The governments of South Korea and the United States have signed a Memorandum of Understanding (MOU) for joint entry into the global nuclear power market. The MOU establishes a framework for information sharing when transferring private nuclear technology to a third country, which is key to enhancing export control cooperation between the two countries. With the establishment of the South Korea-U.S. nuclear cooperation system ahead of the final contract for the 'Czech nuclear power plant construction' scheduled for March, it is expected that the conflict between Korea Hydro and Nuclear Power Corporation and the American Westinghouse will soon come to an end. Currently, Korea Hydro and Nuclear Power Corporation and Westinghouse are preparing a final agreement related to a legal dispute over nuclear technology and are reported to be planning to announce it soon.
On the 8th, South Korea's Ministry of Trade, Industry and Energy and Ministry of Foreign Affairs officially signed an MOU with the U.S. Department of Energy and Department of State regarding 'principles for South Korea-U.S. nuclear power export and cooperation' in Washington, D.C. The two countries had pre-signed the agreement last November. They noted, 'The South Korea-U.S. partnership has cooperated in the civilian nuclear sector for over 70 years,' adding that 'the foundation of this cooperation reflects both countries' mutual commitment to maximizing peaceful use according to the highest standards of nuclear safety, security, safeguards, and non-proliferation.'
The signing of the MOU for nuclear cooperation between the two countries took place amid ongoing disputes between Korea Hydro and Nuclear Power Corporation and the U.S. nuclear company Westinghouse regarding South Korea's export of the Czech nuclear power plant. Westinghouse filed a lawsuit against Korea Hydro and Nuclear Power Corporation in a U.S. court in October 2022, claiming that its proprietary technology was applied to South Korean nuclear power plants.
This dispute has also hampered Korea Hydro and Nuclear Power Corporation's consortium from entering the Czech market. The consortium, which includes Korea Hydro and Nuclear Power Corporation, Doosan Enerbility, and Daewoo Engineering & Construction, was selected as the preferred negotiator for the Czech nuclear power plant construction project valued at over 24 trillion won last July and is approaching the final contract in March. Westinghouse had raised objections, claiming that its technology was incorporated into South Korea's nuclear technology.
However, with the signing of the MOU, the U.S. government's agreement on the export of the Czech nuclear power plant has made discussions with Westinghouse much smoother.
In the meantime, it has been reported that recent discussions between Korea Hydro and Nuclear Power Corporation and Westinghouse have reached a positive atmosphere, finding a point of agreement. A representative from Korea Hydro and Nuclear Power Corporation said, 'The negotiations between both sides are still ongoing,' adding that 'we are at a stage of heading toward a positive agreement.'
Industry observers speculate that Korea Hydro and Nuclear Power Corporation is seeking an agreement that involves paying Westinghouse hundreds of billions in royalties or work and jointly pursuing nuclear power exports to other third countries in the future.
There are also discussions about role-sharing, where Korea will take the lead in entering markets in Europe and the Middle East. It has been reported that plans are being considered for our nuclear-related corporations, such as domestic construction firms and equipment manufacturers, to accompany Westinghouse in constructing nuclear plants in Europe.
A Ministry of Trade, Industry and Energy official stated, 'This MOU signing will contribute to promoting mutually beneficial cooperation between the two countries in the global market based on deep trust as a 'global comprehensive strategic alliance.'