Industry minister says delay in Czech nuclear deal will provide chance to strengthen bilateral ties

Industry Minister Ahn Duk-geun, left, speaks to reporters in Prague, Czech Republic, Wednesday. Courtesy of the Ministry of Trade, Industry and Energy

The unexpected delay in the signing of a deal to build nuclear reactors in the Czech Republic will ultimately serve as an opportunity to further strengthen bilateral relations with the European country, Korea's Industry Minister Ahn Duk-geun has said.

Ahn made the remarks Wednesday when a Korean consortium led by Korea Hydro & Nuclear Power Co. (KHNP) was originally scheduled to finalize the contract with Elektrarna Dukovany II (EDU II), a subsidiary of Czech's state-run utility firm CEZ.

The signing of the estimated 26 trillion-won ($18.6 billion) deal has been postponed due to a court injunction following a legal challenge by the French energy company EDF, which had lost the tender process.

"Although the contract signing was delayed due to unexpected circumstances, I believe this will serve as an opportunity to further solidify the trust between our two countries," Ahn said while meeting with reporters in Prague. The Korean minister and other government delegates arrived here Tuesday for the signing ceremony.

He stressed that Korea and the Czech Republic are expanding their economic ties despite the delay in the nuclear plant deal, with 14 agreements and memorandums of understanding (MOUs) signed earlier Wednesday, including key accords in the nuclear energy sector.

The minister also reiterated that the tender process had been conducted in accordance with legal standards.

"In terms of transparency in the bidding process and the quality of technology, Korea was overwhelming," Ahn said.

The KHNP-led consortium was named last week the final winner of the deal for the construction of two 1,063-megawatt (MW) nuclear reactors at the Dukovany nuclear power plant, located about 200 kilometers east of Prague. It was selected as the preferred bidder in July 2024.

If finalized, the project would mark Korea's first overseas nuclear plant contract since 2009, when another KHNP-led consortium secured a deal to build the Barakah nuclear power plant in the United Arab Emirates.

Ahn highlighted that the Czech Republic is considering building two additional reactors at another power plant in Temelin, and KHNP is evaluating whether to submit another bid.

"This collaboration will serve as the starting point for building a long-term partnership," he added.