South Korea and Westinghouse Electric Plan to Advance Cooperation on 8 Nuclear Power Plants in the U.S.

According to a September 9 report by South Korean media, South Korea and the United States are coordinating an investment cooperation plan to build up to 8 large-scale nuclear power plants in the U.S., with a total project scale of approximately $120 billion, equivalent to about 161 trillion Korean won. Korea Hydro & Nuclear Power (KHNP) and U.S.-based Westinghouse Electric Company (WEC) are expected to collaborate on the project.

The report said the preliminary plans under discussion include: at least 2 of the 8 nuclear power plants using the Korean-designed APR1400 reactor, with the remaining units likely adopting Westinghouse AP1000 technology. Specific site selection, construction entities, operational arrangements, final reactor types, investment structure, and actual capital injection scale still require further negotiation and have not been finalized.

South Korea and Westinghouse Electric have previously been involved in legal disputes over technology and intellectual property issues in South Korea's nuclear power exports. Westinghouse had previously claimed that South Korea's APR1400 reactor used its related core technologies and filed lawsuits regarding export activities by Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power. The two sides subsequently reached a settlement and agreed to strengthen cooperation in the global nuclear power market.

In terms of division of work, Westinghouse Electric holds AP1000-related technology, basic design capabilities, and experience in the U.S. nuclear regulatory and licensing system; South Korea has accumulated substantial experience in large-scale nuclear power plant design, procurement, construction, project management, and operation and maintenance. The report suggests that if the two sides form a joint venture or equity cooperation model, Westinghouse Electric may be responsible for basic design and U.S. domestic licensing, while Korea Electric Power Corporation, Korea Hydro & Nuclear Power, and others would handle detailed design, construction, operation, and equipment supply.

South Korea is also discussing whether to participate in acquiring a partial stake in Westinghouse Electric. Related reports state that the U.S. had previously raised the possibility of the South Korean government and Korea Electric Power Corporation participating in Westinghouse Electric's equity arrangements. Currently, Westinghouse Electric is jointly held by funds affiliated with Canada's Brookfield Asset Management and uranium company Cameco. The South Korean government has not yet disclosed details on whether it will take an equity stake, the stake ratio, or whether it will obtain voting rights.

South Korean industry insiders believe that if South Korea can secure clearer project interests through equity or commercial cooperation, it will help increase opportunities for the South Korean nuclear supply chain to enter the U.S. market and strengthen its bargaining power in future intellectual property negotiations for nuclear power exports. However, the project still faces multiple uncertainties, including construction schedules, cost control, profit distribution, risk allocation, and the manner of U.S. federal and state government participation.

South Korean media also noted that after Toshiba acquired Westinghouse Electric in 2006, financial crises triggered by delays and cost overruns in U.S. nuclear projects led Westinghouse Electric to file for bankruptcy protection in 2017. South Korea's nuclear industry therefore believes that if large-scale nuclear investment in the U.S. and equity cooperation with Westinghouse Electric proceed, adequate safeguards must be established in government participation, risk isolation, cost sharing, and project governance mechanisms.

According to reports, South Korea and the U.S. may announce investment-related agreements around September 18. In addition to the framework for building 8 nuclear power plants, other candidate projects for South Korean investment in the U.S. include the Encinal Gas Combined-Cycle Power Plant project in Texas and the Alaska LNG project. The South Korean government is expected to transfer the first tranche of investment funds to the U.S. by the end of this month, exceeding $2.2 billion.