Korea says US nuclear project could take shape around 2028
In short
South Korea's industry ministry presented details of a nuclear framework agreed with the United States that covers eight large reactors in the US at a total of $120bn, six using Westinghouse's AP1000 and two using Korea's APR1400. Ministry official Lee Sang-eun said the business could be concretised "somewhere in the US" around 2028, a year with a US presidential election. Sites, schedules and the amount Korea must pay Westinghouse still require further negotiation, the ministry said.
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South Korea's government presented the details of a nuclear framework it agreed with the United States on 1 October, saying a plan to build eight large reactors in the US could take concrete shape around 2028. Lee Sang-eun, director of the nuclear export promotion division at the Ministry of Trade, Industry and Energy, told the first "Nuclear Export Leaders Forum" at the Korea Press Center in Seoul on 7 October that the business could be concretised "somewhere in the US" around 2028. Seoul Economic Daily reported Lee linked the timing to the US presidential election that year, saying the US administration would want to show results before the vote. [ 1 , 2 , 3 ]
The framework covers eight large reactors for a total of $120bn, six using Westinghouse's AP1000 and two using Korea's APR1400, the ministry said. Construction order is two AP1000 units first, then two APR1400 and two AP1000, then two more AP1000, and the framework states that the gap between the first and second stages of design, construction and procurement contracts should be kept within six months. Cost per two units is put at $25bn plus $5bn in contingency. The ministry said that if Korea meets the schedule and cuts costs, unused contingency would still count as fulfilling the investment. [ 1 , 2 ]
The reactors are to be built on US federal land. Asia Economy reported Korea may ask to redesignate sites proposed by the US and that equal, non-discriminatory criteria must apply to Westinghouse and Korean reactors. Seoul Economic Daily reported US Commerce Secretary Howard Lutnick named Ohio, South Carolina, Tennessee and Kentucky as candidate regions on 30 September. Both outlets said specific sites and construction schedules still require further negotiation, and Asia Economy reported that concrete project proposals must then go through procedures under the Korea-US Strategic Investment Act before a decision is taken. [ 1 , 2 ]
The ministry said a cap had been set on technology fees, services and fuel payments to Westinghouse but did not disclose the amount, according to Seoul Economic Daily, which reported Westinghouse has asked for a higher technology royalty than the one agreed last year. Asia Economy reported the cap was understood to be $2bn per APR1400, and that Cameco, which holds 49% of Westinghouse, expected about that value per unit as compensation for a "one-time exemption". Under the existing agreement between KEPCO, KHNP and Westinghouse, Korea pays $107m in royalties and $650m in goods and services per unit exported abroad, Asia Economy reported; for US exports, fuel supply rights are added. The framework includes amending that agreement to allow two APR1400 units in the US as an exception. [ 1 , 2 ]
Korea is to send $10bn to the US by 31 December for pre-orders of long-lead items, Asia Economy reported, and the government expects the investment to return orders to Korean suppliers; the framework includes preferring or recommending Korean companies, it said. Chosun Ilbo reported the government plans to use the US project as a base to expand nuclear exports and to help small and mid-sized Korean firms enter overseas nuclear supply chains. [ 1 , 3 ]
Why it matters
The framework is the route by which Korea's APR1400 could enter the US market, which the existing agreement with Westinghouse had ruled out. Timing is tied by both outlets to US politics and to unresolved questions on funding, licensing and fees, so the export gains for Korean suppliers depend on talks still under way. The ministry also says it will use the project to bring small and mid-sized Korean firms into overseas nuclear supply chains.
Key facts
- Korea and the United States agreed a $120bn nuclear framework on 1 October covering eight large reactors in the US: six AP1000 and two APR1400 units. [ 1 , 2 ]
- Construction order is two AP1000 units first, then two APR1400 and two AP1000, then two more AP1000; the framework says the EPC contract gap between the first and second stages should be kept within six months. [ 1 , 2 ]
- Industry ministry official Lee Sang-eun said the business could be concretised somewhere in the US around 2028. [ 1 , 2 , 3 ]
- Project size is put at $25bn in construction cost plus $5bn in contingency per two units, and the ministry said unused contingency would still count toward the investment. [ 1 , 2 ]
- Reactors are to be built on US federal land; US Commerce Secretary Howard Lutnick named Ohio, South Carolina, Tennessee and Kentucky as candidate regions on 30 September. [ 2 ]
- The ministry said a cap was set on technology fees, services and fuel payments to Westinghouse, and Seoul Economic Daily reported the amount was not disclosed. [ 1 , 2 ]
- Korea is to send $10bn to the US by 31 December for pre-orders of long-lead items, according to Asia Economy. [ 1 ]
- The government plans to support small and mid-sized Korean companies entering overseas nuclear supply chains. [ 3 ]
Confirmed by several sources
- The Ministry of Trade, Industry and Energy held the first "Nuclear Export Leaders Forum" at the Korea Press Center in Seoul on 7 October and presented the Korea-US nuclear framework. [ 1 , 2 , 3 ]
- Ministry official Lee Sang-eun said the US nuclear business could be concretised around 2028. [ 1 , 2 ]
- The framework covers eight large reactors in the US, six AP1000 and two APR1400, at a total of $120bn. [ 1 , 2 ]
- Construction order and the six-month target gap between the first and second EPC contract stages are set out in the framework. [ 1 , 2 ]
- The ministry said a cap was set on fees payable to Westinghouse for technology, services and fuel. [ 1 , 2 ]
- Sites and construction schedules are not yet decided and require further negotiation. [ 1 , 2 ]
Still unclear
- The amount of the cap on payments to Westinghouse. Asia Economy reported the cap was understood to be about $2bn per APR1400, based on Cameco's expectation of compensation for a one-time exemption, while Seoul Economic Daily said the ministry did not disclose the figure.
- Which US sites will host the reactors and when construction will start. Both outlets say sites and schedules require further negotiation; the states named by the US commerce secretary are candidates, not a decision.
- Whether the projects proceed at all. Asia Economy reported that concrete project proposals must be made and procedures under the Korea-US Strategic Investment Act followed before a decision.
- Korea's planned $10bn payment to the US by 31 December. Reported only by Asia Economy.
What local media are saying
Timeline, local time
- US Commerce Secretary Howard Lutnick names Ohio, South Carolina, Tennessee and Kentucky as candidate regions for the reactors. [ 2 ]
- Korea and the United States agree the $120bn nuclear framework. [ 1 ]
- The industry ministry presents the framework at the first Nuclear Export Leaders Forum at the Korea Press Center in Seoul, in the morning. [ 1 , 2 , 3 ]
- Asia Economy publishes its report on the forum. [ 1 ]
- Seoul Economic Daily publishes its report. [ 2 ]
- Chosun Ilbo publishes its report. [ 3 ]
- Korea is to send $10bn to the US by 31 December for long-lead item pre-orders. [ 1 ]
- The business is expected to be concretised somewhere in the US around 2028. [ 1 , 2 ]