Seoul seeks to end KHNP-Westinghouse dispute

This photo shows nuclear power units in Dukovany, a city located 170 kilometers southeast of the Czech Republic's capital Prague. (Korea Hydro and Nuclear Power)

South Korea is looking for a solution to end a legal dispute between local nuclear power company Korea Hydro and Nuclear Power and US firm Westinghouse Electric Company "through various channels," amid pressure mounting on Seoul over a nuclear export deal worth at least 24 trillion won ($18 billion) with the Czech Republic.

"The government is discussing with the US government through various channels to support the amicable resolution of the corporate dispute," an official of the presidential office said on condition of anonymity Saturday. "We will maintain close coordination with our US counterparts on the foundation of the ironclad Korea-US alliance, so that (the dispute) does not harm Seoul's nuclear exports."

The official added that Seoul and Washington "have reached common ground" over the necessity to cooperate in the energy industry in general concerning power sources such as nuclear, renewables and hydrogen.

The remarks came a month after a South Korean consortium led by the state-run KHNP in July was picked as the preferred bidder for at least two Czech nuclear power plant units with 1,000-megawatt capacity in the Czech Republic's southeastern city of Dukovany. The contract for the two Dukovany units is poised to be finalized by March 2025, and the project is expected to break ground in 2029 with the goal of completion by 2036.

The Korean consortium also won the exclusive right to build two more units in Temelin, 100 kilometers south of Prague, but the Czech government's approval for those nuclear power plants is still pending.

Immediately after the Czech Republic's announcement, Korean Industry Minister Ahn Duk-geun had said in July that the KHNP had "reached a final stage of arrangement" with Westinghouse over the dispute, without elaborating further.

Uncertainties linger over bidder the KHNP's ongoing failure to settle its legal battle with Westinghouse, which was also one of the contenders in the Czech Republic's tender process for new nuclear power unit construction.

The conflict between the state-run KHNP and Westinghouse centers on whether the KHNP's flagship "APR-1400" nuclear reactor design includes any intellectual property licensed by Westinghouse, which introduced the nuclear power generation technique to South Korea in 1969 and has since transferred relevant technologies to the country.

Westinghouse had filed a legal complaint in October 2022 against the KHNP, as the Korean firm inked a letter of intent with counterparts in Poland to build at least two power nuclear power units in the same month.

Westinghouse claims that it has a private right of action under Part 810 of Title 10 in the Code of Federal Regulations of the United States, as the KHNP had failed to meet either reporting or approval requirements, meaning the Korean company cannot export its nuclear power reactor design without the US company's consent.

Separately, the US Department of Energy in January 2023 revoked the KHNP's application for authorization under the code, implying that the South Korean firm is not eligible to apply.

A ruling in September by the District Court of the District of Columbia dismissed Westinghouse's complaint, as it ruled that Westinghouse does not have a private right of action. Westinghouse then appealed this decision. According to Westinghouse, a final ruling is "not expected until late 2025.”

A Korean government source was quoted as saying by the local Korean daily Chosun Ilbo on Friday that the South Korean delegation held closed-door meetings with officials of the US Department of Energy and Westinghouse earlier in August to seek resolution, but they "bore little fruit."

A South Korean delegation led by President Yoon Suk Yeol is poised to visit the Czech Republic in September, with further details yet to be disclosed. According to Seoul, the Korea Chamber of Commerce and Industry is recruiting a team of business leaders to accompany Yoon during the visit.

By Son Ji-hyoung(consnow@heraldcorp.com)