K Nuclear Power Plant wins 24 trillion won jackpot... Intellectual property rights lawsuit with the U.S. remains a problem to be resolved - South Korean report

Korean nuclear power companies, including Korea Hydro & Nuclear Power, were selected as the preferred negotiating parties for the second phase of the Czech nuclear power plant project, which is worth 24 trillion won (about 2.71 trillion yen).
The industry's attention is now turning to the smooth conclusion of the contract, scheduled for March next year, and the next country to promote nuclear power projects.
The company has overturned the public's assessment that "K Nuclear Power Plant" had the advantage, and has almost completed the stages of receiving an order from the Czech nuclear power plant project, proving the capabilities of the company.
Only four countries (Russia, China, France, the United States, and South Korea) competed in the Western market, excluding Chinese and Russian businesses for security reasons.
It is expected that a certain amount of orders will be secured in the global market for new nuclear power plants, which is estimated at about 300 units. However, there are still some issues that need to be resolved in order to achieve substantial results.
The intellectual property (IP) litigation with rival US company Westinghouse Electric, which began when the company exported nuclear power plants to the United Arab Emirates (UAE) in 2009, is still ongoing.
The K Nuclear Power Plant also faces concerns about its business viability both at home and abroad, and these remain issues that the company must resolve. The most pressing issue to be resolved is the IP lawsuit against the US company Westinghouse Electric.
Westinghouse Electric was eliminated early in the race to win the Czech nuclear power plant contract, but is continuing to fight the case in the U.S. courts, arguing that it is not possible to have exclusive exports of Korea Hydro and Nuclear Power.
The company claims that the technology was developed based on the U.S. government's NVIDIA ...
In a first hearing last year, the U.S. court ruled that the owner of intellectual property rights was the government.
The court dismissed the lawsuit seeking a provisional injunction banning exports, stating that Westinghouse, a private company, could not be the subject of the lawsuit because the company was not a party to the lawsuit. However, the case remains open as the appeal is ongoing.
Some in the Czech Republic have also pointed to the intellectual property litigation issue as one of the issues that must be addressed before the official contract with Korea Hydro and Nuclear Power is signed early next year.
Korea Hydro and Nuclear Power received support from Westinghouse in the early stages of developing Korean-made nuclear reactors, but
They claim that the current models, such as the ARP1400, were developed completely in-house. However, the fact is that the technology was transferred from Westinghouse. Also, nuclear power is a political issue.
Since this is a project that takes into consideration international interests, competing with the United States itself could be a major cause for concern in the future of nuclear exports.
In the race to win the nuclear power plant contract with the South Korean government, Westinghouse Electric won the business while also making an offensive over intellectual property rights against Korea Hydro and Nuclear Power.
The reason why the Czech Republic chose Korea Hydro and Nuclear Power this time is that the ongoing legal battle between the United States and South Korea is a major obstacle to this project.
It was also reported that Korea Hydro and Nuclear Power is in the final stages of negotiations with Westinghouse Electric Co., Ltd. under a cooperative framework between the U.S. and South Korean governments.
It is too early to say anything. In particular, the US presidential election is scheduled for November this year, and there is a high possibility that former President Trump, who has a strong tendency towards "nationalism," will be re-elected.
An industry source said, "We are competing with Westinghouse not only for this contract with the Czech Republic, but for almost all future new nuclear power projects in the West, so this intellectual property right is a big deal.
The property rights issue is a task that must be resolved," he said. "The South Korean government also needs to make thorough preparations to ensure that the U.S.-South Korea nuclear alliance will continue no matter who becomes the new U.S. president."
Another important issue is that when concluding the contract with the Czech Republic, various uncertainties must be fully considered to ensure the feasibility of the project.
There are some analysts expressing concern that Korea Hydro & Nuclear Power may have won the contract at a low price, bidding at 60% of the price offered by Electricité de France.
Although the government dismissed the concerns, various concerns could arise due to the nature of nuclear power projects, which take around 15 years to complete.
The company's experience in "construction within delivery deadlines" was an advantage in winning the contract for the nuclear power plant project in the Czech Republic, but internationally, projects can be delayed or stalled, as in the case of the UK and Turkey.
In particular, in the course of negotiations with the Czech Republic, the financial support burden on state-run financial institutions such as the Export-Import Bank of Korea may become greater, so the government may be forced to take measures such as interest rate fluctuations.
Experts are advocating that this should be monitored carefully. Korea Hydro & Nuclear Power and other companies also requested financial assistance when exporting nuclear power plants to the United Arab Emirates. Westinghouse
The possibility that intellectual property rights negotiations with the company will be concluded by paying a certain amount of royalties, as was the case in the UAE, could also be a negative factor in ensuring the viability of the Czech nuclear power plant.
Korea Hydro & Nuclear Power, which has the right of first refusal, is confident of moving ahead with a profitable project.
"We submitted a business plan taking into consideration all of the local conditions in the Czech Republic and the characteristics of the long-term project," he said. "It is still difficult to predict the final contract amount, but the expected project cost is expected to be 15 trillion U.S. dollars, which is the initial estimate."
"The fact that the increase to 24 trillion won is higher than the previous 1.69 trillion won (about 1.69 trillion yen) is being viewed positively by the financial industry."