KEPCO Says $2 Billion Nuclear Fee Is Ceiling

Korea Electric Power Corporation CEO Kim Dong-cheol (left) and Korea Hydro & Nuclear Power CEO Kim Hoe-chun attend the parliamentary audit of the Trade, Industry, Energy, SMEs, and Startups Committee held at the National Assembly on Oct. 12. (Provided by Yonhap News Agency)  The government's official position has been released that the $2 billion technology use fee to be paid to the U.S. nuclear company Westinghouse is not the actual execution amount but a ceiling for negotiations. Korea Electric Power Corporation CEO Kim Dong-cheol attended the parliamentary audit of the Trade, Industry, Energy, SMEs, and Startups Committee of the National Assembly on Oct. 12 and explained this regarding the technology use fee paid when constructing a Korean-type nuclear power plant in the United States as part of an investment project in the U.S. This is an answer to criticism from political circles that the cost, which amounts to 2.67 trillion won (approximately $2.05 billion) per nuclear power plant, is excessive. During his questioning on Oct. 12, Representative Park Sung-min of the People Power Party confirmed the fact that the government adjusted the price of the technology fee, services, and nuclear fuel to be paid to Westinghouse to the level of $2 billion per nuclear power plant. In response, CEO Kim drew a line, stating, "It is true that $2 billion is the ceiling, but it does not mean we will pay all of it." Clarifications also continued regarding criticism that the conditions have become disadvantageous compared to the past export of the Dukovany nuclear power plant in the Czech Republic. Regarding the point that a total of $350 million in technology use fees was paid at the time of the Dukovany nuclear power plant contract, CEO Kim rebutted, "The known figure is too excessive, and in reality, a much smaller amount was paid." KEPCO is considering a plan to acquire a 5% to 10% equity stake to resolve conflicts and strengthen cooperation with Westinghouse. CEO Kim expects that improving relations with Westinghouse and the U.S. government through securing an equity stake will allow them to occupy an advantageous position in jointly entering the U.S. mainland as well as third-country markets in the future. CEO Kim showed his will to proceed with specific nuclear power plant contract negotiations within the scope of the Settlement Agreement. The policy is to protect the national interest by determining whether to acquire an equity stake and its size within the most reasonable scope possible. Currently, KEPCO's position is that it is doing its best for comprehensive cooperation, including the technology use fee, with Westinghouse. CEO Kim concluded his parliamentary audit answers by indicating that this negotiation will be a turning point that determines the global competitiveness of the Korean nuclear power plant industry in the future.