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.
Risks remain to Czech nuclear deal signed on Lee's inauguration day
The Dukovany nuclear power plant in the Czech Republic / Courtesy of Korea Hydro & Nuclear Power
By Park Jae-hyuk
Questions are mounting over whether the new government supports the Czech nuclear reactor deal signed Wednesday, the same day President Lee Jae-myung took office.
During opening remarks at the administration's first Cabinet meeting on Thursday morning, Lee made no mention of the multibillion-dollar agreement, which was finalized immediately after the Czech Supreme Administrative Court lifted an injunction imposed by a regional court. At the request of French energy company EDF — a losing bidder in the tender process — a regional court in the Czech city of Brno issued the injunction last month, preventing the Korean delegation in Prague from signing the final contract at the last minute.
Throughout his election campaign, Lee pledged to prioritize renewable energy development over expanding nuclear power.
Although he was cautious about promoting a swift nuclear phase-out, he did not hesitate to highlight the risks of nuclear power during televised debates, citing historic disasters at Japan's Fukushima and the Soviet Union's Chernobyl plants.
Anti-nuclear civic groups have urged Lee to clarify his position on nuclear power, so that he is not perceived to be continuing the energy policy of impeached former President Yoon Suk Yeol, who championed nuclear exports.
Amid the president's silence on the Czech nuclear project, Rep. Kim Jung-ho of the ruling Democratic Party of Korea reportedly voiced concern that Korea Hydro & Nuclear Power (KHNP) could lose to EDF in the pending lawsuit. He is one of the lawmakers in the party who is skeptical of the profitability of Yoon's much-hyped reactor export initiative.
Liberal lawmakers have questioned the viability of the Czech deal, citing Prague's condition that KHNP ensure at least 60 percent of the project involves local industry. KHNP is also reportedly committed to guaranteeing the United States' Westinghouse a significant share of profits whenever it exports nuclear reactors.
"The outcome of the lawsuit could be unfavorable to KHNP," Kim told a local news outlet.
Unless EDF drops the case, legal uncertainty could linger for several years.
The French firm has also asked the European Commission to investigate the deal, alleging KHNP violated the European Union's Foreign Subsidies Regulation, which bars non-EU firms from winning public contracts in the bloc through unfair support from their home governments. EDF claims KHNP offered an artificially low bid due to such backing.
KHNP, which is poised to export its first nuclear plant since the 2009 Barakah project in the United Arab Emirates, remains confident of winning the legal battle.
The company claims that the contract will remain valid even if EDF wins the lawsuit, arguing the Czech government would be obligated to compensate the French firm rather than cancel the agreement. Based on that view, KHNP is preparing to open an office near the Dukovany site.
"This contract is a remarkable achievement that once again proves the technological excellence and reliability of Korea's nuclear power industry on the global stage," KHNP CEO Whang Joo-ho said.
"KHNP will do its utmost to enhance the global competitiveness of our domestic nuclear ecosystem, fulfill our responsibility to future generations through safe and sustainable energy, and ensure the successful implementation of the project in close cooperation with the Czech Republic."