[Exclusive] Tug-of-War Over Nuclear Power Plant Export Leadership... KEPCO Counters Government Study With Its Own Research Project

Initiation of Research Project on Nuclear Power Plant Export System Reform
Korea Electric Power Corporation Seeks to Support Its Own Position
Preference for Function-Based Division of Roles
Over Establishing a Third Institution or Unificati

Exterior view of Unit 4 at Barakah Nuclear Power Plant, UAE. Korea Electric Power Corporation

As the government is currently conducting a research project to adjust the nuclear power plant export system, which is currently divided between Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP), KEPCO, one of the subject institutions, has drawn attention by commissioning a consulting project on the same topic. It is analyzed that KEPCO, which prefers to maintain the current system, is conducting the project to support its own position. (See The Asia Business Daily article dated December 19, 2025, 'Nuclear Power Plant Exports Split Between KEPCO and KHNP-Will There Be a Unified Third Organization?')

According to ALIO, the public institution management information system, on January 19, KEPCO recently announced a bid for a "Policy Consulting Service to Enhance Nuclear Power Plant Export Competitiveness." The bidding deadline is February 9, and the project period is three months from the start date.

According to the request for proposal (RFP) issued by KEPCO, the selected contractor is required to conduct research in a wide range of areas, including strategies for participating in overseas large-scale nuclear power plant projects, plans for Korea-US nuclear cooperation, diversification of export models through participation in Small Modular Reactor (SMR) projects, directions for advancing the domestic nuclear export system, identifying risks and making recommendations for transitioning to a function-based integrated system, and step-by-step strategies to enhance bidding competitiveness under a function-based integrated system.

This consulting project by KEPCO overlaps significantly with the research on improving the efficiency of the nuclear export system that the Ministry of Trade, Industry and Energy (MOTIE) has been conducting through the Korea Nuclear Export Industry Association since August last year. The ministry initially planned to complete the project by June this year, but as Korea-US nuclear cooperation becomes more concrete, it is seeking to accelerate the timeline as much as possible. Based on the results of the research, the government plans to choose one of three options: establishing an independent third institution, unifying the system under either KEPCO or KHNP, or dividing functions between the two organizations.

Currently, nuclear power plant exports are jointly handled by KEPCO and KHNP, following the adjustment of functions among public enterprises in 2016. KEPCO is responsible for countries that do not require changes to the Korean nuclear reactor model, while KHNP takes charge where design modifications are necessary. However, there has been criticism that the dual structure makes it difficult to establish a consistent overseas strategy and reduces efficiency. During the construction of nuclear power plants in the United Arab Emirates (UAE), the two organizations even filed for arbitration with the London Court of International Arbitration (LCIA) over the settlement of additional construction costs amounting to about 1 trillion won, sparking controversy.

In this context, KEPCO's decision to commission its own research project appears to reflect the management's determination not to lose the initiative in nuclear exports to KHNP. On January 8, KEPCO President Kim Dongcheol expressed during a work report to the Ministry of Trade, Industry and Energy that the system should shift to a function-based cooperation model, with KEPCO handling marketing and financial procurement, and KHNP in charge of nuclear plant construction, thereby leveraging the strengths of each institution.

This is similar to the "division of functions" option currently under government consideration, and in effect, suggests maintaining the current dual structure. In its RFP, KEPCO also requested that the contractor propose the optimal division of labor among participating organizations-such as establishing joint ventures, forming consortia, subcontracting, and agreements-when domestic companies form "Team Korea" to enter overseas markets.

In particular, KEPCO has asked the contractor to include participation strategies for fourth-generation nuclear power projects such as the US Westinghouse-type (AP1000) reactors and SMRs, in preparation for expanded Korea-US nuclear cooperation. KEPCO has not previously engaged in SMR projects. Domestically, KHNP is developing the innovative small modular reactor (i-SMR) in collaboration with related organizations and companies.

KHNP, which is currently being managed by an acting president due to a vacancy in the presidency, has not yet announced a clear position. KHNP stated, "Our official position is to follow government policy." However, internally, there are strong voices calling for the unification of nuclear exports under KHNP.

One KHNP executive, speaking in a personal capacity, said, "Even for the Barakah Nuclear Power Plant in the UAE, which was contracted by KEPCO, KHNP actually handled about 90% of the project. Since KHNP has also built up external recognition and credibility through the Czech nuclear project, it makes sense to unify the export system under KHNP." It is estimated that KEPCO currently has around 150 employees in charge of nuclear power plants.

A KEPCO official explained the reason for commissioning the consulting project, saying, "Due to the surge in electricity demand driven by artificial intelligence (AI) and data centers, the demand for nuclear power is rising. This project is intended to comprehensively review KEPCO's nuclear export strategy to secure subsequent projects in countries such as Vietnam, T?rkiye, and Saudi Arabia."