KHNP and Westinghouse Consider JV... New Opportunities Amid "Humiliating Contract" Controversy

US Design and Korean Construction Partnership Gains Traction
"Not Included as a Korea-US Summit Agenda"

The Korean-style nuclear power plant, which was embroiled in political controversy over the so-called "humiliating contract" during the Yoon Suk-yeol administration, is now entering a new phase. This comes as the government is considering a plan for Korea Hydro & Nuclear Power (KHNP) and the US company Westinghouse to establish a joint venture (JV) to enter the US market.

According to sources in the ruling party and the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee on August 20, the Korean government is reviewing a proposal to suggest a joint investment in the US nuclear power market between KHNP and Westinghouse to the US side.

If the joint venture is established, KHNP will secure a foothold for stable entry into the US market, where up to 300 new nuclear power plants are planned for construction in the future. Although the US has set out large-scale nuclear construction plans for the mid- to long-term, Westinghouse, while possessing core technology, lacks construction experience. In fact, since the Three Mile Island accident in 1979, new nuclear plant construction in the US has been halted, leading to a loss of capability. Most recently, the construction of the Vogtle Units 3 and 4 in Georgia faced delays and soaring costs, exposing these limitations.

Industry experts have commented, "Due to the lack of construction experience in the US, the combination of US design and Korean construction has frequently appeared in the global market," and added, "With US-China tensions intensifying, Korean nuclear technology could attract even more attention in the US market."

There is also speculation that the establishment of a JV between the two companies could be included as an agenda item at a Korea-US summit. However, KHNP denied this, stating, "Cooperation between Korea Hydro & Nuclear Power and Westinghouse is a matter to be discussed between the two companies, and it is not included as a bilateral government cooperation agenda."

Meanwhile, in January, KHNP and Korea Electric Power Corporation (KEPCO) signed a "global agreement" with Westinghouse to resolve intellectual property disputes. The agreement stipulates that even if Korea independently develops and exports next-generation nuclear power plants such as Small Modular Reactors (SMRs), they must be verified by Westinghouse, and a technology usage fee of about $175 million (approximately 240 billion KRW) per reactor must be paid. This sparked controversy over the so-called "humiliating contract."