Samsung, SK Hynix Reject $18B Grid Prepayment

Samsung Electronics and SK hynix have rejected Korea Electric Power Corp.’s proposal that they prepay a combined 25 trillion won ($18 billion) for five years of electricity, citing concerns about locking up cash amid an uncertain semiconductor outlook and the need to fund factories and research. KEPCO wanted Samsung to contribute about 20 trillion won and SK hynix about 5 trillion won, with the money directed toward grid expansions serving semiconductor clusters and AI data centers. The rejection complicates KEPCO’s effort to finance rapidly rising infrastructure costs without issuing additional bonds or relying on higher electricity rates. Analysts say the utility may face greater borrowing pressure because its projected operating cash flow is roughly comparable to its capital spending, while its liabilities and interest costs remain substantial.