Weapons of Mass Destruction (WMD)

                                                PRESS RELEASE
                                                  MEDIA ALERT
Contact person at KEDO:                                                      Wednesday, December 15, 1999
Joon Ra             (212) 455-0256 

         KEDO SIGNS TURN-KEY CONTRACT FOR
LIGHT-WATER REACTOR  PROJECT IN NORTH KOREA 

 The Korean Peninsula Energy Development Organization (KEDO) signed a Turn-
key Contract (TKC) with the Korea Electric Power Corporation (KEPCO) on December
15 at KEPCO headquarters in Seoul. 

 The TKC stipulates the terms and conditions of the design, construction, and
commissioning of the light-water reactor (LWR) plants being constructed in Kumho, the
Democratic People’s Republic of Korea (DPRK).  The TKC will enable KEDO to
proceed to full-scale construction work.  Preparatory construction work started in August
1997 with activities such as grading and infrastructure development under a Preliminary
Works Contract (PWC) with KEPCO.

 The commencement of full-scale construction work will signal a major step
forward in the LWR project.  Under the LWR project, KEDO will provide the DPRK
with two 1,000 megawatt light-water reactors.  KEDO will also continue to supply the
DPRK with heavy fuel oil until the first plant is completed.

The signing ceremony in Seoul was followed by a press conference by KEDO
Executive Director Desaix Anderson and KEPCO President Choi Soo-Byung.