Behind the “Unfair Settlement”: The U.S. Ruling That Tied Korea’s Nuclear Exports to Washington | Be Korea-savvy

Behind the “Unfair Settlement”: The U.S. Ruling That Tied Korea’s Nuclear Exports to Washington


This undated file photo provided by the state-run Korea Hydro & Nuclear Power Co. shows the Dukovany nuclear power plant in the Czech Republic. (Yonhap)

This undated file photo provided by the state-run Korea Hydro & Nuclear Power Co. shows the Dukovany nuclear power plant in the Czech Republic. (Yonhap)

South Korea’s Nuclear Export Deal with Westinghouse Sparked by U.S. Ruling on Reactor Technology Origins

SEOUL, Oct. 20 (Korea Bizwire) — The South Korean government’s controversial settlement with U.S. firm Westinghouse over nuclear technology rights was driven by a 2024 decision from the U.S. Department of Energy (DOE) declaring that Korea’s APR1400 reactor design contains American-origin technology, newly disclosed documents show.

According to a report submitted by Korea Hydro & Nuclear Power (KHNP) to Rep. Heo Sung-moo of the Democratic Party, the DOE issued its ruling in August 2024, under the Biden administration, following a closed-door meeting attended by Korean officials, KHNP, Korea Electric Power Corp. (KEPCO), and Westinghouse representatives. The meeting also included the U.S. Argonne National Laboratory, which conducted the technical verification.

The U.S. decision came just weeks after KHNP was named the preferred bidder for a nuclear project in the Czech Republic. It effectively invalidated South Korea’s long-held position that the APR1400 was an independently developed model not subject to U.S. export controls.

Following the ruling, KHNP and KEPCO found themselves at a disadvantage, as Washington’s export control authority meant Korean firms could not independently pursue reactor exports to third countries without U.S. approval.

Pressed against a March 2025 contract deadline, KHNP eventually signed a 50-year agreement with Westinghouse in January that included roughly 1 trillion won (US$730 million) per reactor in component and service purchases, along with royalty payments. The deal also limited Korea’s ability to enter advanced markets independently.

Korean Nuclear Dreams Stalled Abroad as Markets Close, Investors React at Home (Image supported by ChatGPT)

Korean Nuclear Dreams Stalled Abroad as Markets Close, Investors React at Home (Image supported by ChatGPT)

Seoul’s $1 Trillion Nuclear Concession Traced to Secret U.S. Ruling on Reactor Design

The settlement followed months of pressure from Washington, which previously rejected KHNP’s attempt to file an independent export application for the Czech deal, insisting it be submitted by a U.S. entity.

Industry observers described the arrangement as a “forced compromise,” noting that U.S. authorities had effectively used export controls as leverage. “Without cooperation from the U.S., exports were practically impossible,” one insider said.

The Ministry of Trade, Industry and Energy and the DOE signed a separate bilateral accord on January 8 to promote joint nuclear exports under strict nonproliferation guidelines. Officials said the move aimed to reset relations and create a cooperative “Team KORUS” framework ahead of the Trump administration’s return to office.

The current government, while acknowledging public criticism that the deal was “unequal,” has indicated it will handle the matter pragmatically to avoid straining Seoul–Washington relations.

Trade Minister Kim Jung-kwan told lawmakers last week, “Every contract involves trade-offs. Despite the controversy, such negotiations have shaped the history of Korea’s nuclear exports.”

Opposition lawmaker Heo Sung-moo, however, accused the previous administration and state firms of concealing the DOE’s 2024 ruling, calling it “the pivotal moment of the humiliating Westinghouse accord” and vowing to uncover who ordered the decision to be kept secret.

M. H. Lee (mhlee@koreabizwire.com)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>