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Photo courtesy of KHNP |
[Alpha Biz= Kim Jisun] Korea Hydro & Nuclear Power (KHNP) and Korea Electric Power Corporation (KEPCO) are facing criticism over allegations that they signed an “unequal agreement” with U.S. nuclear company Westinghouse to secure a 26 trillion won ($20 billion) contract for the Dukovany Nuclear Power Plant project in the Czech Republic.
According to industry sources, the agreement—signed in January to resolve Westinghouse’s objections—includes clauses requiring Korean firms to purchase goods and services worth $650 million (about 900 billion won) and pay technology fees of $175 million (about 240 billion won) for every nuclear unit exported over the next 50 years. Even if Korea develops independent next-generation reactors such as small modular reactors (SMRs), the deal reportedly obligates them to undergo Westinghouse’s prior verification.
The controversy stems from last July, when KHNP was selected as the preferred bidder for the Dukovany Unit 5 and 6 projects. Soon after, Westinghouse filed a complaint with the Czech government, alleging Korea’s unauthorized use of U.S. technology. The Czech side subsequently delayed finalizing the contract. In January, KHNP and Westinghouse announced a settlement to “strengthen cooperation in the global nuclear market” and withdraw all legal actions—but the specific terms were not disclosed at the time.
Industry experts now warn that the hidden conditions could significantly undermine Korea’s long-term competitiveness in nuclear exports, potentially handing Westinghouse over 1 trillion won ($750 million) per unit regardless of Korean technological independence.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
