(News Analysis) S. Korea wins chance to become nuclear powerhouse with UAE deal

By Byun Duk-kun
ABU DHABI, Dec. 27 (Yonhap) -- South Korea took its first step toward becoming a
major exporter of nuclear technology and reactors when it landed a deal
potentially worth US$40 billion with the United Arab Emirates on Sunday.
The deal, signed shortly after a summit here between South Korean President Lee
Myung-bak and UAE President Khalifa bin Zayed Al Nahyan, is initially worth $20
billion for the construction of four light water reactors, but is expected to
generate contracts worth an additional $20 billion for the next 60 years for the
plants' operation and maintenance.
The deal marked a historic first step for South Korea, as it is the first sale of
the country's nuclear plants overseas, according to South Korean officials
accompanying the president. With the deal, South Korea has become world's sixth
exporter of nuclear power plants.
President Lee's trip here had marked the country's winning of the largest nuclear
deal ever in the Middle East, but the Seoul government remained cautious until
the very last minute.
Officials from the presidential office, Cheong Wa Dae, later noted Lee helped win
a losing battle.
"The president held six telephone conversations with the UAE's Crown Prince
Mohammed bin Zayed Al Nahyan before coming here, which apparently helped the
country make a turnaround and win the contract despite imminent signs of a
defeat," Cheong Wa Dae spokeswoman Kim Eun-hye told reporters.
The deal also marked a significant triumph for South Korean contractors, who
landed the largest construction deal in South Korean history after fierce
competition with the French nuclear group Areva, which currently controls 25
percent of the international market, they said.
Nearly half of the world's demand for nuclear power plants is met by the U.S.
firm General Electric Co. (GE) and Westinghouse Electric Co., but GE was
eliminated in the early stages of bidding. Westinghouse, meanwhile, joined the
South Korean consortium led by the state-run Korea Electric Power Corp.
"It will be a milestone on the road to an era of South Korean nuclear power
plants in the international community," Lee Dong-kwan, top public relations
secretary for the South Korean president, said earlier of the significance of
South Korea winning the UAE project.
Cheong Wa Dae spokeswoman Kim said the deal means the country has gone from being
an importer of nuclear technology to an exporter.
Seoul built its first nuclear power plants in 1978 and has since built a total of
20 domestically, while localizing over 95 percent of the technology. An
additional eight plants are now under construction in South Korea.
"The UAE deal means the country and its nuclear technology are finally recognized
for what they are worth. It also means future contracts with other countries will
come more easily," an official said, asking not to be identified.
The World Nuclear Association estimates that by 2030, the world will need 430 new
nuclear power plants worth over $1 trillion.
The $20 billion deal with the UAE is equivalent to exporting 1 million passenger
vehicles, while it is expected to create 110,000 jobs during the construction of
the four reactors to be completed by 2020, according to the South Korean
presidential office.
"South Korea's securing of the UAE project is expected to be a chance for the
country to become a leading power of nuclear plant exporters ahead of
conventional powerhouses of nuclear power plants in this era of a global
renaissance of nuclear energy," it said in a press release.
Meanwhile, bilateral relations between South Korea and the UAE are expected to be
further strengthened as decade-long construction of the nuclear power plants and
following technology support will promote exchanges of manpower and goods in a
significant scale between the two countries.
The UAE is currently second-biggest petroleum exporter to South Korea, following
Saudi Arabia, and second-biggest importer of South Korean goods, following Iran,
in the Middle East.
bdk@yna.co.kr
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