KHNP-Westinghouse deal criticized

[Anchor]

Korea Hydro & Nuclear Power is facing increasing criticism over its agreement with the American nuclear company Westinghouse, with accusations of an unfair contract.

Some are calling it a humiliating deal, claiming Korea has effectively surrendered its position in the global nuclear market.

On the other hand, there are also arguments that it was an unavoidable choice.

Reporter Lee Jae-hee has the story.

[Report]

At the end of 2022, the Korean government and Korea Hydro & Nuclear Power signed an MOU for nuclear power development with Poland.

During this time, they were also working hard to enter the European nuclear market with countries like Sweden and the Netherlands.

However, they suddenly withdrew from these efforts at the end of last year.

[Hwang Joo-ho/President of Korea Hydro & Nuclear Power/Yesterday: "We reached the conclusion that we should target the U.S. market instead of continuing our efforts in the European market."]

Related to this, it is reported that Korea Hydro & Nuclear Power agreed with Westinghouse in January not to pursue nuclear contracts in Europe.

This means that only Westinghouse can secure contracts in Europe, North America, and Japan, effectively blocking about 60% of the global nuclear market.

In exchange, Korea Hydro & Nuclear Power can pursue contracts in Southeast Asia, the Middle East, South America, and Africa, but most of these are regions where nuclear construction is difficult.

[Park Jong-woon/Professor of Energy and Electrical Engineering at Dongguk University: "Nuclear power cannot exist independently. There must be external power that is more than five times the nuclear generation capacity. Developed countries can manage on their own, while countries without the infrastructure are told to build and maintain it themselves..."]

However, some analysts suggest that there is significance in ending the disputes with Westinghouse, which have hindered Korea's nuclear exports since the Barakah nuclear power plant in the United Arab Emirates in 2009 and recent issues in the Czech Republic.

There is also speculation that domestic companies may take on the construction of the nuclear plants that Westinghouse secures.

[Jeong Beom-jin/Professor of Nuclear Engineering at Kyung Hee University: "Westinghouse does the designing but oesn't do the construction. They have no choice but to collaborate with construction companies abroad. Our country is the best in the world at building nuclear power plants."]

It is reported that Korea Hydro & Nuclear Power is exploring various forms of cooperation, including joint investments with Westinghouse.

KBS News, Lee Jae-hee.