Finalized $18B Czech nuclear plant deal opens door to European market for Korea

Korea finalized a major deal to export nuclear reactors to the Czech Republic, a breakthrough that marks the country’s first entry into the European nuclear power market and underscores global recognition of Korea’s nuclear technology.

Korea Hydro & Nuclear Power (KHNP) announced Thursday that it had signed a contract with EDU II, a subsidiary of the Czech utility CEZ, to build two nuclear reactors in the Dukovany region. The deal, valued at approximately 407 billion Czech koruna ($18.7 billion), is the largest infrastructure project in the country’s history.

“The fact that Korea, once an importer of European reactors, is now exporting them to Europe is highly meaningful,” KHNP said in a statement.

Government and industry sources are also discussing the possibility of President Lee Jae-myung visiting the Czech Republic later this month to attend a contract-signing ceremony.

The project involves constructing two reactors in the Dukovany region and is the largest infrastructure deal in Czech history. Confirmation by Prague of an additional plan to build two more reactors in the Temelin region — for which KHNP is considered a strong contenders — could lead to a windfall of over 50 trillion ($36.8 billion) won in total economic benefits.

This contract is expected to provide new momentum for Korea’s nuclear ecosystem. The project allows KHNP, as the primary contractor, along with Korea Power Engineering Company for design, Doosan Enerbility for main equipment and construction, Daewoo E&C for construction, Korea Nuclear Fuel for fuel supply and Korea Plant Service & Engineering for commissioning and maintenance to enter the European market for the first time.

“Nuclear energy is a comprehensive industry,” said Chung Bum-jin, a professor of nuclear engineering at Kyung Hee University. “This export project has opened the door for Korea’s nuclear technology and related sectors — like construction and equipment manufacturing — to expand into Europe.”

“With the United States planning to build up to 300 new reactors, we are seeing a major global nuclear revival, and Korea has proven its capabilities before the market fully opened.”

Large-scale nuclear projects create jobs and foster technological advancement across the entire supply chain — from design and component manufacturing to construction, operation, and long-term maintenance. KHNP President Whang Joo-ho said, “We will make every effort to execute the project thoroughly and strengthen the global competitiveness of Korea’s nuclear ecosystem.”
Still, Korea is not entirely out of the woods. One major hurdle is overcoming France’s resistance to its entry into the European market.

After losing the Czech bid, the French utility EDF filed a lawsuit and an injunction request with the Czech Republic’s Brno District Court, claiming that KHNP was only able to bid low thanks to support from the Korean government. Although the Czech Supreme Administrative Court dismissed the injunction request the following day, allowing the contract to proceed, the main lawsuit remains ongoing.

This means KHNP must move forward with the project while simultaneously addressing legal challenges. There is also the risk of the European Commission launching an investigation into whether KHNP violated the Foreign Subsidies Regulation in response to EDF’s complaint.

Another variable is the Lee administration’s energy policy, which is centered on renewable energy. The new president’s nuclear policy emphasizes the continued operation and safety reinforcement of existing reactors rather than building new ones.

Industry insiders believe that if President Lee attends the Czech signing event in person, it could send a strong signal of the government’s commitment to nuclear exports. If Lee attends the NATO summit scheduled for June 24–25 in The Hague, he may adjust his travel plans to include a visit to the Czech Republic.

A nuclear industry expert said, “Considering the significance of this export deal, it would be appropriate for the president to attend the event on behalf of the state.” A government official added, “Nothing has been confirmed yet, as the Cabinet has not been finalized.”

KHNP plans to open a project office at the Dukovany site to begin work in earnest. It will soon dispatch personnel, initiate site assessments and begin early-phase tasks. Subcontracts will be signed with each member of the Korean consortium, and a separate briefing will be held for Korean companies hoping to participate in the Czech nuclear project. Construction of the Dukovany reactors is scheduled to begin in 2029, with operations targeted to begin in 2036.

Source: Korea Joongang  Daily