On May 14, the Ministry of Trade, Industry and Energy held the first nuclear export strategy council meeting at the Korea Trade Insurance Corporation, where it announced a plan for "efficiency in the nuclear export system."
The ministry presented the export efficiency plan in two parts: immediate measures and plans to be pursued within the year. As part of the immediate measures, a public-private joint "Export Planning Committee" will be established under the nuclear export strategy council. The committee, chaired by the ministry's nuclear strategy planning director, will lead negotiations, planning, and coordination for nuclear exports while enhancing reviews and consultations on economic viability and risks.
This move comes as most nuclear export contracts have been conducted through direct negotiations. A ministry official stated, "Since 2010, there have been over 20 nuclear exports globally, and with the exception of the Czech Republic, most have been conducted through direct negotiations between governments." The official emphasized the importance of government involvement, noting that these projects are not merely issues between public enterprises but involve government-to-government agreements and national projects.
Countries where KEPCO and KHNP previously operated separately will now be managed collaboratively. While both companies will jointly undertake overseas nuclear project development and main contracts, KEPCO will handle external negotiations and equity investments due to its financial strength and recognition. KHNP will lead the construction and operation sectors.
This restructuring aims to resolve conflicts between KEPCO and KHNP, which divided nuclear export functions in 2016. KEPCO was assigned to countries that did not require changes to the design of Korean nuclear reactors, while KHNP took on countries needing design modifications.
For instance, KEPCO managed the Barakah Nuclear Power Plant in the UAE, while KHNP was responsible for the Dukovany Nuclear Power Plant in the Czech Republic. However, disputes arose between the two companies regarding additional construction costs for the Barakah plant.
The Board of Audit and Inspection recently pointed out that inefficiencies in bidding and negotiations were caused by insufficient cooperation in sharing key information, negotiation experience, and support for personnel and technical information. It also noted that a lack of consistency in external negotiations and responses has undermined national credibility.
Currently, KHNP will take the lead in ongoing or visible projects in the Czech Republic and the Philippines. KHNP is also responsible for the export of innovative small modular reactors (i-SMR), which it is currently developing.
Additionally, the ministry plans to advance the "Nuclear Export Promotion Act" within the year. This proposed legislation will include provisions for the ministry's oversight of public institutions involved in overseas nuclear projects, the establishment of a comprehensive nuclear export agency, and legal grounds for export support measures.
During the legislative discussions, the establishment of a comprehensive nuclear export agency will also be considered. The ministry intends to explore the possibility of a unified nuclear export agency, in addition to KEPCO and KHNP.
Addressing concerns that the government may interfere in the management of public institutions, a ministry official clarified, "Rather than participating in management, we see it as managing specific projects or economic risks. It is a process where both the public and private sectors seek optimal negotiation and competitive strategies for projects involving counterparts."
On the same day, KEPCO President Kim Dong-cheol and KHNP President Kim Hoe-cheon signed a "Strategic Partnership Agreement for Nuclear Exports," agreeing to strengthen cooperation at each stage of nuclear export projects and enhance information and personnel exchanges. They also agreed to modify contracts to change the arbitration of the ongoing UAE nuclear project from the London International Arbitration Court to the Korean Commercial Arbitration Board.
Minister of Trade, Industry and Energy Kim Jeong-kwan stated, "To effectively respond to current nuclear export issues in the U.S., Czech Republic, and Vietnam, we will refine the K-nuclear export system as a unified team." He emphasized that ultimately, the government support will be strengthened through legislation. He added, "To seize opportunities in the global nuclear renaissance, we will bolster the competitiveness of the existing Korean nuclear industry, consolidate the capabilities of domestic institutions, and enhance our economic and risk management systems."
* This article has been translated by AI.
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