Korean Nuclear Power Firms Collaborate with Westinghouse for U.S. Market Entry

Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP) are set to collaborate with Westinghouse, moving past previous legal disputes over the technology and export rights of the APR1400 nuclear reactor. The partnership aims to transcend their competitive history, which has been marked by intellectual property disputes and conflicts over international bids.

The combination of Westinghouse's nuclear design and technology with the construction and equipment supply capabilities of Korean firms is expected to enhance the global competitiveness of Korean nuclear power projects.
 
According to industry sources, the conflict between Westinghouse and KEPCO/KHNP originated from intellectual property issues regarding the use of Westinghouse technology in the APR1400 reactor. In 2022, Westinghouse filed a lawsuit in a U.S. court, claiming that Korean companies could not export the APR1400 abroad without its consent. At that time, KHNP was pursuing a bid for a nuclear project in Poland. The Korean side maintained that it held the intellectual property rights to the APR1400.

The U.S. court dismissed the lawsuit the following year, stating that Westinghouse did not have standing to directly challenge violations of U.S. nuclear law. However, the court did not address the contractual issues surrounding technology rights and export restrictions. Although the lawsuit was dismissed, disputes over technology fees and export rights continued to be contentious in international nuclear projects.

The conflict resurfaced in 2024 during a bid for a nuclear project in the Czech Republic. After KHNP was selected as the preferred bidder for the Dukovany nuclear project, Westinghouse raised concerns with local competition authorities about the use of Korean nuclear technology and export rights.

In January 2025, both parties announced an agreement to resolve the intellectual property dispute and to clarify ongoing legal conflicts. They expressed intentions to strengthen cooperation in the global nuclear market, but an agreement alone does not guarantee collaboration in international projects.
 
The collaboration between South Korea and the U.S. in nuclear power is expected to serve as a test of whether both sides can combine their strengths beyond their competitive relationship. If Westinghouse handles the nuclear design and technology while Korean companies excel in construction and equipment supply, they may expand their roles in international projects compared to participating individually. For Korean firms, this partnership could also open pathways to participate in Westinghouse's AP1000 projects as part of the supply chain, separate from the APR1400 exports.

Additionally, the South Korean government is pursuing a plan for Korean companies to acquire a stake in Westinghouse, which could further strengthen their business collaboration. The government is considering acquiring 5% to 10% of Westinghouse's common stock at a 10% discount to the initial public offering price. Specific investment conditions will be finalized through discussions between the parties involved.

If the acquisition is successful, Korean companies could expect returns not only from construction and equipment supply but also from the increase in Westinghouse's corporate value and dividends.

However, the exact scope and volume of projects that Korean companies will undertake remain uncertain. Even if the collaboration expands, it does not automatically lead to increased third-country contracts for the APR1400. Addressing how to delineate roles and rights for each project to prevent past export disputes from recurring remains a challenge.

Kim Jeong-kwan, Minister of Trade, Industry and Energy, explained during a background briefing that the government prioritizes the participation of Korean companies in the AP1000 project, although specific participation levels and conditions have yet to be determined. He stated, "The U.S. side is aware of the design, procurement, construction (EPC), and equipment supply capabilities of Korean companies, and we expect these capabilities to be fully utilized in the projects."