SK, Samsung among Korean firms considering Westinghouse stake acquisition

Major Korean companies including Samsung, SK and Doosan are considering participating in the acquisition of a stake in U.S. nuclear power company Westinghouse, according to industry sources.

If private companies join nuclear cooperation between Korea and the United States, which has so far been led largely by state-run companies such as Korea Electric Power Corp. (KEPCO) and Korea Hydro & Nuclear Power (KHNP), the move is expected to give Korean companies greater momentum in entering the U.S. nuclear power market.

Government and industry sources said Wednesday that the government has been surveying nuclear power-related companies about their interest in investing in Westinghouse since announcing its investment plans in the United States.

Companies interested in participating recently gathered at a meeting hosted by KEPCO to discuss potential investment options, according to the sources. Samsung C&T, SK Group, Hyundai Engineering & Construction and Doosan Enerbility were among the companies that attended the meeting.

Securing a stake in Westinghouse is one of the key issues in investment discussions between Korea and the United States. On Oct. 1, the two countries agreed on a Korea-U.S. nuclear power framework under which $120 billion will be invested to build eight large-scale nuclear reactors in the United States — two APR1400 reactors and six AP1000 reactors. The agreement also includes a plan for the Korean side to acquire a 5 percent to 10 percent stake in Westinghouse.

"I think KEPCO and KHNP would make investments with symbolic significance, probably at a minimal level," Industry Minister Kim Jung-kwan said at the time. "Companies are viewing the investment positively from a strategic perspective, and they are taking an active approach because there is potential to expand beyond large-scale nuclear power plants into the small modular reactor market."

Samsung C&T and Hyundai E&C could benefit by securing engineering, procurement and construction contracts for U.S. nuclear power projects, while Doosan Enerbility could expand supplies of key equipment such as nuclear reactors and steam generators. SK Group has also been stepping up its nuclear power business, with SK Innovation investing $250 million in TerraPower, the advanced nuclear power company founded by Bill Gates.

Companies, however, remain cautious because only the potential range of the Westinghouse stake has been outlined, while the total acquisition amount and each company's share of the investment have yet to be determined.

"The government is still at the stage of asking each company whether it is interested in investing," an official at one company said. "Nothing has been decided about how much of a stake in Westinghouse will be acquired, so it is only a proposal at this point."

Another company official said, "There probably aren't many companies that would be unwilling to participate, but the amount of investment is likely to be the key issue."

"The acquisition of a stake in Westinghouse is a matter for our companies to decide based on their own business judgment," an Industry Ministry official said. "It would not be appropriate for the government to say anything about it."

This article from the Hankook Ilbo, the sister publication of The Korea Times, was translated by a generative AI system and edited by The Korea Times.