The Korea Electric Power Corporation (KEPCO) will bear about 20% of the costs for the first phase of power supply to the Honam semiconductor cluster if there is no support from the Special Semiconductor Act.
During a National Assembly audit on October 12, KEPCO President Kim Dong-cheol responded to a question from ruling party lawmaker Kim Do-eup regarding the budget for transmission facilities, stating, "KEPCO's share is less than 20%, and Samsung and SK Hynix will cover the rest."
According to Kim, the total cost for the first phase of power supply facilities is 1.4 trillion won. When asked by lawmaker Jo Ji-yeon if it is correct that 80% of this cost would be borne by the actual users, Samsung and SK Hynix, he confirmed, "Yes."
However, the Special Semiconductor Act allows the government and local authorities to cover 50% to 100% of the costs for the necessary industrial infrastructure for the cluster. Kim explained, "If the government provides support, that will be the case, but without the support from the Special Semiconductor Act, KEPCO, Samsung, and SK Hynix will share the burden according to their power usage ratios."
Earlier, KEPCO proposed a prepayment of 25 trillion won in electricity fees to Samsung and SK Hynix, citing the need to address the 'debt ratio.' Kim Jae-gun, KEPCO's Vice President of Power Systems, elaborated, "Currently, the debt ratio is five times, and it needs to be reduced to two times by the end of 2027. This proposal was made to resolve the issue internally."
Kim also acknowledged, "From KEPCO's perspective, maintaining the debt issuance ratio within two times is indeed the biggest challenge."
* This article has been translated by AI.
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