South Korea and the United States have signed a memorandum of understanding (MOU) to jointly pursue opportunities in the global nuclear energy market. With nations rushing to build nuclear power plants to meet increasing electricity demands driven by the expansion of artificial intelligence (AI), the two countries have formed an initiative dubbed “Team KORUS” to tap into this growing market.
According to the World Nuclear Association (WNA), 440 nuclear reactors are currently operational worldwide, with 65 under construction. An additional 430 reactors are in the planning and development stages, indicating significant growth potential for the industry.
As part of the bilateral nuclear export partnership, Korea Hydro & Nuclear Power (KHNP) and U.S.-based Westinghouse are expected to finalize a detailed agreement soon. Westinghouse has agreed to withdraw objections to KHNP’s 24 trillion won ($18 billion) nuclear power deal with the Czech Republic, where KHNP was selected as the preferred bidder. The agreement outlines plans for KHNP and Westinghouse to collaborate on European nuclear projects while promoting Korean standard nuclear reactors in other markets, such as the Middle East.
South Korea’s Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs signed an MOU on “Principles Concerning Nuclear Exports and Cooperation” on Jan. 8. This agreement finalizes a provisional understanding reached in November.
The MOU also paves the way for resolving a long-standing dispute between KHNP and Westinghouse over intellectual property rights. Westinghouse filed a lawsuit against KHNP in October 2022, alleging that its original technology had been improperly used in Korean nuclear power plants.
Under the terms of the MOU, KHNP and Westinghouse have agreed not to raise further objections regarding KHNP’s Czech Republic project, where the final contract is set to be signed in March, according to sources familiar with the matter on Jan. 9. This agreement removes a major hurdle in Korea’s nuclear exports. Westinghouse objected to KHNP’s selection as the preferred bidder for two new nuclear reactors in the Czech Republic and claimed ownership of core nuclear reactor technology. The dispute raised concerns about potential disruptions to future nuclear export deals. Despite being 100% owned by Canadian private equity firm Brookfield (51%) and uranium company Cameco (49%), Westinghouse remains subject to U.S. government policy due to its status as a nuclear energy company.
“KHNP has argued that its technology was sufficiently localized enough to avoid intellectual property rights issues, but there were growing concerns that a prolonged litigation could hinder future nuclear export deals,” said an industry insider. “Resolving the dispute with Westinghouse was considered critical to securing additional contracts in the future.”
