Hwang Ju-ho, president of Korea Hydro & Nuclear Power, said regarding the controversy over entering into a contract that includes paying royalties to the U.S. nuclear corporation Westinghouse for 50 years in the process of securing the Czech Dukovany Nuclear Power Plant project, "From an accepting standpoint, I think it cannot be deemed legitimate. However, we consider that we can endure that level and still make a profit."
President Hwang appeared before the Trade, Industry, Energy, SMEs, and Startups Committee of the National Assembly on the 19th and responded to a question from Seo Wang-jin, a member of the Rebuilding Korea Party, who stated that "evaluations suggest that there was a rush to finalize the nuclear power plant contract with the Czech side, leading to a hasty and unfair agreement with Westinghouse." Hwang's remarks, while not satisfied with the results of the intellectual property negotiations with Westinghouse, are interpreted as indicating that profits can be made in future nuclear power export processes based on it.
Seo pointed out, "(KHNP) claimed to the media and at the committee that there was no major problem in exporting (nuclear power plants) because we had completed 100% technology independence, but the results of this agreement indicate that we have to pay licensing expenses, which acknowledges that the core technology lies with Westinghouse, rendering it ineffective for exporting nuclear power plants."
President Hwang stated, "There was never a claim from the start that it was '100% our technology.' However, I think it is indeed wrong if some in the nuclear power industry promoted that in such a way that confusion arose, even if I did not do so."
When asked about the differences between the project content initially set when securing the Czech nuclear power plant and the changes after entering into an agreement with Westinghouse, President Hwang said, "When looking at the aggregates and dividing them by percentages, it seems that a large portion goes to Westinghouse, but Westinghouse has no supply chain." He added, "In a structure where there is no supply chain on one side, even if they take a portion, they will eventually have to rely on the side with the supply chain." This implies that Westinghouse, not having a separate plant, could delegate the supply of related parts to South Korean nuclear power companies.
However, President Hwang did not confirm the details of the agreements reported by the media, citing confidentiality clauses. He said, "If the committee provides an exit such as a resolution, I will explain accurately."
Westinghouse filed an intellectual property lawsuit, claiming that the latest Korean-type nuclear power plant APR100 was based on its core technology when the Czech government selected KHNP as the preferred negotiator for the construction of Units 5 and 6 of the Dukovany nuclear power plant last July. Consequently, the Czech government postponed the contract with KHNP. Ultimately, KHNP and Westinghouse agreed in January to resolve the intellectual property dispute. However, due to a confidentiality agreement, both sides did not disclose the terms, but some details have been revealed through the media this time.
According to the disclosed contents, every time a nuclear power plant is exported over the next 50 years, a purchase contract worth $650 million (about 900 billion won) will be signed with Westinghouse, and a technology usage fee of $175 million (about 240 billion won) for each plant will be paid. It is also reported that when developing and exporting small modular reactors (SMRs), it must pass verification to ensure that Westinghouse's technology is not applied.