Hanhyewon "Expected to Win Lawsuit Against Doosan Even if Shin Hanul Units 3 and 4 Are Canceled"

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Hydro & Nuclear Power (KHNP) has judged that even if it is sued by Doosan Heavy Industries due to the cancellation of the construction of Shin Hanul Nuclear Power Plant Units 3 and 4, it is highly likely to win the lawsuit.

According to Alio, a public institution management information disclosure system, KHNP stated in the "Contingent Liabilities Related to Litigation" disclosed on the 23rd that "there is currently no obligation regarding the payment for preliminary work on major equipment related to Shin Hanul Units 3 and 4."

KHNP did not reflect the related costs as contingent liabilities. Regarding this, KHNP explained, "If a lawsuit occurs in the future, it is judged that the possibility of winning the lawsuit is higher than the possibility of losing," and "it is not possible to reliably estimate the amount required to fulfill the obligation."

The specific counterparty mentioned by KHNP is Doosan Heavy Industries. Doosan Heavy Industries, which was in charge of constructing Shin Hanul Units 3 and 4, has invested 492.7 billion KRW in the preliminary manufacturing of major equipment such as reactor facilities and turbine generators. For this reason, there has been speculation that if the construction of Shin Hanul Units 3 and 4 is canceled, Doosan Heavy Industries will file a large-scale damages lawsuit against KHNP.

KHNP appears to judge that even if the construction of Shin Hanul Units 3 and 4 is canceled, it is due to the government's nuclear phase-out policy and that the company is not at fault. KHNP also regarded the construction of Shin Hanul Units 3 and 4 as difficult and has processed the 134.7 billion KRW invested so far as a loss.

Meanwhile, the government extended the construction plan approval period for Shin Hanul Units 3 and 4, which expired last month, until December 2023. This is interpreted as an intention to postpone the fate of Shin Hanul Units 3 and 4 to the next administration.

This content was produced with the assistance of AI translation services.