Korea Electric Power Corp

Samsung Electronics shares fell 3.85% to 249,500 won in Seoul Monday as investors weighed a broad retreat in AI-linked stocks against a proposed electricity-infrastructure bill for Korea's next chip factories. Korea Electric Power proposed roughly 25 trillion won, or $18.7 billion, in advance payments from Samsung and rival SK Hynix to secure electricity for planned semiconductor mega-clusters, an arrangement both companies rejected, according to Reuters. Samsung is also preparing to introduce ASML's High-NA lithography into memory-chip manufacturing from 2028, underscoring its push at the advanced end of production. The company carries a GF Score of 92 out of 100, with strong profitability, growth, financial strength and momentum, while GF Value remains its clear weak spot. Rejecting the upfront demand preserves Samsung's financial flexibility today, but the underlying power requirement for the AI chip buildout remains unresolved.

Samsung Electronics and SK Hynix have turned down a proposal from Korea Electric Power Corp. that would have required the chipmakers to put up a combined 25T won, or $18.7B, in advance to help fund power infrastructure for their planned semiconductor clusters, Reuters reported. Under the proposal, Samsung Electronics would have paid about 20T won, while SK Hynix would have contributed roughly 5T won, with the money intended to speed up development of electricity infrastructure needed to support the companies' expanding chip operations. A company official said the firms were unsure whether such large upfront payments were necessary, given uncertainty over the long-term durability of semiconductor demand. South Korea faces rising power demand from semiconductor manufacturing and AI infrastructure, and the rejection leaves KEPCO to seek other ways to fund the required power infrastructure. Shares of Samsung Electronics fell 3.7%, while SK Hynix dropped 5.3% in Seoul on Monday.

Korea Electric Power Corp. reported a decline in second-quarter earnings. Net income attributable to shareholders of the parent company fell to KRW 267.31 billion from KRW 1.14 trillion a year earlier. Operating income decreased to KRW 1.13 trillion from KRW 2.14 trillion, while sales edged down to KRW 21.92 trillion from KRW 21.95 trillion.