Samsung, SK Hynix reject KEPCO's $19 billion power prepayment proposal, document shows

SEOUL, Sept 14 (Reuters) - ‌Samsung Electronics ​and ​SK Hynix have rejected a proposal by Korea Electric Power Corp ‌to make a 25 trillion won ($18.7 billion) ⁠upfront payment to support power supplies for planned ‌semiconductor mega clusters, according to ‌a document submitted to a lawmaker. Here are some details:

• The two chipmakers told the ​state-run utility company it would be difficult to accept the proposal following internal ⁠reviews, according to the document, which was shared with Reuters ​by the office of lawmaker Lee Chul-gyu.

• The companies were unsure if such ​large upfront payments were necessary, ‌citing uncertainty over the long-term durability of semiconductor demand, a company ⁠official in Seoul told Reuters. The official spoke on condition of anonymity due to the ⁠sensitivity of the matter.

• Samsung Electronics and SK Hynix ​declined to comment.

• South Korean newspaper Chosun Ilbo reported earlier this month that KEPCO had proposed that ‌the chipmakers make the advance payment for electricity expected to be consumed ‌by new chip fabrication plants, in order ⁠to allow the ‌utility company to ​invest in infrastructure to power the plants.

(Reporting by Heejin KimEditing by Ed ‌Davies)

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