[2025 Audit] Minister Kim Jeong-Kag: "Conflict Between KEPCO and KHNP Is Unacceptable"

Conflict Over Settlement of 1 Trillion Won in Barakah Nuclear Plant Construction Costs
Need for Governance Reform Highlighted

Kim Jeong-Kag, Minister of Trade, Industry and Energy, is responding to lawmakers' questions at the National Assembly's Industry, Trade, Energy, Small and Medium Business Committee's audit held in Yeouido, Seoul on October 24, 2025. Photo by Kim Hyunmin

Kim Jeong-Kag, Minister of Trade, Industry and Energy, stated on the 24th that the conflict between Korea Electric Power Corporation and Korea Hydro & Nuclear Power over the settlement of construction costs in the process of exporting nuclear power plants is "unacceptable."

Minister Kim, responding to related questions from lawmakers at the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee audit that day, said, "It is difficult for the public to understand that Korea Electric Power Corporation and Korea Hydro & Nuclear Power, both government-affiliated organizations, are engaging in lawsuits or disputes against each other," and added, "We are reviewing measures to swiftly resolve the controversy."

Currently, Korea Electric Power Corporation and Korea Hydro & Nuclear Power are in conflict over the settlement of approximately 1 trillion won in additional construction costs incurred during the Barakah nuclear power plant project in the United Arab Emirates (UAE). Korea Hydro & Nuclear Power claims that the increased costs were due to delays and additional instructions from the client, and insists that Korea Electric Power Corporation should settle the construction costs first. On the other hand, Korea Electric Power Corporation maintains that it should first recover the costs from the UAE side and then distribute them to Korea Hydro & Nuclear Power.

Minister Kim mentioned the need to establish a consultative body for nuclear power plant exports, stating, "We will clarify the roles among domestic institutions and prevent further conflicts regarding the main exporting entity, financing structure, and technology ownership." The Ministry of Trade, Industry and Energy plans to finalize a "nuclear power plant export governance improvement plan" as early as within this year.

At the audit, issues such as the appropriateness of Korea Hydro & Nuclear Power's contract with Westinghouse in the United States, intellectual property rights, and the ratio of construction cost sharing were also raised. Lawmakers from both ruling and opposition parties criticized the government for poor management, pointing out that the main exporting entity is unclear and the profit-sharing structure is unreasonable.

In response, Minister Kim said, "Although there are some regrettable aspects to the contract, it is significant in that it has established a foothold for the entry of Korean nuclear power plants into the European market," and added, "The government is also reviewing follow-up measures for the contract."

Regarding the National Assembly's request for disclosure of the contract, he drew a line by stating, "Full disclosure is not desirable, as this involves trade secrets, the Korea-US nuclear agreement, and diplomatic matters such as trade negotiations."