KEPCO has proposed that Samsung Electronics and SK Hynix prepay 25 trillion Korean won in electricity fees for the next five years and is currently negotiating detailed terms, including interest rates, a source confirmed on the 2nd. The plan aims to secure funds for building power grids for the Yongin and Honam semiconductor clusters by advancing future electricity payments. With debt exceeding 210 trillion Korean won, KEPCO seeks to secure investment funds without increasing corporate bond issuance, while the two companies would receive timely power supply for new factories and earn interest higher than government bond rates. According to internal KEPCO documents obtained by this newspaper, KEPCO recently proposed that Samsung Electronics prepay 20 trillion Korean won and SK Hynix prepay 5 trillion Korean won. The amounts were calculated based on the electricity fees paid by the two companies last year (4.1 trillion Korean won for Samsung Electronics and 900 billion Korean won for SK Hynix) for the five-year period from 2027 to 2031. If the companies pay approximately 2 trillion Korean won monthly over about 12 months, KEPCO would deduct monthly electricity fees from the prepayment and pay interest on the remaining balance every six months. Interest could be provided by reducing future electricity fees instead of cash payments. This proposal aligns with the Lee Jae Myung government's push for the 'three mega projects': the Yongin and Honam semiconductor clusters and AI data centers. KEPCO held meetings with the Ministry of Finance and Economy, Samsung Electronics, and SK Hynix on July 3, four days after the mega projects were announced, and submitted proposals to the companies on July 9. On July 31, Kim Dong-cheol, KEPCO president, met directly with Kim Yong-kwan, Samsung Electronics DS Division head of management strategy, to discuss the prepayment system and semiconductor power grid construction. The plan was reportedly shared with Cheong Wa Dae around the same time. On August 11, working-level teams from both companies discussed details such as prepayment scale and interest rates. KEPCO's unusual proposal stems from difficulties in accelerating power grid construction due to massive debt, despite surging electricity demand. Samsung Electronics and SK Hynix are positively reviewing the proposal, as it increases the likelihood of timely power supply for their respective Yongin and Honam clusters. KEPCO proposed an interest rate for Samsung Electronics higher than the two-year government bond rate but lower than or similar to its own two-year corporate bond rate. Discussions are ongoing to guarantee an interest rate 0.15 percentage points higher than the two-year government bond rate. SK Hynix is understood to have requested the same terms as Samsung Electronics.   (ICE SEOUL)

Fonte notizia: The Chosun Daily