ED Just as toast's raised, France crashes Korea-Czech nuclear deal

Czech electricity producer CEZ's logo is seen next to an electricity pylon in front of the Ledvice coal-fired power plant near the village of Ledvice, Czech Republic, Feb. 9, 2016. Reuters-Yonhap

The completion of Korea's nuclear reactor construction contract in the Czech Republic was halted at the last minute. As the Korean delegation arrived to sign the agreement with the Czech government, a regional court in Brno accepted an injunction filed by France’s EDF, which had lost in the bidding process. As a result, the court blocked the Czech Republic’s main electricity company, CEZ, from signing the final agreement with Korea Hydro & Nuclear Power (KHNP) for a 26 trillion won ($18 billion) project to build two 1,000-megawatt nuclear reactors, pending a review of EDF’s complaint.

The Korean delegation, which was set to attend the signing and was led by Industry Minister Ahn Duk-geun, stated afterward that only the official signing had been postponed, while other procedures would go on as planned.

It is regrettable that the signing schedule for such a major deal — especially in a sector where Korea holds a competitive edge — has been thrown into uncertainty. Just days earlier, Korea had celebrated the impending contract signing of its first major overseas nuclear project since 2009.

In 2009, a KHNP-led consortium secured a deal to construct the Barakah Nuclear Power Plant in the United Arab Emirates. More recently, President Yoon Suk Yeol —now impeached — and his administration actively pursued overseas nuclear projects, including hosting a summit with Czech President Petr Pavel last year. Although recent political turmoil temporarily cast doubt on these efforts, news of the planned signing had signaled that bilateral cooperation was progressing steadily. We hope the delay does not have any correlation with the fluctuations in Korean domestic politics.

Despite knowing about the EDF's legal actions last week, both the Korean negotiating team and the Czech government continued planning for the signing on Wednesday. However, given the series of legal challenges EDF has pursued since KHNP was selected as the preferred bidder last July, it raises the question of whether the Korean side should have maintained greater vigilance until the final agreement was officially signed. After losing out last July, EDF first appealed the tender decision to the Czech Republic’s competition regulator, UOHS, but the appeal was rejected. Then, just last week, the French energy firm filed a legal suit against UOHS and ultimately secured an injunction.

The plan to build two reactors as part of the Czech Republic’s Dukovany expansion project constitutes a major public energy procurement deal in Czech history. Thus, the stakes were high, and the competition — initially involving KHNP, EDF and the U.S.' Westinghouse — was fierce.

The nation will be closely watching how the Korean negotiating team, which has overcome various challenges — including intellectual disputes with Westinghouse — will ultimately conclude this deal.

In line with the industry minister's assessment of the situation, Czech officials reassured Korea. A spokesman for UOHS was quoted by Reuters as saying, "This is a procedural decision ... We believe our decisions were correct."

Czech Prime Minister Petr Fiala was quoted by Reuters as expressing hope for a quick ruling from the court and added on X that the process had been fair. However, the two nations must now figure out how to address the uncertainty created by EDF's actions.

For Korea, EDF's claims strike at the heart of the country's nuclear energy sector, which has a competitive edge thanks to its "on time and on budget" strategy — a strength Korea cannot afford to let slip. As the AI boom continues and the demand for electricity grows, countries like Korea can capitalize on their competitive prowess. Seoul needs to maintain its position in this sector, as more countries, including Sweden, Finland and other European nations, show increasing interest in nuclear energy to secure stable national energy sources.

The Czech government cannot avoid criticism for failing to proceed with the signing of the agreement with the Korean side, even though the decision was made by a court. It must fully explain the background behind this difficult situation and make every effort to honor the crucial agreement between the two countries.