Samsung Electronics and SK Hynix Reject Korea Electric Power Corporation's Advance Payment Electricity Fee Proposal

According to foreign media reports, Samsung Electronics and SK Hynix have rejected an advance electricity payment proposal from the Korea Electric Power Corporation, which originally required the two companies to prepay electricity fees to fund grid construction for supplying power to a new technology cluster. Cash-strapped utility companies across Asia are struggling to keep up with the growing demand from the semiconductor and artificial intelligence industries. The Korea Electric Power Corporation’s plan—estimated by local media at a total of 25 trillion Korean won, equivalent to five years’ worth of electricity bills—was intended to bypass this supply-demand mismatch. A spokesperson for the Korea Electric Power Corporation stated via text message: “The two companies ultimately rejected the proposal from the Korea Electric Power Corporation.” According to local media reports, the two chip manufacturers are concerned about uncertainties over whether the current semiconductor boom can continue for the next five years.