Contract with the US for Czech Nuclear Power Plant Bid: Poisonous vs. Opportunity Cost Secured

[Financial News] When our country exports nuclear power plants, it is revealed that over the next 50 years, we must provide goods and services worth about 1 trillion won per unit to Westinghouse in the United States and pay a technology usage fee of 240 billion won. Additionally, when exporting small modular reactors (SMRs) in the future, they must undergo verification by Westinghouse in the United States. There is a sharp divide between criticism that this is a humiliating contract and the evaluation that it was an inevitable measure for nuclear power plant export cooperation with the United States.
 According to the nuclear industry on the 19th, in January, Korea Hydro & Nuclear Power and Korea Electric Power Corporation, along with Westinghouse in the United States, agreed to purchase goods and services worth 650 million dollars (about 900 billion won) per unit and pay a technology usage fee of 175 million dollars (about 240 billion won) per unit whenever we export nuclear power plants. The contract period is known to be set for 50 years.
 At that time, Korea Hydro & Nuclear Power and Korea Electric Power Corporation were negotiating with Westinghouse to resolve intellectual property disputes ahead of the final contract for the construction of the new Dukovany nuclear power plant in the Czech Republic, and this content was included in the agreement. Both sides did not disclose specific details due to a mutual confidentiality agreement. The nuclear industry had previously speculated that the agreement conditions would include provisions for royalties and work amounting to trillions.
 Westinghouse, which failed to win the Czech nuclear power plant bid against Team Korea, argued that the latest Korean nuclear power plant APR1400, which Korea Hydro & Nuclear Power and Korea Electric Power Corporation intended to supply to the Czech Republic, was based on its original technology. Westinghouse did not cooperate with the US Department of Energy's export controls, separate from legal proceedings.
 Our country must obtain permission from the US government when exporting or transferring nuclear power plants with original technology owned by the United States overseas. Eventually, in January, Korea Hydro & Nuclear Power and Korea Electric Power Corporation resolved this obstacle by agreeing with Westinghouse on intellectual property rights. Subsequently, Team Korea signed the final contract for the construction of two Dukovany nuclear power plants in the Czech Republic last June. Westinghouse had also taken a significant portion of the work during the construction of the Barakah nuclear power plant in the United Arab Emirates (UAE), citing intellectual property infringement.
 As a result, some criticize that our country rushed into a humiliating contract to expedite nuclear power plant exports. It is because 25 trillion won is expected to be invested in two nuclear power plants, and considering the localization rate of 60% required by the Czech government and Westinghouse's 1 trillion won equipment supply, the share our companies will take is expected to be around 8 trillion won.
 On the other hand, there is also an opinion that it was an unavoidable choice. It is because, while Westinghouse drags on with lawsuits, other nuclear power plant bids could face obstacles. Also, considering the total contract amount, the 240 billion won intellectual property usage fee is small, and the 900 billion won goods and services purchase contract is necessary even without Westinghouse, so it is not significant.
 A nuclear industry official said, "Considering the total contract amount, the money paid to Westinghouse is not a large sum," and "Considering the opportunity cost lost during the lawsuit with the United States, it is not a bad result."
leeyb@fnnews.com Lee Yubom Reporter