Whang Joo-ho, president of Korea Hydro & Nuclear Power (KHNP) has submitted his resignation in the face of mounting pressure from the ruling Democratic Party to resign over allegations of agreeing to an unfair contract with Westinghouse.
President Whang told Chosun newspaper on 17 September in a phone call, “I have submitted my resignation and am awaiting notification of its processing.” As KHNP is a public institution, the processing of Whang’s resignation requires a recommendation from Minister Kim Jung-kwan of the Ministry of Trade, Industry & Energy and approval from President Lee Jae-myung.
President Whang assumed office on 22 August 2022, and completed his official term on the 21 August. However, he had remained in his position due to the absence of a successor. According to the Public Institutions Operation Act, an institutional head must continue their duties until a successor is appointed even after their term expires.
Democratic Party members of the Industry, Trade, SMEs, and Venture Business Committee had publicly demanded Whang’s resignation last month regarding the contract between KHNP, Korea Electric Power Corporation (KEPCO), and Westinghouse. “This is a humiliating agreement that surrenders the nation’s interests and sovereignty,” they said. “It is a treacherous pact that relinquishes nuclear technology sovereignty and shackles future generations.”
The controversy centres on allegations that the Yoon Suk-yeol administration signed an unequal agreement with Westinghouse in January to secure the Dukovany NPP construction project in the Czech Republic. The disputed clauses include provisions that KHNP and KEPCO will pay Westinghouse $175m in technology usage fees and purchase $650m worth of equipment for each nuclear power plant exported over the next 50 years. Additional clauses include agreements that KHNP will not pursue new NPP projects in North America, the EU, the UK, Ukraine, and Japan, and that exports of small modular reactors (SMRs) would require approval from the US.
KHNP and Westinghouse signed the agreement after Westinghouse accused the KHNP of infringing on its intellectual property, alleging that KHNP’s APR 1000 and APR1400 plant designs utilise its licensed technology. The deal had removed a major hurdle for a KHNP-led Korean consortium to finalise the contract in June for an estimated $19bn deal to build two nuclear units in the Czech Republic.
The Democratic Party further argued, “President Whang’s term has already expired, and if he leads negotiations that will shape the future of the national nuclear industry for decades to come, this would constitute an abuse of authority by someone without legitimate power.”
Earlier in September, President Whang attended a plenary session of the Industry, Trade, SMEs, and Venture Business Committee at the National Assembly and responded “Yes” to a question from Democratic Party Representative Kim Won-eui, who asked, “Do you have the intention to resign at an appropriate time?”
Given that the appointment process for public institution presidents typically takes several months, a leadership vacuum at KHNP is seen as unavoidable. There are also concerns that discussions to establish a joint venture between KHNP and Westinghouse could now face delays.
