KEPCO proposes ₩25 trillion advance payment from Samsung, SK hynix

Korea Electric Power (KEPCO, KRX:015760) proposed that Samsung Electronics and SK hynix prepay five years of electricity charges in lump sums to fund mega-projects including high-voltage transmission infrastructure for data centres, the company said Wednesday. The proposal could generate ₩25 trillion upfront: ₩20 trillion from Samsung and ₩5 trillion from SK hynix based on their recent power consumption.

KEPCO framed prepayment as a financing tool for both utilities and industrial users. The firms would receive effective interest rates below market, while KEPCO gains working capital for distribution network upgrades required to serve AI data-centre power demand.

KEPCO's market capitalisation was ₩20.8 trillion at Thursday's close. First-half 2026 operating income of ₩2.1 trillion swung from a ₩1.9 trillion loss a year earlier on higher electricity prices and lower coal costs. Debt stood at ₩240 trillion, limiting KEPCO's capacity for large capex without rate increases.

Similar advance-payment schemes have appeared in other utilities-heavy economies where industrial users have strong balance sheets and long-term power demands.

Sources

  1. Newsis
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