KEPCO to Supply 3GW to 'Honam Semiconductor' from 2029... Plans to Build Two Substations

Power Supply Agreement for the Honam and Yongin Semiconductor Mega Projects
Establishing the Implementation Framework for Electricity Provision

Korea Electric Power Corporation (KEPCO) has announced that it will prioritize supplying 3GW of electricity to the Honam semiconductor plant starting in 2029. Subsequently, with additional facility construction, KEPCO plans to supply more than a cumulative 6GW of power to industrial complexes in the Honam region.

On August 12, at the Gyeongin Construction Headquarters, KEPCO held the 'Honam Region and Yongin Semiconductor Mega Project Power Supply Agreement Ceremony' and signed an agreement for the timely supply of electricity to semiconductor industrial complexes. The agreement ceremony was attended by the Ministry of Climate and Energy Environment, Jeonnam-Gwangju Metropolitan City, Samsung Electronics, and SK hynix.

Kim Dongchul, President of Korea Electric Power Corporation (KEPCO), is delivering a greeting at the 'Honam Region and Yongin Semiconductor Mega Project Power Supply Agreement Ceremony'. KEPCO

A KEPCO official explained, "With this, the foundation has been laid for the implementation of timely power supply to the Honam regional industrial complex and the Yongin national and general industrial complexes, which are key agendas of the 'Three Major Mega Projects for Korea's Great Leap Forward' announced on June 29." The official also stated, "According to the agreement, all participating institutions will pool their respective capabilities to ensure timely electricity supply."

In particular, Jeonnam-Gwangju Metropolitan City, which participated in the power supply agreement for the Honam Region semiconductor industrial complex, has agreed to actively cooperate to ensure that the permits and approvals required for establishing electrical power supply facilities can be processed swiftly.

The Honam region's industrial complex is expected to require electricity demand of over 6GW. Considering the timelines needed by companies, KEPCO plans to initially supply about 3GW through the initial power supply facilities starting from 2029, and then provide more than a cumulative 6GW to the Honam region after additional facilities are established. For the power supply to the Honam region, KEPCO will first pursue a plan to branch off from the Shinjangseong-Shingwangju transmission line and connect it to the industrial complex. Additional transmission lines will be further specified through detailed technical assessments and consultation with companies and relevant institutions. For substations, one will be constructed first within the complex, followed by the establishment of an additional substation in the future. The costs for initial power supply facilities will be shared by the public and private sectors in proportion to their respective usage rates. For part of the private sector's contribution, the government plans to secure national financial support by consulting with relevant ministries in accordance with the 'Special Act on Semiconductors,' which took effect on August 11.

The Yongin national and general industrial complexes set goals, through the announcement of the Three Major Mega Projects, to accelerate the completion of final fabs by 7 years and 12 years respectively and to double memory production capacity within 5 years. As a result, this agreement modifies and supplements part of the power supply agreement signed for the Yongin general industrial complex in November 2024, and newly establishes a power supply agreement for the second phase of the Yongin national industrial complex to strengthen the timely supply system.

In fact, from July 2026, when electricity supply starts for the Yongin general industrial complex, a large-scale power demand totaling more than 14GW is expected for the Yongin national and general complexes by 2041. In the case of the Yongin national industrial complex, electricity will be supplied progressively to a total of six fabs by 2041. In the first phase, by 2032, the initial demand will be met through the use of short-distance lines near the complex and three 1GW liquefied natural gas (LNG) power plants within the complex, which will replace old coal power plants. In the second phase, by 2035, the plan is to increase the capacity of existing lines to keep up with rising demand. Ultimately, KEPCO plans to build transmission lines linking the East Coast and central regions' power generation. Details will be finalized through technical reviews and consultations with companies and related organizations.

For the Yongin general industrial complex, electricity will first be supplied through transmission lines connecting the newly completed Shinanseong Substation (operational as of July 2026) to the Dongyongin Substation, then early construction of lines near the complex will take place in 2031 and 2032.

Kim Seonghwan, Minister of the Ministry of Climate, stated, "With this agreement, the foundation has been laid for the timely supply of electricity to the Honam region and Yongin Semiconductor Mega Projects, which is critical to the competitiveness of the semiconductor industry." He emphasized, "Now is the time for practical action, and both the public and private sectors, as one team, will complete the power supply system to support Korea's irreplaceable advancement."

Kim Dongchul, President of KEPCO, said, "As the organization responsible for the national power infrastructure, KEPCO will focus all capabilities to supply electricity in a timely manner in response to increasing power demand from companies. Through today's agreement, we will actively support the strengthening of Korea's semiconductor industry competitiveness," he said.

This content was produced with the assistance of AI translation services.