Seoul: South Korea has signed a "legitimate" deal to build nuclear power units in the Czech Republic, the industry minister reaffirmed Monday, amid criticism over the intellectual property settlement deal made between the state-run Korea Hydro and Nuclear Power Co. (KHNP) and U.S. energy firm Westinghouse.

According to Yonhap News Agency, Industry Minister Kim Jung-kwan told lawmakers at the annual parliamentary audit of government organizations, "We know there is criticism over the Czech deal, but we have said before it is a legitimate contract." He emphasized that the agreement has secured a foothold for South Korea in the European nuclear power market and expressed intentions to negotiate for the construction of two additional nuclear reactors once the new Czech government is established.

In January, the KHNP and Westinghouse entered into a settlement after the latter accused the Korean firm of infringing on its intellectual property, alleging that the KHNP's APR 1000 and APR1400 plant designs utilized its licensed technology. This settlement removed a significant barrier for a KHNP-led Korean consortium to finalize a contract in June, estimated at 26 trillion won (US$18.2 billion), to build two nuclear power units in the Czech Republic.

However, scrutiny arose over the settlement deal with Westinghouse, following media reports suggesting it may restrict KHNP from bidding for nuclear power plant projects in North America and the European Union, excluding the Czech Republic. The 50-year agreement reportedly includes provisions requiring KHNP to sign a goods and services purchase contract worth about $650 million with Westinghouse for each nuclear reactor export, and to pay $175 million per reactor in technology licensing fees.

Minister Kim acknowledged the controversies surrounding Westinghouse but asserted the historical perseverance of South Korean exports despite such challenges. He urged for a broader, long-term perspective, highlighting the deal's significance in maintaining trust between South Korea and the United States and supporting the nuclear cooperation agreement between the two nations.