South Korea Orders Review of Westinghouse Nuclear Deal Amid Favorable Terms Concerns

South Korea will review a deal with Westinghouse Electric Co. to resolve a nuclear power intellectual property dispute. The agreement requires Korea Hydro & Nuclear Power to pay $825 million for each exported reactor. The review aims to verify that the negotiations and contract signing followed national principles and procedures. This move could impact South Korea's plans to become a major nuclear equipment exporter.

South Korea has initiated a review of its agreement with Westinghouse Electric Co. to resolve a nuclear power intellectual property dispute. The review aims to verify that the negotiations and contract signing adhered to national principles and procedures [1]. The agreement, signed earlier this year, requires Korea Hydro & Nuclear Power (KHNP) to pay Westinghouse $825 million for each exported reactor, including the purchase of services, goods, and technology royalties [1].

The review was ordered following reports that the deal's terms could be unfavorable for South Korea. Nuclear-related stocks in Seoul tumbled on the report [2]. The move comes as South Korea seeks to establish itself as a major nuclear equipment exporter, with governments around the world turning to nuclear technology to reduce fossil fuel dependence and meet green goals [2].

In 2022, Westinghouse filed a lawsuit in the US to prevent KHNP and Korea Electric Power Corp. from sharing nuclear technology to which it held rights. The companies resolved the dispute in January with the current agreement [3].

The review is expected to assess the terms of the agreement, including the $825 million payment per exported reactor, and ensure that the contract aligns with national interests. The outcome of the review could impact South Korea's plans to become a major nuclear equipment exporter, potentially opening or closing doors for future deals.

References:
[1] https://koreajoongangdaily.joins.com/news/2025-08-19/business/industry/Critics-raise-concerns-over-Westinghouse-deals-impact-on-Koreas-nuclear-industry/2379046
[2] https://www.bloomberg.com/news/articles/2025-08-19/south-korea-orders-review-on-westinghouse-nuclear-power-deal
[3] https://www.koreatimes.co.kr/business/companies/20250819/govt-orders-probe-into-khnps-nuclear-deal-with-us-westinghouse