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Photo courtesy of Korea Hydro & Nuclear Power |
[Alpha Biz= Kim Jisun] South Korea will revamp its nuclear power export framework by shifting from a country-specific approach to a unified joint strategy involving Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP), the government announced.
Under the new structure, the two entities will jointly lead overseas nuclear project development and serve as co-prime contractors. KEPCO will take charge of negotiations, investment, and financing, while KHNP will be responsible for construction and operation.
The revised framework effectively creates a “joint front” for nuclear exports. Future projects in new markets such as Vietnam are expected to be pursued through joint ventures (JVs) or consortiums formed by KEPCO and KHNP, enabling coordinated bidding and negotiations.
The government described the joint approach as a transitional model, noting that it will later evaluate performance before deciding whether to fully consolidate the export system under a single entity—potentially involving KEPCO, KHNP, or an integrated organization.
The Ministry of Trade, Industry and Energy (MOTIE) unveiled the “Nuclear Export System Efficiency Plan” at the inaugural Nuclear Export Strategy Council held on May 14.
Given the strategic nature of nuclear power projects, which often require strong intergovernmental cooperation, the government plans to take a leading role in export negotiations and support mechanisms. Since 2010, most global nuclear export deals—except for the Czech Republic case—have been carried out through intergovernmental agreements (IGAs) or state-to-state contracts.
To strengthen coordination, a public-private “Nuclear Export Planning Committee” will be established under the existing strategy council. The committee will include government officials, state-owned enterprises, and experts in legal, contractual, and financial fields, and will oversee project planning, coordination, and economic feasibility assessments.
Countries previously managed separately by KEPCO and KHNP will now be handled under a unified system. Historically, KEPCO led projects in markets such as the United Arab Emirates (UAE) and Vietnam, while KHNP focused on the Czech Republic and the Philippines.
However, KHNP will continue to lead projects in the Czech Republic and the Philippines, as well as the development of innovative small modular reactors (i-SMRs), reflecting its expertise and ongoing involvement in SMR commercialization.
From the project development stage onward, KEPCO and KHNP will operate jointly. While both companies will collaborate on project development and main contracts, KHNP will oversee construction and operations, and KEPCO will handle equity investment and financing. External negotiations will be led by KEPCO, effectively positioning it as the primary negotiation channel.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
