Minister Kim Jung-kwan of the Ministry of Trade, Industry and Energy said that an "unthinkable situation is happening" regarding the dispute over construction costs between Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power Co. (KHNP) related to nuclear power plant exports.
On the 24th, at the National Assembly's Trade. Industry Energy. SMEs. and Startups Committee audit, the Minister said, "We are drawing up a plan on how to structure the governance between KEPCO and KHNP," and stated accordingly.
KEPCO and KHNP are currently undergoing arbitration at the London Court of International Arbitration (LCIA) over the settlement of additional construction costs of about 1 trillion won incurred during the construction of the Barakah nuclear plant in the United Arab Emirates (UAE).
Kim Dong-a, a lawmaker from the Democratic Party of Korea, pointed out that, as the two institutions submit related materials to a U.K.-based law firm and a consulting firm for the lawsuit, there is a risk that core nuclear power technology could be leaked externally. He criticized, "Because of a family feud that should not even have happened, national strategic assets are being handed over wholesale to foreign law firms and private consulting firms."
Kim also said, "Since exports proceed along two tracks, KEPCO and KHNP, disputes arise," and asked, "Does the Ministry of Trade and Industry (MOTI) have any plan to integrate the nuclear export system into a single structure?"
In response, the Minister said, "There has been much controversy around that issue, so we are putting things in order," adding, "We are considering whether a single method would be better and are drawing up a plan on how to structure the governance between KEPCO and KHNP."
He added, "In a way, this was an issue the Ministry of Trade and Industry (MOTI) should have resolved by exercising leadership, and we feel a sense of responsibility that KEPCO and KHNP have gone that far."
Meanwhile, the Barakah nuclear plant, which Korea won in 2009 under the Lee Myung-bak administration as its first overseas nuclear project, consists of four units, with a contract amount totaling about 22.6 trillion won. Since Unit 1 entered commercial operation in 2021, all units through Unit 4 began operation last year, and KEPCO, the main contractor, and the ordering party are currently proceeding with the final settlement process for overall completion. In this process, KEPCO, the parent company, and its subsidiary KHNP have engaged in a legal dispute over construction costs, sparking an unusual conflict.