Korea Electric Power Corporation (KEPCO) President Kim Dong-cheol stated that 20 percent of the financial resources for supplying electricity to the first phase of the Honam semiconductor cluster will be covered by KEPCO, while the remaining 80 percent will be borne by companies such as Samsung and SK Hynix.

Responding to a query from People Power Party lawmaker Kim Do-eup during the parliamentary audit by the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee today (October 12), President Kim said, "KEPCO's share is less than 20 percent," adding, "Samsung and SK Hynix are set to shoulder the rest."

President Kim revealed that the total cost for the first-phase power supply facilities amounts to 1.4 trillion won.

In response to a follow-up question from People Power Party lawmaker Cho Ji-young asking whether it is correct for end-users Samsung and SK Hynix to bear 80 percent of this cost, he answered, "Yes."

However, the Special Act on Semiconductors stipulates that the central government and local governments can cover 50 to 100 percent of the total project costs for establishing and operating industrial infrastructure required for clusters.

Regarding this, President Kim explained, "That would apply if the state provides support, but in the absence of support under the Special Act on Semiconductors, KEPCO, Samsung, and SK Hynix will share the burden according to their electricity usage ratios."

Meanwhile, KEPCO officials previously mentioned the "bond-to-equity ratio" as the reason for proposing that Samsung and SK Hynix prepay 25 trillion won in electricity bills.

Kim Jae-goon, KEPCO's Vice President for Power Grid, explained, "Our current bond-to-equity ratio is 5 times, but we need to reduce it to 2 times by the end of 2027," adding, "We proposed this to resolve the issue on our own."

President Kim also remarked, "It is true that maintaining the bond issuance multiple within 2 times is the biggest challenge from KEPCO's perspective."

President Kim added that there had been policy proposals and bill drafting by Democratic Party of Korea lawmaker Park Jeong, and that KEPCO designed and proposed the prepayment plan to Samsung and SK Hynix.

(Photo: Yonhap News)