Korea Electric Power Corp (KEPCO) has proposed an advance-payment plan to several of South Korea's biggest power consumers as a means to support funding for grid expansion, according to reporting that cited an internal company document.
Under the proposal, KEPCO suggested that Samsung Electronics make an upfront payment of 20 trillion won - roughly $15 billion - to cover electricity supply through 2031 and to contribute to financing upgrades to the transmission and distribution network. The same internal document reportedly recommended that SK Hynix pay 5 trillion won in advance.
KEPCO has publicly acknowledged it floated an advance payment program to major power users, including Samsung and SK Hynix. In a statement provided to Reuters, the state-run utility said the plan is at the proposal stage and that key parameters - participation, interest rates, payment amounts and payment periods - are still being discussed and have not been finalized.
The advance payment proposal is framed as a mechanism to support grid expansion funding. KEPCO described the idea as a suggestion directed at large corporate electricity consumers; it did not present finalized terms or confirm commitments from any companies.
Details in KEPCO's statement underline that the proposal remains under negotiation. The company said that participation by targeted firms is not yet determined and that interest rates, exact payment figures and the duration of any payment schedule were all still subject to further discussion.
Context and implications
The measures under discussion are presented by KEPCO as tools to secure funding for network development. While the proposal specifies large nominal amounts for Samsung and SK Hynix, KEPCO's confirmation emphasizes that the scheme is not closed and that its implementation would depend on subsequent agreement on terms and on whether the firms opt to participate.
KEPCO's outreach to major industrial electricity consumers reflects an approach to mobilize capital from large users to back infrastructure needs. Beyond the headline figures, the company has stressed that the advance-payment program's parameters are open and remain subject to negotiation.
Note: KEPCO confirmed it had suggested an advance payment program to major power users and stated that participation and the specifics of the program have not been finalized.