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MOU with U.S. moves Korea closer to final Czech nuclear plant deal

Published: 09 Jan. 2025, 17:40

LIM JEONG-WON
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Signatories at the singing of the ″Inter-Agency MOU on Principles for Korea-U.S. Nuclear Energy Exports and Cooperation,″ including Korean Trade Minister Ahn Duk-geun, third from left, and U.S. Secretary of Energy Jennifer Granholm, third from right, pose for a photo at the Department of Energy headquarters in Washington on Jan. 8. [NEWS1]

The Korean and U.S. governments signed a memorandum of understanding (MOU) on nuclear energy export cooperation Thursday, which is expected to green-light a Korean consortium's construction of a nuclear power plant in the Czech Republic beginning in March next year.

Seoul’s Trade Ministry and Foreign Ministry announced Thursday that they officially signed the "Inter-Agency MOU on Principles for Korea-U.S. Nuclear Energy Exports and Cooperation" with the U.S. Department of Energy and the State Department in Washington the day before. The two countries previously signed a tentative agreement in November last year.

The signing of the MOU was attended by Korean Trade Minister Ahn Duk-geun and U.S. Secretary of Energy Jennifer Granholm, while signatories included Director of the Energy Policy Office of the Trade Ministry Lee Ho-hyun, Coordinator for Global and Multilateral Affairs of the Foreign Ministry Kwon Ki-hwan from the Korean side, and Assistant Secretary of Energy for International Cooperation Andrew Wright and Assistant Secretary of State for International Security and Nonproliferation Eliot Kang from the U.S. side.

“The United States and Republic of Korea have worked together on civil nuclear power for more than 70 years,” the two countries said in a joint statement. “The cornerstone of this cooperation reflects the two countries’ mutual dedication to maximizing the peaceful uses of nuclear energy under the highest international standards of nuclear safety, security, safeguards and nonproliferation.”

This MOU signing comes amid ongoing disputes between Korea Hydro & Nuclear Power (KHNP) and Westinghouse, a U.S. nuclear power company, over exporting nuclear power plants to the Czech Republic.

The Korea Hydro & Nuclear Power consortium — comprised of KHNP, Doosan Energy, and Daewoo Engineering & Construction — was selected as the preferred bidder for the Czech nuclear power plant construction project worth over 24 trillion won ($16.4 billion) in July last year. The final contract is expected to be signed in March next year.

If Korea wants to export nuclear power plants to a third country, it must go through the U.S. Department of Energy’s export consent or notification procedures as Korea and the United States are members of the Nuclear Suppliers Group (NSG).

The NSG controls the export of nuclear power plants by each country’s government to prevent the proliferation of nuclear weapons. Korea must undergo these procedures because its technology is based on original technology from Westinghouse, a U.S. company.

However, Westinghouse, a competitor of the KHNP consortium during the bidding for the Czech nuclear power plant project, has objected, and the U.S. government seemed to be stalling for time.

KHNP is also in a dispute with Westinghouse over intellectual property rights, with KHNP negotiating with Westinghouse to resolve the dispute before the final contract and seeking an amicable solution.

The new MOU is expected to pave the way for the U.S. government’s consent for the Czech nuclear power plant deal, with negotiations with Westinghouse becoming much more straightforward.

“This has become an opportunity to strengthen export control cooperation by establishing an information sharing system for transferring civilian nuclear power technology to third countries,” said a Trade Ministry official. “As a ‘global comprehensive strategic alliance,’ we expect it to promote mutually beneficial cooperation between the two countries in the global market in the future.”

BY KIM WON, LIM JEONG-WON [[email protected]]