Business chiefs to join Yoon's Czech Republic trip as nuclear deal hangs in the balance

Industry

Business chiefs to join Yoon's Czech Republic trip as nuclear deal hangs in the balance

Published: 26 Aug. 2024, 18:30 Updated: 26 Aug. 2024, 20:55

SARAH CHEA
chea.sarah@joongang.co.kr

A view of the new Dukovany nuclear power plant site in the Czech Republic. [YONHAP]

The heads of Korea's major corporations will accompany President Yoon Suk Yeol during his visit to the Czech Republic next month as the president's administration is trying hard to seal a 24 trillion won ($18.1 billion) nuclear deal with the European country.

The visit comes as Korea faces an intellectual property conflict with Westinghouse Electric, and approval from the Pittsburgh-based nuclear energy company is key to exporting Korean-made nuclear reactors.

SK Group Chairman Chey Tae-won and Doosan Group Chairman Park Jeong-won confirmed their participation, while other magnates including Samsung Electronics Executive Chairman Lee Jae-yong and LG Group Chairman Koo Kwang-mo will also join the business delegation, according to local media outlets.

A Korea Hydro & Nuclear Power (KHNP)-led Korean consortium in July was selected as the preferred bidder to build two nuclear reactors in Dukovany in an estimated 24 trillion won project along with various Korean firms including Doosan Enerbility and Daewoo Engineering & Construction. The two sides are currently in negotiations on a legally binding agreement to be inked in March.

Hyundai Motor CEO Chang Jae-hoon is reportedly included on the delegation list instead of Executive Chair Euisun Chung.

"SK's Chey will visit the Czech Republic in his capacity as the chairman of the Korea Chamber of Commerce and Industry [KCCI]," said a spokesperson for the business lobby. "Visits by other business leaders are being reviewed positively, though nothing has been confirmed yet."

The KCCI is currently in the process of organizing a business delegation to join the two-day trip on Sept. 19 and 20. The visit will include a business forum seeking networking expansion and memorandum of understanding-signing ceremonies between Korean and Czech companies, according to the KCCI.

Yoon's trip with the business delegation comes amid the legal entanglement with Westinghouse Electric, a complication that could influence the Czech deal.

It is reported that the U.S. firm will likely refuse to give approval to Korea to export nuclear reactors on the basis that it infringed on intellectual property. Under the guidelines of the Nuclear Suppliers Group formed in 1978, Korea needs Westinghouse’s consent to export nuclear reactors.

Their legal battle started in October 2022 when the U.S. company filed a lawsuit against the KHNP and the Korea Electric Power Corp. (Kepco) claiming that Korea's nuclear technology incorporates Westinghouse technology. KHNP and Kepco, however, claim the core technology was domestically developed while also acknowledging that they received assistance from Westinghouse in the early stages of the development.

Industry Minister Ahn Duk-geun, Kepco CEO Kim Dong-cheol and KHNP CEO Whang Joo-ho visited the United States earlier in the month for discussions with Westinghouse executives. The result of talks has not been disclosed, but local media outlets reported that they did not go well.

A spokesperson from the presidential office also told reporters that it is "in talks with the U.S. government for an amicable settlement," and will continue to hold "close negotiations under the Korea-U.S. alliance."

BY SARAH CHEA [chea.sarah@joongang.co.kr]