This file photo, taken May 6, 2025, shows the Dukovany nuclear power plant, located about 170 kilometers southeast of Prague. (Image courtesy of Yonhap)
SEOUL, Aug. 19 (Korea Bizwire) — A $26 billion nuclear power contract won by South Korean firms in the Czech Republic is drawing scrutiny after revelations that Korea Hydro & Nuclear Power (KHNP) and Korea Electric Power Corp. (KEPCO) signed a sweeping agreement with Westinghouse Electric that could bind Seoul’s industry to decades of costly obligations.
According to industry sources, the deal reached in January — intended to settle a long-running intellectual property dispute with the U.S. nuclear giant — requires South Korea to seek Westinghouse’s approval for any future small modular reactors (SMRs) or next-generation designs developed over the next 50 years.
Each export of a nuclear reactor would also trigger payments of at least 175 million dollars in technology fees, along with an estimated 650 million dollars in equipment and service purchases per unit.
The conditions emerged after Westinghouse sued KHNP and KEPCO in U.S. federal court in 2022, alleging infringement of proprietary reactor technology. The dispute escalated even as KHNP was chosen as the preferred bidder for the Czech Dukovany nuclear project last July, with Westinghouse lobbying Prague to stall the deal.
The January settlement formally ended litigation, but its terms — previously withheld under confidentiality — appear to heavily favor Westinghouse.
A $26 Billion Win With Strings Attached: Korea’s Nuclear Deal Tied to U.S. Oversight for 50 Years (Image supported by ChatGPT)
Critics say the concessions risk undermining the profitability of Korea’s hard-won overseas nuclear contracts. “This could amount to a losing bargain,” said one industry observer, noting that offering Westinghouse a share of royalties and long-term supply contracts erodes the competitiveness of Korea’s bids.
Supporters counter that clearing the legal roadblocks was a pragmatic move in a global market where nuclear demand is rising and disputes with Washington could jeopardize future projects.
As part of the Czech deal, Westinghouse will reportedly control initial fuel supply for at least a decade after the reactors come online. The settlement’s 50-year duration ensures that the U.S. firm will continue to wield influence over Korea’s nuclear exports for generations.
The controversy underscores the delicate balance Seoul faces: protecting its nuclear ambitions abroad while managing strategic dependence on American technology.
M. H. Lee (mhlee@koreabizwire.com)
