South Korea’s ambitions to secure the Czech Dukovany nuclear power plant project have come at an unexpectedly steep price. It has now been revealed that the Yoon Suk-yeol administration struck an unequal contract with U.S. nuclear giant Westinghouse Electric Company (WEC), raising alarms over the erosion of Korea’s nuclear sovereignty and long-term competitiveness.
A 50-Year Unequal Contract That Undermines Sovereignty
According to documents obtained by the Seoul Economic Daily (“Compromise Agreement among KHNP, KEPCO, and WEC”), South Korea agreed to terms that critics call one-sided and humiliating. Under this deal:
For every reactor exported, Korea Hydro & Nuclear Power (KHNP) must grant Westinghouse $650 million in goods and services contracts (approx. 900 billion KRW).
An additional $175 million (approx. 240 billion KRW) must be paid to Westinghouse as a technology usage fee.
Even for next-generation nuclear technologies like SMRs (Small Modular Reactors) developed independently by Korea, exports cannot proceed without Westinghouse’s prior technical verification.
This arrangement effectively gives Westinghouse a veto power over Korea’s nuclear exports and secures them decades of guaranteed revenue.
Industry Backlash: “Killing the Goose That Lays Golden Eggs”
Experts in the nuclear sector describe the deal as “gutting Korea’s golden goose”. By guaranteeing Westinghouse 50 years of work in exchange for securing the Czech project, Korea is seen as giving away:
Industrial competitiveness in the global nuclear market.
Sovereignty over core nuclear technologies.
Billions in revenue streams that would otherwise go to domestic companies.
The agreement also ensures that Westinghouse monopolizes fuel supply for reactors in Czechia and Saudi Arabia (100%) and controls 50% of supply in other regions, sidelining Korean suppliers like Doosan Enerbility and KEPCO Nuclear Fuel.
The Hidden Costs Behind Each Reactor
To put this in perspective, KAIST Professor Jung Yong-hoon noted:
“The construction cost of a nuclear plant is around 10 trillion KRW ($7.4B). If nearly 1 trillion KRW per unit is promised to a foreign company, this is a major loss.”
Another industry expert added:
“Most nuclear construction costs go to labor and building. Core systems represent only about one-third. Yet Korea has to share even that one-third with Westinghouse. This severely undermines our ability to secure core equipment competitiveness.”
Key systems such as the Nuclear Steam Supply System (NSS) and Man-Machine Interface Systems (MMIS)—traditionally the pride of Korea’s domestic nuclear industry—are now effectively reserved for Westinghouse contracts.
Why This Deal Matters
The $24 billion Czech Dukovany nuclear project was a strategic target for Korea. Winning it was hailed as a major victory for the Yoon administration. However, the hidden price tag—ceding half a century of nuclear technology autonomy—has sparked heated debate.
This agreement could:
Limit Korea’s independent SMR export potential.
Reduce its share in the global nuclear supply chain.
Entrench Westinghouse’s dominance in critical reactor technologies and nuclear fuel markets.
Conclusion: A Pyrrhic Victory
While the Yoon government secured the Czech contract, it may have done so at the cost of Korea’s long-term energy independence and industrial competitiveness. The 50-year contract ensures Westinghouse not only profits from every Korean nuclear export but also exerts significant control over future technologies.
For South Korea, what looked like a diplomatic and industrial triumph could ultimately be remembered as a humiliating concession of nuclear sovereignty.
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