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.
Green light nears for Korea's participation in Czech nuclear project
Energy Minister Ahn Duk-geun, back row left, and U.S. Secretary of Energy Jennifer Granholm, back row right, stand as both countries' officials sign a memorandum of understanding regarding principles concerning nuclear technology exports and cooperation in Washington, D.C., Wednesday (local time). Courtesy of Ministry of Trade, Industry and Energy
By Park Jae-hyuk
Mended ties with Westinghouse boosts prospects for final deal
Korea appears to have taken a step closer to signing a deal worth 400 billion Czech korunas ($16 billion) in March to build nuclear reactors in the Czech Republic, as Westinghouse Electric is expected to end its two years of dispute with Korea Hydro & Nuclear Power (KHNP) over the U.S. firm's intellectual property rights.
According to industry officials on Friday, Westinghouse is likely to stop complaining about the Czech government's selection of KHNP as a preferred bidder to build nuclear reactors in Dukovany.
This follows a memorandum of understanding signed between the governments of Korea and the United States in Washington, D.C., Wednesday (local time), regarding principles concerning nuclear technology exports and cooperation.
"The latest agreement is based on confidence in each other as comprehensive strategic partners, so it is expected to contribute to promoting reciprocal cooperation between the two countries in the global market," the Ministry of Trade, Industry and Energy said in a press release, signaling that the companies of both countries will also restore their relations.
The Czech government welcomed the stronger ties between Korea and the U.S. in the nuclear energy industry.
"We view this step positively, especially with regard to the Czech project for new nuclear sources in Dukovany," Czech Industry Minister Lukas Vlcek wrote on X.
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Westinghouse also announced on Thursday (local time) that CEO Patrick Fragman will step down at the end of March, after more than five years in the role.
The outgoing CEO is the one who led the company's lawsuit against the Korean government-owned nuclear power plant operator. Westinghouse claimed its technology is used in the nuclear plant type that KHNP is planning to export, and the Korean company does not have the right to use the technology without its consent.
The French national previously worked in various energy-focused roles within the government of his country, home to EDF, another bidder for the Czech nuclear project, which filed a complaint last year against the selection of KHNP as the preferred bidder for the project.
In November, the Czech antitrust watchdog denied both complaints from EDF and Westinghouse over the selection process.
"The proceedings on the proposals of both companies were mostly terminated, while other parts of the proposals were rejected," the Czech Office for the Protection of Competition said at that time.
Four nuclear power plant cooling towers rise high above the natural surroundings of Dukovany, Czech Republic, in this 2011 photo. AP-Yonhap
Buoyed by the favorable news reports, the prices of stocks related to the nuclear energy industry soared during Friday's trading session.
The share price of Doosan Enerbility, which belongs to the KHNP-led consortium for the Czech nuclear project, closed at 20,000 won, up 6.21 percent from the previous session.
The nuclear energy industry also remained optimistic about Korea's success in its first nuclear reactor export in 15 years.
"I hope for success in signing the final agreement for the Czech nuclear project this year and for increased nuclear reactor exports," Hwang Joo-ho, CEO of KHNP and chairman of the Korea Atomic Industrial Forum, said during a New Year gathering of nuclear industry insiders on Friday.