KEPCO chief expects tough race to secure nuclear reactor export orders

SEOUL, Feb. 9 (Yonhap) -- The head of South Korea's power utility company said
Tuesday that South Korea will have to overcome determined competition and tough
conditions if it wants to win reactor export orders.
Kim Ssang-su, president and CEO of Korea Electric Power Corp. (KEPCO), told
reporters that working-level talks have progressed with Turkey and Jordan for
some time, but hinted that overall conditions were not very favorable.
He said in the case of India and China, there is a need to engage in
government-to-government talks to make any meaningful breakthrough.
"Countries like Turkey and India have preconditions like extent of technology
transfer, mandatory use of local parts and components, and financing issues that
need to be resolved," he said. The CEO said China wanted the creation of a joint
company and considerable technology transfers that may affect talks.
The executive of the public company with assets valued at more than 80 trillion
won (US$68.4 billion) said many countries that want nuclear reactors require some
sort of outside financing arrangement, with some countries offering to barter
mineral resources in exchange for South Korea building the reactors.
"With Turkey, we expect negotiations to take way over one year, while Jordan has
still not decided to tender an open bid for its reactor program or to designate a
partner, despite talks having taken place for about a year," Kim said.
He, however, said that securing the US$20 billion deal in December to build four
nuclear reactors for the United Arab Emirates may exert a positive influence on
making inroads into the Middle Eastern market.
The KEPCO chief, meanwhile, said the utility company should merge with affiliates
such as Korea Midland Power Co., Korea Namdong Electrics and Korea East-West
Power Co. to create an economy of scale that will allow South Korea to engage in
more diverse operations and be in a good position to expand overseas. The company
wants to push up sales to $76 billion by 2020 so it can become a truly global
company like the U.S. firm General Electric Co., Kim said.
At present KEPCO ranks ninth in the world in terms of size among energy
companies, shadowed by its French counterpart EDF.
yonngong@yna.co.kr
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