SEOUL, October 24 (AJP) - South Korea’s trade minister expressed concern on Friday over an escalating dispute between two state-run energy companies, saying the conflict underscored the need for clearer governance in the country’s nuclear export program.
The conflict centers on a roughly $1 billion cost adjustment related to the Barakah nuclear power plant in the United Arab Emirates — South Korea’s first nuclear export project, which began operations in 2021. The disagreement has reportedly escalated to arbitration at the London Court of International Arbitration.
At a parliamentary audit, Trade, Industry and Energy Minister Kim Jung-gwan said the dispute between Korea Electric Power Corp. (KEPCO) and Korea Hydro & Nuclear Power (KHNP) “should not have occurred,” and that his ministry would review ways to establish a unified framework for future nuclear projects abroad.
Lawmakers raised concerns that both companies submitted sensitive documents to foreign law and consulting firms during the proceedings, potentially exposing national assets. “This situation raises serious questions about governance and security in overseas nuclear operations,” said Democratic Party lawmaker Kim Dong-ah.
Minister Kim acknowledged the ministry’s responsibility in the matter and said discussions were underway to consider a more centralized export system. He noted that other major nuclear-exporting nations operate under strong government-led frameworks, in contrast to South Korea’s divided structure between KEPCO and KHNP.
“We are reviewing institutional improvements to prevent such conflicts from recurring,” Kim said, signaling a potential policy shift toward tighter oversight of nuclear export projects.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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