By Kwanwoo Jun
South Korean nuclear-energy stocks retreated Wednesday, a day after an affiliate of the nation's largest electric power company confirmed it's withdrawing from potential bids to build nuclear plants in Poland.
The CEO of Korea Hydro & Nuclear Power, a subsidiary of Korea Electric Power, said at a televised parliamentary hearing in Seoul on Tuesday that the company had stepped back from Poland's nuclear market after the Warsaw government's recent decision to halt related state-run projects.
KHNP's withdrawl is seen as a setback to its push into Europe. In June, a KHNP-led consortium finalized a $19 billion deal in the Czech Republic to build two new reactors for the Dukovany power plant, southeast of Prague.
At the hearing, Chief Executive Whang Joo-ho faced questions over what lawmakers called an "unfair" technology-dispute settlement earlier this year with U.S. nuclear company Westinghouse Electric.
Citing a confidentiality agreement he did not disclose terms, as lawmakers asked whether KHNP had agreed to pay steep fees for using U.S. technology and to exit major nuclear markets in Europe and elsewhere under the settlement.
On Wednesday, shares of KHNP parent Korea Electric Power fell as much as 8.7%, underperforming the Kospi's nearly 2.0% decline around midday. KHNP consortium partners also fell, with power-plant builder Hyundai Engineering & Construction down as much as 12% and reactor maker Doosan Enerbility off as much as 14%.
The declines appeared overdone because the sector's optimistic outlook remains intact--demand for large-scale power plants and small modular reactors is rising, and South Korean nuclear companies continue to expand overseas via partnerships with global players, KB Securities analysts Moonjoon Chang and Hyejung Jung said.
Weak sentiment could weigh in the short term, but the correction may offer buying opportunities, they said.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
August 20, 2025 00:45 ET (04:45 GMT)
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