[2026 Parliamentary Audit] Proposal for advance electricity bill payments criticized as "arm-twisting companies"... KEPCO: "Due to bond issuance limit"

At the Oct. 12 parliamentary audit by the Trade, Industry, Energy, SMEs and Startups Committee
KEPCO President Kim Dongcheol: "KEPCO to cover 20% of Honam semiconductor power grid costs... Samsung Electronics and SK hynix to cover 80%"

Korea Electric Power Corporation (KEPCO) said on Oct. 12 that it had proposed that Samsung Electronics and SK hynix pay 25 trillion won in electricity bills in advance in connection with power grid construction for a semiconductor industrial complex in Honam because "it needs to reduce its bond issuance limit."

At a parliamentary audit of KEPCO and other agencies affiliated with the Ministry of Trade, Industry and Energy, held that day by the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee, People Power Party lawmaker Kim Do-eup asked, "KEPCO proposed that Samsung Electronics and SK hynix pay their electricity bills in advance, but the companies rejected the proposal. What was the reason for making it?"

Korea Electric Power Corporation President Kim Dongcheol answers lawmakers' questions during a parliamentary audit of the Korea Trade-Investment Promotion Agency and other organizations at the National Assembly on Oct. 12, 2026. Photo by Yoon Dongju

KEPCO had previously proposed that Samsung Electronics and SK hynix pay 25 trillion won in advance, equivalent to five years' worth of electricity bills. The proposal was intended to secure funds needed to build the power grid for the Honam semiconductor industrial complex, but fell through after the companies rejected it.

In response, Kim Jaegun, KEPCO's executive vice president and head of the Power System Division, explained, "KEPCO's current bond issuance limit is five times its paid-in capital and reserves combined, but it must be reduced to two times that amount or less by the end of 2027. If we receive more than 20 trillion won in advance, we will stay within that limit, so we proposed advance payment of electricity bills to resolve the issue ourselves."

That day, Kim Do-eup pointed out that KEPCO would cover less than 20% of the funding for supplying power to the first phase of the Honam semiconductor cluster. The cost of building the power supply network for the first phase is approximately 1.4 trillion won.

In response, KEPCO President Kim Dongcheol said, "Because these are dedicated lines for Samsung Electronics and SK hynix, the users are responsible for the costs. If the state provides support, the costs will be divided that way, with Samsung Electronics and SK hynix covering 80%. If there is no support under the Special Act on Semiconductors, KEPCO, Samsung Electronics and SK hynix will share the costs according to their respective proportions of electricity use."

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