Samsung, SK Hynix reject KEPCO's $19 billion power prepayment proposal, document shows

Business Recorder reported that Samsung Electronics and SK Hynix have turned down a proposal from Korea Electric Power Corp, known as KEPCO, for a 25 trillion won advance payment, roughly $18.7 billion. The payment was intended to secure electricity for upcoming semiconductor complexes. A document given to a lawmaker showed the chipmakers told the state-run utility that accepting it would be hard after internal evaluations.

The companies reportedly questioned whether such large prepayments were needed, pointing to uncertainty about how long chip demand would last, a company official told Reuters while speaking anonymously. Neither company would comment on the matter. Chosun Ilbo had earlier reported that KEPCO sought the money for electricity expected to be used by new chip fabrication plants, so the utility could invest in infrastructure.