South Korea and the United States are grappling with major disagreements over a proposed $200 billion investment by Seoul in U.S. nuclear projects, casting uncertainty over the finalization of the agreement. Ongoing negotiations are hindered by disputes over nuclear reactor designs, funding schedules, and investment risk management.
A primary sticking point in the discussions is the selection of nuclear reactor technology. The two nations are considering building eight reactors in the U.S., with six potentially utilizing Westinghouse’s AP1000 design and two employing South Korea’s APR1400 technology. Despite this, U.S. officials and Westinghouse have reportedly opposed the inclusion of the Korean-designed APR1400, complicating the agreement on the nuclear component of the investment.
Further complicating matters is South Korea’s interest in acquiring a significant stake in Westinghouse. Seoul is seeking a 15% to 20% ownership share with voting rights and a board seat, while Westinghouse is resisting, preferring to cap South Korea’s ownership at below 10%.
In addition to these technical and managerial disputes, there are financial challenges related to the timing and amount of South Korea’s contributions. The U.S. has requested over $9 billion from South Korea by the end of the year, whereas Seoul had initially planned to start with smaller investments in 2026, ramping up in 2027.
Another point of contention is how investment returns and losses should be calculated. South Korea proposes that profits from successful projects offset losses, while the U.S. favors separate accounting for each project. Under discussion is a framework where the U.S. would secure 90% of net profits after recovering principal and interest, raising concerns in Seoul about bearing losses from failed projects.
Despite these unresolved issues, both countries continue their negotiations, with South Korea’s Industry Ministry confirming that no definitive decisions have been made regarding the projects, funding, or the structure of the investment arrangements.