0
This image was generated by AI.

As the South Korean government pushes ahead with final-stage negotiations to acquire a stake in U.S. nuclear firm Westinghouse, major domestic companies including SK Group are reportedly considering joining the investment.

Industry analysts estimate the investment could reach up to 4 trillion won. Currently, efforts led by Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP) are underway to secure a 5% to 10% stake in Westinghouse. The government envisions bringing private companies into the equity purchase to serve as a driving force for entering the U.S. nuclear energy market.

According to relevant ministries and the business community on the 14th, SK Group is reportedly weighing participation as a primary investor in the consortium to acquire the Westinghouse stake. As South Korea and the U.S. recently discussed plans to build eight nuclear power plants in the U.S. worth $120 billion during investment talks, attention is also focusing on South Korean companies participating in the nuclear ventures.

SK Group has been expanding its business footprint in the U.S., centered on semiconductors and artificial intelligence (AI) data centers. With the growth of the AI industry heightening the importance of stable power supplies, the group seeks to explore new business opportunities in the nuclear sector. An SK Group official noted, "We are reviewing various options, but nothing has been specifically decided."

Nuclear-related companies including Samsung C&T, Hyundai E&C, and Doosan Enerbility are also being mentioned as potential candidates to join the consortium. However, whether these companies will actually participate in the investment remains unconfirmed.

The government had previously proposed that domestic nuclear engineering, procurement, and construction (EPC) and equipment suppliers take part in acquiring the Westinghouse stake. Final decisions by each company, their investment amounts, and terms of investment have not yet been finalized.

In a background briefing on strategic investments in the U.S. held at the Government Complex Seoul on the 22nd of last month, Minister of Trade, Industry and Energy Kim Jung-kwan stated, "The equity share is being coordinated at around 5% to 10%." He added, "Considering financial burdens, KEPCO and KHNP will participate at a symbolic level, with domestic private enterprises joining in."

However, the government maintains that actual investments depend on each company's commercial judgment. A ministry official said, "Following the announcement of the nuclear framework, we briefed domestic nuclear-related companies on the outcomes of discussions regarding the stake acquisition." The official added, "Going forward, the South Korean investment delegation will be operated under corporate leadership, including KEPCO and companies expressing intent to acquire a stake."

The discussions on acquiring the stake are also closely tied to expanding South Korea-U.S. nuclear cooperation. During negotiations on investments in the U.S., plans were discussed to construct a total of eight reactors, including up to two South Korean-designed APR1400 reactors and six Westinghouse AP1000 reactors. The settlement agreement (SA) over intellectual property disputes signed last year between KHNP, KEPCO, and Westinghouse had acted as a barrier to South Korean-designed reactors entering the U.S. market. However, under this cooperative framework, certain exceptions were reportedly arranged to allow the construction of South Korean-designed nuclear reactors in the U.S.

                                                                                                              Han Dae-ui 

                                                                                                             Kim So-young