Kepco seeks 25 trillion won prepaid from Samsung and SK hynix to ease debt

Korea Electric Power Corp. carries more than 200 trillion won in liabilities as South Korea prepares power-intensive semiconductor zones. To finance an estimated 100 trillion won grid expansion, Kepco has proposed that Samsung Electronics and SK hynix each prepay five years of electricity usage, amounting to a combined 25 trillion won. The figures reflect each firm's electricity purchases last year—4.1 trillion won for Samsung and 900 billion won for SK hynix.

Kepco would deduct monthly charges from the prepaid balances and offer an interest rate slightly above two-year Korean government bonds, with a reported premium of 0.15 percentage points for Samsung. The utility stresses that the offer is pending and carries no set response deadline. While the prepayment could temporarily ease Kepco's financing constraints, it does not solve the underlying issue of low electricity tariffs and the looming bond-issuance ceiling that expires at the end of 2027.