South Korea's two state-run energy firms are expected to spend more than 30 billion won in legal fees as they pursue a lawsuit against each other over a payment dispute tied to a nuclear power plant project in the United Arab Emirates (UAE).
According to data submitted to Rep. Kim Dong-ah of the ruling Democratic Party, Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP) will incur a combined 36-point-eight billion won in legal expenses for the ongoing case at the London Court of International Arbitration.
KEPCO is projected to spend 14 billion won, while KHNP will spend 22-point-eight billion won.
South Korea secured the contract to build the UAE nuclear plant in 2009, valued at 22-point-six trillion won.
Following the project's completion last year, KEPCO, the main contractor, and KHNP, responsible for operational support services, entered a final settlement phase.
In May, KHNP filed for arbitration in London, seeking roughly one billion dollars in additional costs, citing delays and extra work orders stemming from both the UAE and KEPCO.
KEPCO, meanwhile, maintains that its priority, under the "Team Korea" framework, is to recover any additional costs directly from the UAE, resulting in a stalemate between the parent company and its subsidiary.