Kang Hoon-sik Orders Ministry of Trade to Investigate
Kang Responds to Kim Jong Un's Criticism of UFS: "A Repeated Response"
Presidential Office spokesperson Kang Yoo-jung announced that the office has ordered the government to investigate the facts regarding media reports that Korea Hydro & Nuclear Power (KHNP) and Korea Electric Power Corporation (KEPCO) accepted unfair demands from the US company Westinghouse in order to export nuclear power plants to the Czech Republic.
On the 18th, during a briefing at the Yongsan Presidential Office, spokesperson Kang stated, "Chief of Staff Kang Hoon-sik instructed the Ministry of Trade, Industry and Energy during a morning meeting to investigate the facts, including the content of the reports, and to submit a report." She added, "He also directed that public concerns about the export of nuclear power plants to the Czech Republic be addressed."
Spokesperson Kang further explained, "During the morning inspection meeting, it was decided to investigate whether the process by which KEPCO and KHNP, as public institutions, negotiated and signed contracts with Westinghouse was conducted in accordance with laws and regulations, and whether all principles and procedures were observed."
In line with the Presidential Office’s directive, an investigation is expected to be carried out into whether there were any legal issues in the process of exporting nuclear power plants to the Czech Republic. Previously, it was reported that in January, KHNP and KEPCO signed a global agreement that included a condition requiring Korean companies to pass Westinghouse’s technology independence verification in order to export next-generation nuclear power plants.
The agreement reportedly also included provisions requiring KHNP and KEPCO to sign procurement contracts with Westinghouse worth $650 million per unit for goods and services, and to pay $175 million per unit in technology usage fees when exporting nuclear power plants. The agreement was reached during the final contract process for winning orders for two new Dukovany nuclear power units in the Czech Republic.
Meanwhile, spokesperson Kang commented on North Korean State Affairs Commission Chairman Kim Jong Un’s criticism of the South Korea-US joint exercise Ulchi Freedom Shield (UFS) as "the most hostile and confrontational," saying, "This is a response that is repeatedly made." She added, "Our position regarding the Ulchi exercise is always that it is a defensive drill."
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