US company has said state-owned KHNP needs permission for exports
South Korea and the US have formally signed a memorandum of understanding that could help clear the way for a deal said to be worth about $16bn (€15bn) for Seoul to build nuclear reactors in the Czech Republic.
South Korea’s industry minister Ahn Duk-geun and US energy secretary Jennifer Granholm attended the signing on 9 January, which involved South Korea’s industry and foreign ministries and the US state and energy departments.
The MOU, on principles concerning nuclear exports and cooperation, came after the two sides initialled the document in November.
In a joint release, Seoul and Washington highlighted their commitment to maximising the peaceful use of nuclear energy in accordance with the “highest standards” of safety, security, safeguards and nonproliferation.
Granholm said on X: “Today, the United States and Republic of Korea reaffirmed our shared commitment to advancing peaceful nuclear energy. Together, we’re enhancing energy security, tackling the climate crisis, and ensuring a safer world.”
The agreement is seen as significant for South Korean nuclear exports to other countries and as part of efforts to resolve a dispute over intellectual property rights related to South Korea’s APR1000 nuclear power plant.
In August 2024, South Korea’s Korea Hydro & Nuclear Power (KHNP) was selected by the Czech government as its preferred bidder to build new nuclear power units at the Dukovany site in the Czech Republic.
Background: Dispute Centres On Intellectual Property
KHNP’s APR1000 and APR1000 reactor technology is based on original technology from Westinghouse, a US company, so exports of the South Korean reactors must go through US export consent or notification procedures.
A dispute between KHNP and Westinghouse related to intellectual property rights is the subject of international arbitration which is not expected to conclude before the second half of 2025.
Westinghouse has said the APR1000 and APR1400 reactor technology includes intellectual property licensed by Westinghouse and that KHNP needs permission from the US firm before selling the unit to other countries.
“KHNP neither owns the underlying technology nor has the right to sublicense it to a third party without Westinghouse consent,” the company said in August 2024. “Further, only Westinghouse has the legal right to obtain the required approval from the US government to export its technology.”
The Korea Times said Westinghouse Electric “is expected to end its two years of dispute with Korea Hydro & Nuclear Power (KHNP) over the US firm’s intellectual property rights”.
“The latest agreement is based on confidence in each other as comprehensive strategic partners, so it is expected to contribute to promoting reciprocal cooperation between the two countries in the global market,” South Korea’s Ministry of Trade, Industry and Energy said in a press release, signalling that the companies of both countries will also restore their relations.
The Czech government welcomed the stronger ties between South Korea and the US in the nuclear energy industry.
“We view this step positively, especially with regard to the Czech project for new nuclear sources in Dukovany,” Czech industry minister Lukas Vlcek wrote on X.
