Samsung and SK hynix Reject KEPCO's Proposal to Prepay 5 Years of Electricity Bills

Samsung Electronics Co. and SK hynix Inc. declined a proposal from Korea Electric Power Corp. (KEPCO) to prepay five years of electricity bills. KEPCO proposed that Samsung pay 20 trillion won ($14.8 billion) and SK hynix pay 5 trillion won, based on their 2025 payments. The rejection underscores the financial strain on KEPCO and the reluctance of major corporations to commit to long-term prepayments. The proposal was reportedly part of KEPCO's efforts to stabilize its financial position amid rising debt. However, the chipmakers, which are major electricity consumers, viewed the prepayment requirement as burdensome. The rejection may lead to further negotiations or policy adjustments by KEPCO to address the concerns of key industrial players.