KHNP denied access to power plant projects in N. America, Europe under Westinghouse deal: sources
Under the agreement signed in January, the KHNP is only allowed to sign fresh deals in the Philippines, Vietnam, Kazakhstan, Morocco, Egypt, Brazil, Argentina, Jordan, Turkey, the United Arab Emirates, Saudi Arabia and South Africa, according to the sources.
But the Korean company is banned from bidding for new nuclear power plant deals in North America and Britain, Japan, Ukraine and EU nations, except for the Czech Republic.
The KHNP and Westinghouse signed the settlement deal in January this year after the latter accused the Korean firm of infringing on its IP, claiming the KHNP's APR 1000 and APR1400 plant designs utilize its licensed technology.
The deal removed a major hurdle for the KHNP-led Korean consortium to sign a final contract in June, with an estimated value of 26 trillion won, to build two nuclear power units in the Czech Republic.
The Czech deal, which marked South Korea's first overseas nuclear power plant contract since 2009, was initially expected to open new doors for Korean firms seeking business opportunities in Europe.
Earlier in the day, KHNP President Whang Joo-ho confirmed his company has closed operations in Poland amid speculations that its deal with Westinghouse influenced the decision.
Poland is the fourth European country where the KHNP confirmed its business closure, following Sweden, Slovenia and the Netherlands.
"After the new Polish administration took office ... the country decided to drop the state-owned enterprise projects (in the nuclear power sector) ... and that is why we withdrew our business there," Whang said during a meeting with the parliamentary industry committee.
It also reportedly includes a condition requiring Korean companies to pass the latter's technology independence verification when independently developing and exporting next-generation nuclear reactors.
The 50-year deal is also said to include provisions requiring the KHNP to sign a goods and services purchase contract worth about $650 million with Westinghouse per export of a single nuclear reactor, and to pay $175 million per reactor in technology licensing fees.
Asked whether the KHNP believes the deal with Westinghouse was fair, Whang said, "As the party accepting the terms, I cannot say it was fair," but added, "I believe it is something we can endure and still make a profit from."
Whang refused to confirm the details of the deal, citing a nondisclosure agreement.
Earlier in the day, the presidential office said it has ordered the Ministry of Trade, Industry and Energy to review whether the deal was signed under due process. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
an hour ago
- Korea Herald
HD KSOE acquires Doosan Vina at W290b
Shipbuilding giant looks to bolster production of independent tanks to maximize profitability of eco-friendly vessels HD Korea Shipbuilding & Offshore Engineering, an intermediary holding firm of Korean shipbuilding conglomerate HD Hyundai, said Wednesday that it has signed a deal with Doosan Enerbility to acquire the latter's Vietnamese company, Doosan Vina, in order to expand its lineup of eco-friendly vessels. According to HD KSOE, it agreed to buy out Doosan Enerbility's 100 percent stake in Doosan Vina at a price of 290 billion won ($207 million). Doosan Enerbility said it will utilize the 290 billion won it secures from the deal to expand facilities in core businesses, such as small modular reactors and gas turbines, which are seeing rapid growth in demand amid the increasing need for energy and carbon reduction across the globe. Doosan Vina, which was established in 2006 in the Dung Quat Economic Zone of Quang Ngai Province, Central Vietnam, has manufactured boilers for thermal power plants, port cranes and modules for liquefied natural gas plants. HD KSOE plans to carry on the existing business of Doosan Vina while utilizing the newly acquired site as a regional foothold to build independent tanks and port cranes for the Asian region. An independent tank is a key component in eco-friendly vessels such as LNG-fueled vessels, liquefied petroleum gas carriers, ammonia carriers and liquefied carbon dioxide carriers. 'This deal was able to be finalized as it fulfills the interests of both companies, backed by the government's cooperation and support,' said an HD KSOE official. 'As we have expanded our production capacity of eco-friendly equipment, we plan to maximize profitability by bolstering our lineup of globally competitive eco-friendly vessels."
