The government is speeding up an overhaul of the nuclear power export framework, which is currently split between Korea Electric Power Corporation and Korea Hydro & Nuclear Power Co. (KHNP).
According to the government on the 18th, the Ministry of Trade, Industry and Resources had planned to complete a research project related to the nuclear export framework in the first half of this year, but is reviewing moving up the timeline to within the first quarter. The overhaul plan is expected to be decided in one of three directions: ▲ establishing an independent third institution ▲ consolidating the export window under KEPCO or KHNP ▲ division by function (maintaining the status quo).
In this regard, KEPCO was said to have expressed the view at a Ministry of Trade and Industry (MOTI) public institution briefing on the 8th that the current dual structure should be maintained. Under the approach, KEPCO would handle marketing and financing, and KHNP would take charge of construction and operations. The intent is to leverage each institution's strengths and collaborate. Conversely, KHNP believes it should hold the lead, as it carries out construction and operations, the core of the nuclear business.
In the past, KEPCO was solely responsible for nuclear exports, but since 2016 KEPCO and KHNP have divided markets by region. In regions like the United States, where the Korean standard reactor can be used as is, KEPCO is in charge; in regions like the Czech Republic, where design changes are required, KHNP is responsible. Because of this, there have been criticisms that overheated bidding competition has caused confusion during negotiations with overseas clients.
MOTI is accelerating the overhaul of the nuclear export framework as cooperation on nuclear projects between the two countries comes into focus through U.S.-Korea tariff talks. In Dec., Howard Lutnick, U.S. Commerce Minister, said that part of Korea's pledged investment in the United States would be used for nuclear plant construction in the country.
MOTI is expected to negotiate with KEPCO and KHNP and draw a final agreement as soon as the research results are available.