US Government Halts Korea Hydro & Nuclear Power's Czech Nuclear Plant Export

Korea Hydro & Nuclear Power (KHNP) reported the export of nuclear power plants to the Czech Republic to the U.S. government, but the report was rejected. There are concerns that nuclear power plant exports could be blocked unless an agreement is reached with Westinghouse, which is currently in litigation over the independent export possibility of the Korean-type nuclear power plant.

According to documents submitted by KHNP and Westinghouse to the U.S. District Court for the District of Columbia on the 4th (local time), KHNP submitted information related to the Czech nuclear power plant bid to the U.S. Department of Energy (DOE) on December 23 last year.

This relates to Title 10, Section 810 of the U.S. federal regulations, which designates certain nuclear power plant technologies as export-controlled items, requiring DOE approval or mandatory reporting when transferring them abroad. According to Section 810, the Czech Republic is one of the countries generally authorized by the U.S. for nuclear power plant exports. Accordingly, companies intending to export nuclear power plants only need to report to the DOE within 30 days of commencing related activities.

However, on January 19, the DOE sent a reply to KHNP stating that "reports under Section 810 must be submitted by a U.S. person (or U.S. corporation)," and thus rejected the report.

This is interpreted to mean that the obligation to comply with U.S. export controls lies with U.S. companies that take U.S. technology outside the United States, so KHNP, a Korean company, is not the appropriate party to submit the report. KHNP now faces a situation where it must report jointly with Westinghouse.

In response, KHNP shared this development in a letter sent to Westinghouse on February 10, expressing readiness to discuss their respective positions and believing that a mutually satisfactory solution will be reached.

Meanwhile, KHNP and Westinghouse are currently in litigation over the primary developer of the Korean-type nuclear power plant technology.

KHNP states that although it received assistance from Westinghouse in the early stages of nuclear power plant development, the model intended for export to the Czech Republic was independently developed and is therefore not subject to U.S. export controls.

On the other hand, Westinghouse argues that since the Korean-type nuclear power plant technology was exported to Korea by Westinghouse with U.S. government approval, U.S. export controls also apply when Korea transfers that technology to a third country.

In a letter sent to the DOE, KHNP reaffirmed its position but stated that it submitted information on the Czech nuclear power plant export considering the long-standing friendly relations between the two governments and their shared interests in nuclear non-proliferation.