South Korea and Türkiye Sign Financing Agreement to Advance Nuclear Power Cooperation

Recently, during a bilateral meeting held in Seoul between South Korean President Lee Jae-myung and Turkish President Recep Tayyip·Erdogan, the Export-Import Bank of Korea (Eximbank) and Türkiye's nuclear energy company formally signed a memorandum of cooperation on financing for energy projects.

It is reported that the agreement aims to provide solid financial guarantees for South Korean companies intending to participate in the construction of Türkiye's second nuclear power plant at Sinop on the Black Sea coast. Türkiye's Ministry of Energy stated that the two sides will establish a joint working group to discuss specific financing arrangements and information exchange. Prior to this, South Korea's state-owned Korea Electric Power Corporation (KEPCO) had completed a preliminary feasibility study with the Turkish side, and technical and economic assessments are currently being advanced in parallel.

Turkish President Erdogan noted that Türkiye is comprehensively weighing financing terms, power generation costs, and the overall benefits to its national economy. As one of the potential partners for the Sinop project, South Korea is seeking to gain a competitive advantage by combining its construction experience at the Barakah NPP in the UAE with strong state financial support.

In addition to financing cooperation in the nuclear energy sector, South Korea and Türkiye have also agreed to further expand their comprehensive strategic partnership in dimensions including defense equipment, hydrogen energy, critical minerals, and trade. As the two sides elevate the Joint Free Trade Agreement Committee to the ministerial level, in-depth synergy between the two countries in nuclear energy and high-tech infrastructure is ushering in new development opportunities.