South Korea-Westinghouse Deal Restricts Nuclear Exports, Spurs Industry Review

South Korea's recent agreement with U.S. nuclear company Westinghouse, intended to resolve a longstanding intellectual property dispute, has sparked significant controversy and financial concerns. The deal restricts Korean nuclear firms from competing in major markets including North America, most of Europe, Japan, and Ukraine, limiting their opportunities to emerging markets such as Southeast Asia, the Middle East, Africa, and parts of Latin America. Additionally, South Korean companies must pay hefty royalties and purchase obligations estimated at hundreds of millions of dollars per reactor exported, with approval required from Westinghouse for any future reactor designs over the next 50 years. This has led to a sharp decline in South Korea’s nuclear-related stocks and raised doubts about the profitability and competitiveness of Korean firms in global nuclear projects, including a $26 billion contract in the Czech Republic. Despite these concerns, supporters argue that ending the litigation with Westinghouse was a pragmatic step to maintain South Korea’s presence in the growing global nuclear market. The agreement is also expected to influence diplomacy, with nuclear cooperation slated for discussion at the upcoming Korea-US summit between Presidents Lee Jae Myung and Donald Trump, where KHNP plans to enter the U.S. market through a joint venture with Westinghouse.