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Hwang Ki-yeon (far right), chairman and president of the Export-Import Bank of Korea, poses for a commemorative photo with President Lee Jae Myung (second from right), Turkish President Recep Tayyip Erdogan (second from left) and Necati Yamaç, CEO of Türkiye Nuclear Energy Company, at a memorandum of understanding (MOU) signing ceremony at Cheong Wa Dae on Nov. 3. / Courtesy of the Export-Import Bank of Korea

The Export-Import Bank of Korea (KEXIM) is working to develop financing measures to support Team Korea in its bid to secure a new nuclear power plant project in Türkiye. Given the large amount of long-term financing required for nuclear power projects, the bank plans to examine financing structures and the feasibility of financial support from the early stages of the project.

KEXIM announced on Nov. 4 that it had signed an MOU on cooperation in nuclear power project financing with Türkiye Nuclear Energy Company on Nov. 3 at Cheong Wa Dae, in the presence of the leaders of South Korea and Türkiye.

The agreement expands cooperation into the financial sector, building on an MOU on nuclear energy cooperation signed between Korea Electric Power Corp. (KEPCO) and Türkiye Nuclear Energy Company during the bilateral summit in November last year. KEPCO is currently conducting a preliminary feasibility study for the Sinop nuclear power plant project in Türkiye.

The Sinop project is a large-scale undertaking to construct and operate four Korean-designed APR1400 nuclear reactors in the Sinop region of northern Türkiye. Team Korea, comprising the South Korean government, KEPCO and domestic equipment suppliers and construction companies, is continuing discussions with the aim of securing the main project contract.

Under the agreement, KEXIM and Türkiye Nuclear Energy Company will cooperate on financial model analysis, the development of financing structures and the exchange of information to assess the feasibility of financial support for new nuclear power plants. They also plan to establish a working group on nuclear power project financing to jointly examine financing measures suited to the project's characteristics.

Nuclear power projects require substantial upfront investment during construction and take a long time to recover the investment, making stable financing structures essential. KEXIM therefore plans to participate in designing the financing structure from the early stages of the project to secure a competitive financing package needed to win the main project contract.

Türkiye is seeking to secure 7.2 gigawatts (GW) of nuclear power generation capacity by 2035 and 20 GW by 2050 to strengthen energy security and achieve carbon neutrality.

Drawing on its experience in financing the Barakah nuclear power plant in the United Arab Emirates, KEXIM plans to assess the feasibility of financial support and major risk factors for the project. It also aims to develop a competitive financing structure to support Korean companies' entry into Türkiye's nuclear power market.

"Securing major overseas nuclear power plant contracts depends not only on technological capabilities but also on the ability to arrange large-scale, long-term financing," Hwang said.

"We will actively support Team Korea's bid for the Turkish nuclear power plant project by developing optimal financing solutions."

                                                                                                          Han Sang-wook