Czech Nuclear Deal: Korea Does the Work, Westinghouse Gets the Money!

 

When Patents Collide: Westinghouse, KHNP, and the Price of Nuclear Cooperation

In October 2022, U.S. nuclear giant Westinghouse filed a lawsuit in the District Court for the District of Columbia, seeking an injunction to stop Korea Hydro & Nuclear Power (KHNP) and its parent company, KEPCO, from exporting the APR1400 nuclear reactor design. Westinghouse argued that the APR1400 contains intellectual property licensed from them and that any international transfer of the design must be subject to its prior approval.

In response, KHNP countersued, arguing that under the U.S. Atomic Energy Act, enforcement authority lies exclusively with the U.S. Attorney General—not private companies. The Korean side asserted that Westinghouse lacked legal standing to bring the case.

In September 2023, the D.C. District Court sided with KHNP and dismissed the lawsuit. However, the arbitration panel’s final ruling is not expected until the end of 2025.

Quiet Settlement, Loud Implications

In the wake of the dismissal, Westinghouse and the Korean parties announced a global settlement. The terms remain confidential, but Westinghouse confirmed it would drop all legal proceedings and move forward in cooperation with KEPCO and KHNP.

“This agreement lays a solid foundation for joint development of new reactor projects globally,” the company said in a statement. It was a diplomatic way of saying: the legal roadblock is gone—let’s get back to business.

Yet beneath the surface, the settlement reveals stark asymmetries.

Cash for Control?

Westinghouse CEO Patrick Fragman expressed optimism: “We are pleased to have reached this agreement… The world is calling for more baseload power, and together we can deliver.”

KEPCO CEO Kim Dong-cheol highlighted the return to a "50-year tradition of cooperation," and KHNP President Hwang Joo-ho emphasized the potential for a “closer partnership.” But for critics, the money trail tells a different story.

According to industry sources, KHNP agreed to pay $150 million per export project as an IP fee and a total of $800 million to Westinghouse. That kind of cash—while proportionally small relative to multibillion-dollar nuclear deals—can severely shrink profit margins. Worse, KHNP is now reportedly locked into using Westinghouse fuel rods for future reactor builds.

Critics argue that Korea conceded too much, too quickly, especially to secure the Czech Republic’s nuclear tender in August 2024. The APR1000, Korea’s export model, is based on Westinghouse-originated technology—something KHNP had previously downplayed by branding it a “domestic innovation.” The payments now undermine that narrative, weakening Korea’s claim to technological independence and giving the U.S. stronger grounds to regulate future exports.

KHNP responded tersely: “We are bound by a non-disclosure agreement with Westinghouse and cannot reveal the contract’s specifics.”

Meanwhile, Westinghouse Reloads

While KHNP paid up, Westinghouse kept expanding. In 2023, the company was acquired by Canada’s nuclear fuel supplier Cameco, in partnership with Brookfield Asset Management and Brookfield Renewable Partners.

Cameco CEO Tim Gitzel was quick to celebrate: “This deal positions us to deliver world-class reactor technology, engineering, and fuel services to the global market… As more than 100 companies across 30 countries have pledged to triple nuclear capacity by 2050, demand is undeniable.”

The timing wasn’t accidental. Just days before, the U.S. and South Korean governments signed a Memorandum of Understanding to deepen civil nuclear cooperation. The Westinghouse–KHNP deal, in that light, looks less like a resolution and more like a strategic reallocation—money flowing out of Korea, technology acquisitions flowing in.

A High-Stakes “Partnership”

U.S. Energy Secretary Jennifer Granholm welcomed the agreement, touting its potential to “unlock hundreds of billions of dollars in collaborative projects” and create jobs across the nuclear sector. She framed it as a triumph for nonproliferation and international standards.

But many in Korea wonder: was this a partnership, or a one-sided deal?

KHNP has since withdrawn from bidding on nuclear projects in Sweden, Slovenia, and the Netherlands. Officially, the company says it’s focusing on SMR development and the Czech project. Industry watchers aren’t so sure—they see a quiet retreat shaped by early 2024’s IP settlement, which handed Westinghouse outsized leverage in Europe.

What the Patents Say

The technological imbalance is stark. A simple patent search reveals the APR1000’s IP links back to Westinghouse. KHNP’s patents cite Westinghouse’s prior filings and rest on them. In essence, Korea holds dependent patents that cannot operate independently—functionally subordinate to the original American designs.

In short, KHNP paid to settle, paid to export, and may now be paying to stay in the game.

From an industry perspective, the Czech win might have been a Pyrrhic victory—Korea scored the project, but the lion’s share of long-term gains could still be flowing to Pittsburgh, not Seoul.