[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

While the government is conducting a research project to adjust the current nuclear power plant export system, which is divided between Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP), it has drawn attention that KEPCO, one of the subject institutions, has commissioned a consulting service on the same topic. It is analyzed that KEPCO, which essentially wants to maintain the current system, is conducting this project to support its own position. (See the December 19, 2025 article 'Nuclear Power Plant Exports Split Between KEPCO and KHNP, Will a Third Organization Unify Them?')

According to ALIO, the public institution management information system, on the 19th, KEPCO recently announced a bid for a 'policy consulting project to enhance the competitiveness of nuclear power plant exports.' The bid closes on February 9, and the project period is three months from the start date.

According to KEPCO's request for proposal, the selected contractor must conduct research in a wide range of areas, including strategies for participating in large-scale overseas nuclear reactor projects, plans for Korea-U.S. nuclear cooperation, diversification of export reactor types through participation in Small Modular Reactor (SMR) projects, directions for advancing the domestic nuclear export system, identification of risks and recommendations for transitioning to a function-based integrated system, and measures to enhance competitiveness in securing contracts at each stage when operating a function-based integrated system.

This 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 has been conducting through the Korea Nuclear Export Industry Association since August last year. The ministry originally planned to carry out the project until June this year, but as Korea-U.S. nuclear cooperation becomes more concrete, it is trying to move up the timeline as much as possible. Depending on the results, the government plans to choose one of three options: establishing an independent third organization, unifying the system under either KEPCO or KHNP, or dividing roles by function.

Currently, nuclear power plant exports are handled jointly by KEPCO and KHNP, following the adjustment of public enterprise functions for nuclear exports implemented in 2016. KEPCO is responsible for countries that do not require changes to the Korean reactor design, while KHNP handles projects that require design modifications. However, there have been many criticisms that the dual structure makes it difficult to establish consistent overseas strategies and reduces efficiency. During the construction of the United Arab Emirates (UAE) nuclear power plant, the two organizations filed for arbitration with the London Court of International Arbitration (LCIA) over the settlement of additional construction costs exceeding 1 trillion won, which sparked controversy.

In this context, KEPCO's decision to commission a research project appears to reflect management's determination not to lose the initiative in nuclear exports to KHNP. At a Ministry of Trade, Industry and Energy work briefing on the 8th, KEPCO expressed its position that a function-based cooperation system should be established, with KEPCO handling marketing and financial procurement, and KHNP responsible for nuclear plant construction, thereby leveraging the strengths of each institution.

This approach is similar to the 'division of roles by function' option currently under government review and, in effect, advocates maintaining the current dual system. In its request for proposal, KEPCO also asked for recommendations on the optimal division of labor among participating organizations when domestic companies form 'Team Korea' to enter overseas markets, including establishing joint ventures, forming consortia, subcontracting, and agreements.

KEPCO has also requested that the project include strategies for participating in fourth-generation nuclear projects such as the U.S. Westinghouse-type (AP1000) reactors and SMRs, in anticipation of expanded nuclear cooperation between Korea and the United States. KEPCO has not previously engaged in SMR projects. Domestically, KHNP is developing the innovative small modular reactor (i-SMR) in collaboration with relevant institutions and companies.

KEPCO stated that this project was commissioned "to develop KEPCO's overall mid- to long-term nuclear export strategy," emphasizing that "the UAE Barakah nuclear power plant project has been led by KEPCO from the initial contract in 2009 to the present."

KHNP, which is currently operating under an acting president system due to a vacancy in the presidency, has yet to announce a clear position. KHNP stated, "Our official stance is to follow government policy." However, internally, there is strong support for unifying nuclear exports under KHNP.

An executive at KHNP, speaking on the condition of anonymity, said, "Even for the UAE Barakah nuclear power plant, which was contracted by KEPCO, KHNP handled about 90% of the project," adding, "Given KHNP's increased recognition and credibility abroad through securing the Czech nuclear project, it makes sense to unify the system under KHNP." Currently, it is estimated that KEPCO has around 150 employees in charge of nuclear power plant operations.

A KEPCO official explained that the commissioning of this project is "to comprehensively review KEPCO's nuclear export strategy in light of the sharp increase in electricity demand due to factors such as artificial intelligence (AI) and data centers, and the rising demand for nuclear power, as well as to secure follow-up nuclear projects in countries such as Vietnam, T?rkiye, and Saudi Arabia."