As part of its investment project in the U.S., Korea Electric Power Corporation (KEPCO) has announced plans to conduct due diligence and negotiations regarding the acquisition of a stake in Westinghouse. However, the specifics of the acquisition and its scale will be determined based on investment conditions. KEPCO clarified that the maximum payment of $2 billion per nuclear reactor to Westinghouse is a cap, not the actual amount to be paid.
On October 12, KEPCO President Kim Dong-cheol attended a National Assembly audit session of the Ministry of Trade, Industry and Energy, where he stated, "Securing a stake will improve our relationship with Westinghouse and facilitate smoother interactions with the U.S. government, aiding our entry into the U.S. and third-country markets. We will negotiate the stake acquisition within a reasonable range through due diligence."
According to a joint fact sheet released by the South Korean and U.S. governments, South Korea is considering a project to build eight large nuclear reactors in the U.S., known as 'Project Power.' As part of this process, South Korean companies are also looking to invest in a minority stake in Westinghouse.
In response, lawmaker Park Sung-min from the ruling People Power Party remarked, "To enter the U.S. or European markets, we need to increase our stake in Westinghouse," and inquired about the expected amount of stake acquisition given the recent significant rise in the company's value.
In reply, President Kim stated, "If I mention that we are acquiring a stake, it would disadvantage us in price negotiations, so we have a strategy. The decision on whether to acquire a stake and its scale will be made within a reasonable range."
The practical authority resulting from the stake acquisition was also discussed. Lawmaker Choi Soo-jin pointed out that the Ministry of Trade, Industry and Energy had reported that acquiring a 5-10% stake in Westinghouse would grant voting rights. Kim Chang-hee, the ministry's nuclear strategy planning director, explained that unlike preferred shares, common shares come with one vote per share.
Regarding claims that investing in Westinghouse would secure exclusive rights to intellectual property (IP), Kim clarified, "That is not the case," explaining that acquiring a stake alone does not guarantee exclusive technology rights.
The issue of fees also emerged as a point of contention. Lawmaker Park mentioned that the fees payable to Westinghouse for technology, services, and nuclear fuel could reach up to $2 billion per reactor. In response, President Kim stated, "The $2 billion is a cap guideline; it does not mean we will pay that entire amount."
He also refuted claims that approximately $350 million was paid to Westinghouse during the bidding process for the Dukovany nuclear power plant in the Czech Republic, asserting that the actual amount was much lower. However, he did not disclose specific figures due to a confidentiality agreement among KEPCO, Korea Hydro & Nuclear Power, and Westinghouse.
President Kim emphasized, "We are doing our best to negotiate the settlement agreement (SA) and will negotiate specific nuclear contracts with Westinghouse within the scope of the SA going forward."
* This article has been translated by AI.
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