Seoul: The government has advised Korea Electric Power Corp. (KEPCO) and Korea Hydro and Nuclear Power Co. (KHNP) to resolve their ongoing legal dispute concerning payments for a power plant project in the United Arab Emirates (UAE) on home soil.
According to Yonhap News Agency, the Ministry of Trade, Industry and Resources suggested that the two state-run entities move their case from the London Court of International Arbitration (LCIA) to the Korean Commercial Arbitration Board. The ministry highlighted the advantages of this move, including reduced costs and a shorter litigation period, as well as minimizing the risk of leakage of South Korea's nuclear power technology to foreign entities. Additionally, the ministry recommended that KEPCO and KHNP establish a consultative body to negotiate a resolution.
The dispute between KEPCO and KHNP has persisted for several months over additional construction costs associated with their joint Barakah nuclear power plant project. This project, which involved the construction of four nuclear reactors in the UAE, represents Korea's first overseas nuclear power venture, valued at 20 trillion won (US$13.95 billion).
In the previous year, KHNP filed an arbitration claim against its parent company, KEPCO, with the LCIA. KHNP demanded reimbursement for extra expenses incurred due to project delays and additional work orders, which they attribute to the UAE and KEPCO.
Currently, KEPCO is in negotiations with the Emirates Nuclear Energy Company, which commissioned the project, to settle these additional costs, as confirmed by ministry officials. Last month, Industry Minister Kim Jung-kwan criticized the companies during a policy briefing session for their ongoing dispute and encouraged them to collaborate in enhancing Korea's presence in the global nuclear power plant market.