Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Czech order opens gates for more Korean nuclear plant exports to Europe
Industry Minister Ahn Duk-geun speaks during a media briefing at Government Complex Sejong, Thursday, a day after the Czech Republic chose Korea Hydro & Nuclear Power (KHNP) as the preferred bidder for a $22 billion nuclear power plant project. Yonhap
By Lee Min-hyung
KHNP in talks with Netherlands, Finland, Sweden for nuclear reactor projects
Korea’s landmark success in securing a major nuclear power project in the Czech Republic will pave the way for Asia’s fourth-largest economy’s to attract more reactor orders from other European countries, according to the Ministry of Trade, Industry and Energy, Thursday.
Fueling such expectations was an overnight decision by the Czech Republic to choose Korea Hydro & Nuclear Power (KHNP) as the preferred bidder for a 24 trillion won ($17.3 billion) project to build two nuclear reactors in Dukovany.
The successful bid comes as a result of the Yoon Suk Yeol government’s reversal of the previous Moon Jae-in administration’s nuclear energy phaseout policy, a shift initiated after the Yoon administration took office in 2022.
“This marks the first time in 15 years that Korea has secured an export contract for nuclear power plants, and it will serve as a significant stepping stone for us to win more contracts in Europe,” Industry Minister Ahn Duk-geun told reporters during a briefing. “We will do our utmost to finalize the contract, ensuring that both countries benefit from this collaboration.”
Under the project, KHNP will team up with a group of Korean firms, such as Doosan Enerbility, Daewoo E&C and other state-run energy companies. The so-called Team Korea will start construction of the reactors in 2029, which will begin operations in 2036.
As the Czech Republic plans to build two more reactors in Temelin later, the combined value of the projects could rise to around 48 trillion won if KHNP wins another order.
KHNP faced intense competition from France’s EDF in a high-stakes bid before securing the contract. Ahn revealed that the presidential office played a key role in leading the final negotiations with the Czech government.
“While President Yoon Suk Yeol talked with Czech President Petr Pavel during their NATO summit, I also brought the president's signed letter to Prague and discussed (with Czech Prime Minister Petr Fiala) measures for both countries to enhance industrial collaboration.”
Seen above are nuclear reactors in Dukovany, the Czech Republic. Courtesy of Korea Hydro & Nuclear Power
Korea also proposed to broaden the partnership between the two countries from solely focusing on nuclear power plants to encompassing a much wider range of industrial sectors, according to Ahn.
“The Czech Republic is an open economy driven by manufacturing sectors, and Korea is making large-scale investments in countries in Central Europe,” the industry minister said.
KHNP CEO Hwang Joo-ho expressed confidence in winning more nuclear power contracts in other European countries.
“We will prepare for a bid (for exports of nuclear reactors) in the Netherlands, and we are also in talks with Finland and Sweden,” Hwang said.
The latest achievement holds symbolic significance, marking the first time Korea has won a nuclear power plant export contract since a consortium led by Korea Electric Power Corp. secured the Barakah Nuclear Energy Plant deal in the United Arab Emirates (UAE) back in 2009.
The industry ministry explained that Team Korea secured the latest order due to a range of competitive advantages, such as lower prices and demonstrated construction efficiency. Korea managed to complete a nuclear reactor project in the UAE in approximately three years, whereas similar projects in other countries usually take six to 10 years.
Business lobbies and trade associations here also praised the latest achievement, saying that Korea will be able to make deeper inroads into Europe’s nuclear power plant markets.
“The competitiveness of Korea’s nuclear power industry has been proven, and our global profile was also elevated after the country won the preferred bidder status for the Czech Republic’s largest-ever nuclear power plant project,” the Korea International Trade Association said in a statement.
The outcome also carries immense significance, as it will pave the way for Korea to make a deeper foray into the European market, according to Korea’s largest trade organization.