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.
Czech nuclear deal faces uncertainty after Yoon's impeachment
Then-President Yoon Suk Yeol, left, and Czech Prime Minister Petr Fiala sign a turbine blade made by Doosan Skoda Power at the Plzen Industrial Complex in the Czech Republic, Sept. 20. Courtesy of Doosan Enerbility
By Park Jae-hyuk
Signing of main contract delayed amid controversy surrounding project
The impeachment of President Yoon Suk Yeol has created uncertainties about Korea's ongoing negotiations with the Czech Republic regarding Korea Hydro & Nuclear Power's (KHNP) construction of two nuclear reactors in the European country's village of Dukovany.
After the Constitutional Court upheld Yoon's impeachment on Friday, calls have been growing from the liberal Democratic Party of Korea (DPK) to reconsider the ousted president's overall energy policies, highlighted by Yoon's much-hyped nuclear reactor export plans. The calls have also followed the indefinite delay of the main contract for the $17 billion project, which was initially expected to be signed by the end of last month.
The DPK is reportedly planning to convene a meeting to review the Czech nuclear deal's profitability. Even before Yoon was suspended from duty last December over his martial law declaration, the party claimed that KHNP may have offered an excessively low bid to defeat France's EDF and become the preferred bidder for the project.
Doubts over the deal's profitability have grown further as the Czech opposition bloc urged Prague to ensure that KHNP guarantees 60 percent involvement of the Czech industry in the project. The Czech government is currently requiring at least a 30 percent share for local companies, with the goal of increasing the proportion to 60 percent by the end of construction.
"The deeper you look into the Czech nuclear export deal, the clearer it becomes that it's more of a bust than a breakthrough," Rep. Chung Chin-ook of the DPK said during a National Assembly audit in October.
Four cooling towers of the Dukovany Nuclear Power Station rise high above the natural surroundings of Dukovany, Czech Republic, in this 2011 photo. AP-Yonhap
Additionally, the opposition is likely to urge KHNP to verify a rumor that it signed an unfair contract with Westinghouse, a U.S. nuclear power firm, to participate in the Czech nuclear project.
KHNP is alleged to have agreed to guarantee Westinghouse a significant share of the profits whenever the Korean government-owned nuclear operator exports reactors. The allegation surfaced after Westinghouse agreed in January to end its two-year dispute with the Korean firm over the U.S. company's intellectual property rights.
Before Yoon's impeachment, KHNP declined to confirm the rumor, citing a nondisclosure agreement.
"We cannot confirm specifics about the agreement," KHNP said on March 31. "Unconfirmed reports are feared to have negative impacts on the ongoing negotiations regarding the Czech nuclear deal."
Civic groups and environmental activists have also joined the DPK in demanding the repeal of Yoon's nuclear-friendly policies.
"Former President Yoon cited the reduction in budget for Czech nuclear reactor exports as one of the reasons for his martial law declaration," the Korea Federation for Environmental Movements said in a statement. "Such a nuclear-centric policy runs counter to the global call to reduce reliance on fossil fuels and nuclear power in response to the climate crisis and transition toward renewable energy."
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However, the Czech government has downplayed concerns about the future of the nuclear project.
Czech news outlet Seznam Zpravy reported on March 31 that the state-run nuclear power operator CEZ expects the contract to be finalized in the first half of the year.
"The contract with KHNP is basically ready in terms of text," CEZ spokesman Ladislav Kriz was quoted as saying by the Czech news outlet.
Czech Industry and Trade Minister Lukas Vlcek also told The Korea Times in February that the slight delay in signing the main contract is "not a critical issue."