Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
INTERVIEW Prague intends to task KHNP with another nuclear project
Czech Industry and Trade Minister Lukas Vlcek attends the Czech-Korea Investment and Business Conference at the Korea Chamber of Commerce and Industry in Seoul, Monday. Korea Times photo by Shim Hyun-chul
By Park Jae-hyuk
Czech Republic encourages Korea to invest in broader range of sectors
The Czech government indicated its intention to place an additional order with Korea Hydro & Nuclear Power (KHNP) to build two more nuclear reactors in the southern village of Temelin. This will follow once the Korean government-owned nuclear power plant operator proceeds with the construction of two reactors in the municipality of Dukovany.
Czech Industry and Trade Minister Lukas Vlcek told The Korea Times during his visit to Seoul this week that building the Temelin reactors with KHNP is the most efficient option. He cited the familiarity with the design that suppliers, regulators and investors will gain during the Dukovany project, as well as the potential synergy between the two projects.
KHNP is awaiting the main contract next month for the project worth 400 billion Czech koruna ($16 billion), aimed at building two nuclear reactors in Dukovany. The Korean firm was selected last July as the preferred bidder for the deal, with a binding option for the construction of two units at the Temelin site in the future.
If the Czech Republic decides to cooperate with Korea on both the Dukovany and Temelin projects, the value of KHNP's deals with the European country will double to 800 billion Czech koruna.
"This is our intention," Vlcek said in the exclusive written interview with The Korea Times and its sister paper, The Hankook Ilbo. "The decision to construct two additional units will be up to the new government in the Czech Republic, but we are making sure that the next government will have everything it needs to make such a decision."
The European country's next parliamentary election is scheduled for October, but both the ruling and opposition parties reportedly support the construction of new nuclear plants.
Vlcek emphasized the need for new reactors to ensure generation adequacy and energy security in his country, as well as to provide potential benefits for Czech industrial, engineering and construction companies.
"The attitude toward nuclear power is shifting in Europe, and many countries are realizing that achieving net-zero without nuclear would be costlier than assumed in the past," he said. "I think there will be plenty of opportunities to cooperate on upgrades, maintenance and lifetime extension [of Dukovany reactors] or for Temelin, or even on third markets in the future."
Recognizing the competitiveness of Korea's nuclear industry, which has never experienced disruptions in constructing power plants, the minister expects KHNP to overcome potential challenges in the Dukovany project, such as securing qualified personnel and overcoming language barriers, time differences and cultural differences.
"Thanks to the presence of the Korean community in the Czech Republic, as well as the successful references of Korean industrial projects in the Czech Republic, such as Nexen and Hyundai's factories, I believe that these challenges will not hinder the project," he said.
Acting President Choi Sang-mok, right, talks with Czech Industry and Trade Minister Lukas Vlcek at Government Complex Seoul, Tuesday. Yonhap
In addition to cooperation in the nuclear energy sector, Vlcek encouraged Korean companies to invest in a broader range of sectors in the Czech Republic, including semiconductors and electro-mobility. He highlighted his country's strategic location, skilled and educated workforce, stable energy infrastructure and the benefits of its European Union membership.
Although the recent slowdown in demand for electric vehicles (EVs) led Hyundai Motor to cut production at its Czech factory, the minister assured that his government is committed to supporting new technologies in clean and autonomous driving.
"In December, the Czech government also approved a new program named 'Strategic Investments for a Climate-neutral Economy' that is focusing on key investments related to green technologies, including battery value chain, EVs and mass energy storage," he said. "High-tech investors like Hyundai Motor and its suppliers, as well as all the other Korean high-tech investors, can benefit from these support measures in all their expansion plans."
Vlcek also denied any setbacks in the potential cooperation between the two countries on post-war reconstruction projects in Ukraine, as agreed upon by the leaders of Korea and the Czech Republic in September during President Yoon Suk Yeol's visit to Prague, before the Korean leader was arrested earlier this year for his martial law declaration.
"We are currently in a state of establishing cooperation and looking for concrete projects," the minister said. "Our policy remains unchanged. We are ready to continue to support Ukraine and its reconstruction."
Read More
This year, Korea and the Czech Republic marked the 35th anniversary of diplomatic relations and the 10th anniversary of their strategic partnership. Korea is the first Asian country with which the European country has elevated its partnership to a strategic level.
Their bilateral trade volume has also exceeded $5 billion annually over the past four years.
According to the minister, the Czech government has actively promoted the internationalization of Czech exporters and investors, seeing great potential for their future expansion in Korea.