KEPCO CEO: "$2 Billion Westinghouse Royalty Is an Upper-Limit Guideline"

▲ Kim Dong-cheol (left), president of Korea Electric Power Corporation (KEPCO), and Kim Hoe-cheon, president of Korea Hydro & Nuclear Power (KHNP), attend a parliamentary audit held by the Trade, Industry, Energy, SMEs and Startups Committee at the National Assembly on the 12th.

Regarding criticisms that constructing Korean-style nuclear power plants in the United States as part of a U.S. investment project would require paying U.S. nuclear firm Westinghouse 2 billion dollars, or approximately 2.67 trillion won, per reactor in technology royalties, Korea Electric Power Corporation (KEPCO) President Kim Dong-cheol explained that this is an "upper-limit guideline."

During the National Assembly Trade, Industry, Energy, SMEs and Startups Committee's parliamentary audit today (the 12th), when People Power Party lawmaker Park Sung-min asked whether he was aware that the technology fees, service fees, and nuclear fuel costs to be paid to the government and Westinghouse had been adjusted to the level of 2 billion dollars per reactor, President Kim replied, "2 billion dollars is the upper limit."

President Kim explained that the technology royalties paid to Westinghouse during the past export of the Dukovany nuclear power plant in the Czech Republic were less than 175 million dollars per reactor.

When lawmaker Park pointed out whether the conditions for the nuclear power plant construction project in the United States are more disadvantageous compared to the Dukovany nuclear plant contract, which had been criticized as a "traitorous contract," President Kim stated, "We did our best in negotiating the compromise agreement with Westinghouse."

He added, "When we conduct detailed nuclear power plant contract negotiations with Westinghouse in the future, we will negotiate within the scope of the compromise agreement."

Regarding the decision to acquire a 5 to 10 percent stake in Westinghouse, he emphasized, "Securing a stake will improve our relationship with Westinghouse and smooth relations with the U.S. government, which will help us advance into the U.S. and third-country markets in the future," adding, "Whether to acquire the stake and its scale will be handled within the most reasonable scope possible."

(Photo: Yonhap News)

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