As the U.S. and South Korea discuss nuclear power investment cooperation with the United States worth $120 billion (approximately 160 trillion won), major domestic private companies, including SK Group, have begun considering participating in the acquisition of shares in Westinghouse, a holder of core U.S. nuclear technology. This strategic move is interpreted as an effort to broaden their scope across the entire nuclear value chain, targeting the surging power demand from data centers driven by the spread of artificial intelligence (AI).
According to government and industry sources on the 14th, a method in which domestic private companies participate in the government-led U.S. nuclear cooperation as strategic investors (SI) is being discussed. Major conglomerates equipped with nuclear power plant design, procurement, and construction (EPC) and major equipment manufacturing capabilities, including SK Group, Doosan Enerbility, Samsung C&T, Hyundai Engineering & Construction, and GS E&C, are exploring joining a public-private consortium.
In particular, SK Group, which has aggressively continued investments in the nuclear field, is considered a leading candidate for an anchor investor. Under a group-level vision that energy infrastructure must be proactively built to support semiconductor industry growth in the AI era, SK has gradually expanded its nuclear business. In 2022, SK and SK Innovation invested a total of $250 million in TeraWatt, a U.S. small modular reactor (SMR) company where Bill Gates is Lee Sa-hoe (Chairman), becoming major shareholders. Last August, the companies signed a letter of agreement on key terms for jointly tackling the global SMR market.
If this Westinghouse share acquisition also materializes, it will complete a comprehensive nuclear portfolio ranging from next-generation SMRs to large-scale nuclear power plants. Coupled with expectations for major EPC conglomerates to secure orders for large-scale nuclear construction and supply of core equipment, there is an atmosphere of anticipation for synergy creation by 'Team Korea.'
Some speculate that Team Korea may acquire shares at a 10% discount from the offering price under the U.S.-South Korea nuclear framework. Considering Westinghouse's corporate valuation (up to $30 billion) assessed by investment banks, it is estimated that if Team Korea secures up to a 10% stake, an acquisition amount of $2.7 billion (approximately 3.7 trillion to 4 trillion won) would be required arithmetically.
In response, the government stated that it is still negotiating with the U.S. side on securing a 5-10% stake and that nothing has been finalized. It also did not officially confirm discount conditions or details of the agreement, and the scale of the share acquisition remains undetermined.
The industry also views U.S. nuclear investment positively while being wary of premature optimism. With intergovernmental consultations ongoing, it is considered too early to definitively determine whether private companies will fulfill their investments. An industry official stated, "It is true that we are considering the investment, but specific participation methods have not yet been finalized."
A nuclear industry official stated, "Given that this is a national issue involving large-scale capital investment, rather than hastily presenting definitive figures and celebrating prematurely, it is time for meticulous pace management to precede, through close coordination with relevant ministries, in order to maximize national interests via cool-headed calculations of practical benefits."
in ECONOMY
