The government is reportedly moving to enact a law to unify the control tower for nuclear power plant exports under Korea Electric Power Corporation. The current nuclear export system is split between KEPCO and Korea Hydro & Nuclear Power.
According to related industry sources on the 5th, the Ministry of Trade, Industry and Resources is pushing to enact a tentatively titled "Nuclear Power Export Promotion Act" within the year. The bill aims to legally define export frameworks and operating plans for state-run nuclear companies to strengthen competitiveness in the global bidding market.
This legislation was prompted by an overseas "family feud" between KEPCO and KHNP over settling additional construction costs for the Barakah nuclear plant in the United Arab Emirates (UAE). The Barakah plant was the first nuclear project Korea won overseas in 2009. KEPCO served as the prime contractor, and KHNP handled commissioning and operational support.
Originally slated for completion in 2020, the project was delayed by about four years, incurring approximately 1.4 trillion won in additional construction costs. KHNP argues that KEPCO, as the prime contractor, should pay this expense, while KEPCO counters it can do so only after first receiving settlement from the UAE side.
The government has concluded that such conflict stems from the bifurcated nuclear export system split between KEPCO and KHNP, and has been reviewing unification of the export framework. Going forward, KEPCO, as the control tower for nuclear exports, is expected to handle the entire process of overseas nuclear exports, from business development and feasibility studies to negotiations with clients, bidding, and contract signing.
In actual contracts, KHNP will be designated a joint prime contractor. The step is meant to preempt disputes like the post-Barakah conflict over settling construction costs.
The bill will also include comprehensive support measures for domestic nuclear corporations. To revitalize the nuclear industry ecosystem, the government plans to support market development and information system establishment, provide financial support and government grants, and even pursue the creation of a separate fund. It will also prepare measures to cultivate specialized talent for nuclear exports, support product and technology development, and assist in obtaining global certifications.
An official at the Ministry of Trade and Industry (MOTI) said, "Plans to streamline the nuclear export system are still under review, and nothing has been finalized."