SK Group leads South Korean consortium considering Westinghouse investment

A consortium of major South Korean companies, led by SK Group, is considering a multi-trillion won investment to acquire a 5% to 10% stake in the American nuclear energy firm Westinghouse. Other potential participants in this ‘Team Korea’ consortium include Samsung C&T, Hyundai Engineering & Construction, and Doosan Enerbility.

The proposed investment aligns with a broader bilateral cooperation framework between South Korea and the United States. Discussions involve utilizing a portion of a $200 billion investment fund to construct eight large-scale nuclear reactors in the U.S. For South Korean firms, the move offers a strategic entry into the American nuclear market, with Samsung C&T and Hyundai E&C potentially focusing on engineering, procurement, and construction (EPC), while Doosan Enerbility targets core equipment supply.

SK Group aims to expand its nuclear energy portfolio from small modular reactors (SMRs) to large-scale reactors to support the growing power demands of the AI industry. This strategy seeks to complete an ‘AI full stack’ by combining semiconductor capabilities with stable energy solutions. While Westinghouse is reportedly targeting a valuation of over $50 billion for its potential IPO, industry estimates for its valuation vary between $20 billion and $30 billion.