As South Korea and the United States discuss nuclear power investment cooperation worth $120 billion (approximately 160 trillion won), major domestic private companies, including SK Group, have begun considering participation in acquiring a stake in Westinghouse, the holder of U.S. nuclear power source technology.
This strategic move is interpreted as an effort to broaden its scope across the entire nuclear value chain, targeting the surging electricity demand from data centers driven by the spread of AI (artificial intelligence).
According to the government and relevant industry sources on the 14th, a method in which domestic private companies participate in the government-led U.S. nuclear cooperation as SI (strategic investors) is being discussed.
Major corporations equipped with nuclear EPC (engineering, procurement, construction) and main 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 cited as a leading anchor investment candidate. Under a group-level vision that energy infrastructure must be proactively built to support semiconductor industry growth in the AI era, SK has been gradually expanding its nuclear business.
In 2022, SK and SK Innovation invested a total of $250 million in TeraWatt, a U.S. SMR (small modular reactor) company where Bill Gates is Lee Sa-hoe (Chairman), becoming major shareholders. In August last year, they signed a letter of intent on key terms for jointly tackling the global SMR market.
If the acquisition of a stake in Westinghouse also materializes, it will complete a comprehensive nuclear portfolio ranging from next-generation SMRs to large-scale nuclear power plants. Coupled with expectations for large-scale nuclear construction orders and core equipment supply from domestic EPC major corporations, there is an atmosphere anticipating synergy creation by 'Team Korea'.
Some predict that Team Korea may acquire shares at a 10% discount compared to the public offering price under the U.S.-South Korea nuclear framework. Considering Westinghouse's corporate valuation (up to $30 billion) assessed by the IB (investment banking) industry, estimates suggest 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 decided. It also did not officially confirm discount conditions or details of the agreement.
The industry is also looking positively at U.S. nuclear investment while being wary of premature optimism. With intergovernmental consultations ongoing, it is too early to definitively determine whether private companies will fulfill their investments. An industry official stated, "It is true that we are considering 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 adjustment to precede, through close coordination with relevant ministries, in order to maximize cold-headed calculation of practical benefits and national interests."
in ECONOMY
