Korea Electric Power Technology is seeing gains following news of expanded nuclear cooperation between South Korea and the United States. The company has agreed to amend its existing settlement agreement with Westinghouse to facilitate the construction of the APR1400 nuclear reactor in the U.S., boosting expectations for increased nuclear exports.
As of 10:36 a.m. on the Korea Exchange, Korea Electric Power Technology shares rose by 2,900 won (2.37%) to 125,000 won. The stock initially climbed to 129,000 won before giving back some gains but has maintained its upward trend.
The rise in stock price is attributed to optimism surrounding the U.S.-Korea nuclear cooperation agreement, which includes plans to utilize up to $120 billion from a $200 billion investment fund to construct eight large nuclear reactors in the U.S.
The framework involves the governments of both countries, along with Westinghouse, Korea Electric Power, and Korea Hydro & Nuclear Power. The construction plan includes two APR1400 reactors and six Westinghouse AP1000 reactors, with plans to first build two AP1000 reactors, followed by two APR1400 and two additional AP1000 reactors.
Notably, the amendment to the settlement agreement with Westinghouse, which previously restricted the construction of APR1400 reactors in the U.S., is a key development. The agreement, signed in January of last year, limited APR1400 construction, but the new framework will allow for the construction of two APR1400 reactors in the U.S.
Kim Jeong-gwan, Minister of Trade, Industry and Energy, stated, "The framework includes provisions to amend the settlement agreement to allow for the construction of two APR1400 reactors in the U.S., and we will not leave it unamended after signing it."
The entry of the APR1400 into the U.S. market is expected to influence future international bidding for Korean nuclear reactors.
Domestic companies are also expected to participate in the construction of the six AP1000 reactors, opening opportunities for Korean construction and equipment firms in U.S. nuclear projects, which is raising expectations for related companies.
As a result, shares of nuclear-related companies are also rising. Korea Electric Power KPS is up 0.51% at 43,925 won, BH is up 0.17% at 60,100 won, and Doosan Enerbility is trading at 82,700 won, up 1.35%.
* This article has been translated by AI.
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