(EDITORIAL from the JoongAng Daily on Dec. 31) - Beating the odds

It is hard to let go of the euphoria and sensation of seeing Korea win its first
deal to export nuclear reactors in one of the world???s largest and most hotly
contested contracts. The entire population is united in rejoicing over the news
from Abu Dhabi that the United Arab Emirates chose a consortium led by the
state-run Korea Electric Power Corp. to build multibillion-dollar nuclear
reactors in the Middle East.
A half-decade of hard labor in reactor labs and the support of President Lee
Myung-bak helped the nation reap the benefits of decades of investment in
alternative energy sources. Nuclear energy is expected to be a major source of
growth for our export-driven economy. The government and Kepco plan to apply
their teamwork to compete for third-generation contracts in Turkey and Jordan as
well.
Korea???s surprise win was based largely on its bidding and operational skills.
Yet Korea has a lot to learn and overcome before it joins the ranks of top-class
reactor manufacturers. The construction of a nuclear power plant requires three
essential technologies - a reactor coolant pump, a code system and man-machine
interface systems. Together, these make up 5 percent of the total amount of
technology needed, with the remainder of the technology needed to build the basic
infrastructure.
The Kepco consortium includes Westinghouse, which contributed the bulk of the
design and construction technology, and its parent company Toshiba. In the
process of fulfilling the contract, Korea may end up enriching its foreign
consortium members.
Kepco and other local corporate consortium members like Doosan Heavy Industries
and Construction plan to start manufacturing the plant???s key components
locally. But it will take time for their technology to pass an international
standardization review. Meanwhile, the Korean companies must also ensure that
spent fuel is reprocessed safely so that nuclear waste is not recycled for
non-peaceful purposes. This means that to be completely free to export nuclear
energy technology, the government should also revise its nuclear agreement with
the United States so that it is similar to Japan???s.
We expect our corporations to make greater strides into the nuclear energy
industry, which is estimated to be worth more than $1 trillion.
In winning this deal, Korea has beat the odds. But we need to ensure that this is
more than a one-time windfall.
(END)