Korea Electric Power Corp. (KEPCO) shares surged more than 8% during trading on August 26, following reports that the U.S. government proposed a stake investment in Westinghouse Electric Company (WEC) to South Korea.
As of 1:46 PM KST, KEPCO's stock was trading at 35,500 won, up 8.56% (2,800 won) from the previous trading day, according to the Korea Exchange.
The rise in KEPCO's stock is fueled by optimism surrounding the potential investment in Westinghouse. Industry sources indicate that the Ministry of Trade, Industry and Energy and KEPCO are currently reviewing a proposal from the U.S. regarding a stake investment in Westinghouse, including the specifics of the investment structure and funding methods.
This arrangement would allow Korean companies to participate in U.S. nuclear power construction projects while securing a stake in Westinghouse. If the investment materializes, it could enhance KEPCO's negotiating power regarding export controls and intellectual property issues that have arisen during the nuclear export process.
Last January, KEPCO and Korea Hydro & Nuclear Power signed a long-term agreement with Westinghouse related to nuclear exports, which reportedly includes provisions for royalties and service purchases, along with certain restrictions on entering some overseas markets.
In line with KEPCO's strong performance, other nuclear-related stocks are also rising. At the same time, KEPCO Engineering & Construction was trading at 123,100 won, up 13.35% from the previous day.
However, the government has distanced itself from the speculation regarding a joint acquisition of Westinghouse shares. The Ministry of Trade, Industry and Energy stated that the notion of a joint investment by South Korea and the U.S. to acquire Westinghouse shares is “not accurate.”
* This article has been translated by AI.
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