SK Hynix and Samsung Electronics rejected a proposal from Korea Electric Power Corp. (KEPCO) to prepay 25 trillion won ($18.7 billion). This capital was intended to fund electricity infrastructure for new semiconductor manufacturing clusters. The chipmakers cited concerns regarding the massive upfront cost and uncertain long-term semiconductor demand.
SK Hynix shares fell 5.3% in Seoul trading on Monday following the announcement. KEPCO must now identify alternative funding sources to support South Korea’s expanding chip production and AI-related power requirements.
Broader market sentiment also pressured memory stocks during the session. Analysts attributed the selloff partly to calls from AI industry leaders for a slower pace of technological development.