Korea Herald
2 hours ago
- Korea Herald
BlueOval SK rolls out 1st EV battery product
SK On-Ford joint battery venture in Kentucky seeks customer diversification amid lagging EV growth BlueOval SK, a 50:50 joint venture between Korean battery maker SK On and American automaker Ford, has finally begun commercial production of electric vehicle batteries at its first Kentucky plant amid the prolonged stagnation of the EV market growth. According to BlueOval SK on Tuesday, its first-ever battery to be delivered to Ford rolled off the assembly line at the Kentucky 1 factory in Glendale. The batteries from this production will power the American automaker's electric pickup truck, the F-150 Lightning. 'We are proud to build batteries at our Kentucky 1 facility that will power next-generation electric vehicles,' BlueOval SK CEO Michael Adams said. 'The start of production is a significant milestone that strengthens our position in the electric vehicle battery market.' BlueOval SK added that the Kentucky 1 plant will also produce batteries for Ford's current E-Transit electric van. SK On and Ford joined hands to set up BlueOval SK in 2022 as they announced a $11.4 billion investment to build three battery production facilities: two in Glendale, Kentucky and one in Stanton, Tennessee. 'Today, Kentucky marks a historic milestone four years in the making as production officially begins at two of the largest battery plants in the world, set to deliver EV batteries that will transform the automotive industry and the future of our commonwealth,' said Kentucky Governor Andrew Beshear. 'This remains the single largest investment in the history of our state, and it sparked a surge of new investment and job announcements that placed Kentucky at the center of EV-related innovation. I am grateful to Ford and SK On leaders for believing in Kentucky and our workforce.' The joint venture's first commercial production has been delayed due to the EV market's slower-than-anticipated growth rate over the last few years. Ford announced earlier this month that it will delay the launch of two new EVs — next-generation models of the F-150 Lightning and E-Transit — to 2028 but instead shift focus to smaller, more affordable cars to launch a midsize, four-door electric pickup in 2027. With the stalling EV demand, Adams, CEO of BlueOval SK, said in an interview with Bloomberg that both SK On and Ford are looking for opportunities for new business and securing new clients is 'fairly high.' There have been rumors that BlueOval SK was nearing a contract to sell batteries to Nissan, but no confirmations were made.
Korea Herald
2 hours ago
- Korea Herald
Prices continue to rise for popular summer dishes samgyetang, naengmyeon: data
The prices for samgyetang and naengmyeon in Seoul rose in July compared to June, continuing an upward trend that has persisted in recent years, government data showed Wednesday. In July, the average price for a serving of samgyetang or naengmyeon cost 17,923 won and 12,423 won, respectively, up from 17,654 won and 12,169 won the previous month, according to the Korea Consumer Agency's price information portal. Samgyetang prices have been on the upward trend in recent years, surpassing 14,000 won in June 2017, 15,000 won in July 2022, 16,000 won in January 2023 and 17,000 won in July 2024. Naengmyeon also rose consistently: prices surpassed 10,000 won a bowl for the first time in April 2022, 11,000 won in June 2023 and 12,000 won in December 2024. Both dishes are popular in Korea and especially enjoyed in the summertime. July 20 in particular marked this year's "chobok," the first of three especially hot days in summer according to Korean tradition. Samgyetang is often eaten on "bok" days, as the warm broth of the chicken soup is believed to help stabilize the body in the extreme heat. The two dishes are among the eight major dining options in South Korea, for which the KCA compiles monthly average prices. The other six are bibimbap, gimbap, jajangmyeon, kalguksu, kimchi-jjigae and samgyeopsal. The price for a serving of samgyeopsal and bibimbap also inched up to 20,639 won and 11,538 won, respectively, while kimchi-jjigae rose slightly to 8,577 won per serving. The price for the other three dishes remained the same from June to July.
