Korea Hydro & Nuclear Power has reportedly promised to purchase equipment worth 900 billion won per unit from the U.S. nuclear corporation Westinghouse and pay a technology fee of $175 million (approximately 240 billion won) while securing contracts for two nuclear power plants in the Czech Republic. These conditions will also apply when exporting nuclear power plants in the future. Additionally, it is said that there is a stipulation requiring U.S. validation of technology when exporting small modular reactors (SMRs).
Westinghouse, the main contractor responsible for the construction of the Gori Unit 1, Korea's first commercial nuclear power plant, has raised concerns since Korea Hydro & Nuclear Power began pushing for the contracts in the Czech Republic, claiming that 'Korea has stolen the original technology.' Korea Hydro & Nuclear Power had previously agreed to settle disputes with Westinghouse in January of this year.
According to the nuclear industry on the 18th, the 'global agreement' signed between Korea Hydro & Nuclear Power, Korea Electric Power Corporation, and Westinghouse in January contains these provisions. The contract period is reported to be 50 years.
When Korea Hydro & Nuclear Power secured the Barakah nuclear power plant in the United Arab Emirates (UAE) in 2009, it also purchased major components such as reactor coolant pumps and turbine equipment from Westinghouse. The costs Korea Hydro & Nuclear Power agreed to pay are included in the construction expenses and do not require additional payments to Westinghouse.
The total cost for the Dukovany nuclear power plant in the Czech Republic is 26 trillion won, with a royalty of 480 billion won (240 billion won × 2 units), which is about 1.8% of the total project cost. The Czech government plans to advance the construction of two nuclear power plants within the next five years, and Korea Hydro & Nuclear Power has been selected as a preferred negotiation partner for this project.
An industry official stated, 'If Korea Hydro & Nuclear Power had continued the intellectual property dispute with Westinghouse, securing the contracts would not have been easy,' and added, 'There are unavoidable aspects to purchasing goods or paying royalties in order to establish a partnership with the U.S.'
Westinghouse's demand for technology validation when using SMRs reflects its intent to confirm whether the technology was based on Westinghouse's original technology. Once development of the i-SMR, which is a Korean-type SMR, is completed, it will be submitted for review, but it is not a structure that requires review each time for export. If there are discrepancies in the validation results, a third-party organization in the U.S. can be selected to re-verify the technological independence.
A high-ranking official in the nuclear industry noted, 'Nuclear technology is so complex that it takes a very long time to determine whether a specific technology has been included or not. Rather than clarifying disputes with Westinghouse, it may be more advantageous to collaborate to expand the market.'
Following the disclosure of the contract details with Westinghouse, evaluations have been mixed. Some in the political sphere criticize it, questioning whether it might be 'a losing business deal.' Conversely, there has also been assessment that the agreement struck before U.S. President Donald Trump's inauguration has reduced uncertainty.
There are also evaluations suggesting that the U.S. is establishing a cooperative framework with Westinghouse in the global market as it pursues an expansion policy for nuclear power. Westinghouse holds patent and design technologies, while Korea excels in construction and operational know-how. If the U.S. constructs nuclear power plants domestically or secures projects in Europe, participation from domestic nuclear corporations will become possible.