Eight US nuclear reactors open doors for Korean firms under new framework

South Korea's nuclear power industry and academic community have hailed a newly announced Korea-US nuclear framework — under which eight large reactors will be built on American soil — as the centerpiece of Seoul's strategic investment push into the United States and a landmark in bilateral energy cooperation. The deal carries added historical weight: South Korea first acquired nuclear technology in 1978 by building the Gori Unit 1 reactor based on Westinghouse designs, and nearly five decades later the country is now poised to export its own Korean-designed reactors back to the United States.

The government said it will monitor follow-up steps under the framework and provide comprehensive support to help domestic nuclear firms secure a role in the project.

Under the Korea-US nuclear framework, up to $120 billion drawn from a strategic investment fund will finance the construction of eight large reactors in the United States, according to the government and industry officials Friday. Two will use the Korean APR1400 design and six will use Westinghouse's AP1000. Construction costs are estimated at $100 billion, with a $20 billion contingency reserve.

Once construction of the eight reactors gets under way in earnest, Korean companies are expected to expand their footprint in the US market significantly. Because virtually no American firms currently possess the required construction capacity, the project will inevitably rely on Korean companies — including Korea Electric Power Corporation, Korea Hydro & Nuclear Power, Doosan Enerbility, Daewoo Engineering & Construction and Hyundai Engineering & Construction. There is also a strong possibility that a Team Korea consortium will pursue the work as a full engineering, procurement and construction (EPC) turnkey contract covering design, procurement and construction in a single package.

A successful US entry is also seen as a major competitive asset for winning nuclear contracts in third countries. Rising global electricity demand and the push toward decarbonization have prompted many nations — including those in Eastern Europe as well as India, Saudi Arabia, Vietnam and Egypt — to pursue nuclear expansion. South Korea's overseas track record is currently limited to the Barakah plant in the UAE and the Dukovany project in the Czech Republic, but a strong showing in the United States could significantly improve its prospects elsewhere. Daewoo Engineering & Construction, which won the Czech contract, has already reorganized internally for the push, merging its overseas business and nuclear divisions into a new Global Infrastructure Division.

Korea Electric Power Corporation and Korea Hydro & Nuclear Power, the two pillars of Team Korea, both issued welcoming statements Friday, saying the framework is expected to mark "a new milestone in bilateral energy cooperation."

Korea Electric Power Corporation said it plans to "contribute to the successful advancement of the Korea-US nuclear framework, drawing on experience accumulated through the domestic power industry and the Barakah nuclear project in the UAE." It added that the US entry of the APR1400 "is expected to showcase the technological capabilities and project management competence of Korea's nuclear industry, and to contribute to expanding Korean nuclear firms' access to the US market and their participation in global supply chains."

The utility added that it "will do its utmost to rigorously manage economic viability and project risk throughout the process, and to work closely with the government and domestic nuclear and energy companies so that this investment leads to stronger energy security for both countries and enhanced global competitiveness for Korea's nuclear industry."

Korea Hydro & Nuclear Power said it "welcomes the government's announcement of the strategic investment project and the nuclear framework," calling the announcement "highly significant in that it develops energy cooperation between the two countries into a concrete project and lays the groundwork for long-term cooperation in the nuclear sector."

It added that the framework "is expected to further strengthen the foundation for cooperation between the two countries' nuclear industries across a wide range of areas, including supply chains, construction and equipment," and said the opening of a pathway for the APR1400 export model to enter the US market "is a very meaningful achievement."

Korea Hydro & Nuclear Power said the development "will serve as a symbolic example of Korea's recognition as a country whose technology and project capabilities are acknowledged in the global nuclear market," and that "the framework is expected to become a key asset enabling our companies to enter third-country nuclear markets in the future."

The Korean Nuclear Society also issued a statement strongly welcoming the agreement, saying the Korea-US nuclear framework "marks the first step toward a long-held aspiration of the Korean nuclear community — the entry of Korean-designed reactors into the US market and the formation of a Korea-US nuclear industry alliance."

The society said South Korea "has accumulated full-cycle capabilities spanning design, equipment manufacturing, construction, commissioning, and operation and maintenance over nearly half a century, with a track record of completing nuclear projects on schedule at home and abroad." It added that combining the strengths of both countries "can reduce supply chain bottlenecks and project risks in US nuclear construction while boosting joint competitiveness in the global nuclear market."

The Ministry of Trade, Industry and Energy, which oversees nuclear exports, convened a joint public-private nuclear export planning committee Thursday afternoon at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to review follow-up measures. It was the first meeting held after the two governments announced their agreement on the nuclear framework as part of the broader strategic investment plan.

The ministry said that as soon as specific terms for the construction project are presented, state-owned nuclear companies, export finance institutions, contractors and equipment suppliers will quickly form a consultative body to handle proposal writing, implementation planning, bid preparation and licensing responses in a timely manner.

Kim Chang-hee, the ministry's nuclear strategy planning director, said the government "will provide all-out support to successfully advance nuclear construction in the United States on the strength of Korea's excellent nuclear capabilities and robust supply chain, and to further spread K-nuclear power globally."