‌on 2-year Korean government bonds, ​according to the Chosun report.

($1 = 1,358.6800 won)

(Reporting by Joyce Lee; Editing by Edwina Gibbs)

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