SEOUL, August 19 (AJP) - South Korea’s presidential office on Tuesday ordered an investigation into media reports that state-run energy companies accepted "unfavorable" terms from Westinghouse Electric, the American nuclear technology firm, during negotiations for a multibillion-dollar power plant project in the Czech Republic.
Presidential spokeswoman Kang Yu-jung said Chief of Staff Kang Hoon-sik directed the Ministry of Trade, Industry and Energy to conduct the inquiry after high-level discussions at a morning meeting. The move, she said, was aimed at addressing public concerns about the negotiation process and the fairness of the contract terms.
The order followed local media reports that a “global agreement” signed in January between Korea Hydro & Nuclear Power, Korea Electric Power Corporation and Westinghouse included sweeping provisions favoring the U.S. firm.
Among them were requirements that future Korean-designed nuclear reactors intended for export be verified by Westinghouse, as well as obligations to purchase $650 million worth of equipment and services per reactor and to pay $175 million in technology licensing fees per unit.
Kang said the investigation would determine whether the two Korean companies complied with relevant laws and procedures in reaching the agreement and whether they had properly safeguarded national interests in the process.
Prime Minister Kim Min-seok told reporters earlier Tuesday that the government had already begun preliminary fact-finding efforts.
Critics warn that the terms of the Czech contract could undermine Seoul’s bid to establish itself as an independent nuclear exporter rather than a "junior partner" to U.S. firms.
reporter
Candice Kim
candicekim1121@ajupress.com
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