S.Korea confident of winning Czech nuclear plant deal despite court ruling

A landmark nuclear energy export deal between South Korea and the Czech Republic was postponed at the eleventh hour following a local court ruling, dealing a blow to Seoul’s ambitions to expand its atomic energy footprint in Europe. Nevertheless, Korean officials are confident the final contract will go ahead.

The $17 billion agreement to build a nuclear power plant in Dukovany, Czech Republic, was set to be formally signed this week between Czech utility CEZ and Korea Hydro & Nuclear Power (KHNP), Korea’s state-run energy firm leading the “Team Korea” consortium.

The signing, however, was blocked by a Czech court's injunction on Tuesday, after France’s Électricité de France S.A. (EDF) — unsuccessful in the bidding process — filed a legal complaint.

Speaking to reporters in Prague on Tuesday, Korean Trade, Industry and Energy Minister Ahn Duk-geun acknowledged the unexpected turn but expressed optimism.

“This was an unanticipated development, but we aim to conclude the process as early as possible and use it as an opportunity to further demonstrate the strength of Korea’s nuclear capabilities,” he said.

UOHS RULED TWICE AGAINST EDF’S OBJECTIONS

Minister Ahn emphasized that the Czech antitrust authority, UOHS, had twice ruled against EDF’s objections during the tender process, suggesting the main lawsuit is unlikely to jeopardize the contract.

“This is a nationally strategic project for the Czech government, and its delay entails significant opportunity costs. I do not expect Prague to allow an extended postponement,” he said.

The Czech government, which has a majority stake in electricity firm CEZ, was scheduled to sign a contract with KHNP as early as Wednesday.

The court injunction bars CEZ from signing a final agreement with KHNP until the Supreme Administrative Court delivers the final ruling on EDF’s complaint.

It marks an embarrassing setback for Korea, which sent a high-level delegation to Prague to celebrate the deal — seen as a flagship success for its revitalized nuclear export agenda. The Korean delegation included several cabinet-level officials and lawmakers, underlining the deal’s significance.

Despite the postponement, the Korean delegation will proceed with other scheduled activities, including meetings with Czech Prime Minister Petr Fiala and parliamentary leaders, and the signing of various memoranda of understanding, according to Korean officials.

7,000 MAN-DAYS

Last year, CEZ picked a KHNP-led Korean consortium to build two 1,000-megawatt units to expand its Dukovany nuclear plant in a 400 billion-crown ($17.1 billion) project, giving KHNP its first project in Europe. EDF and Westinghouse Electric Co. have since sought to overturn the decision on multiple fronts.

KHNP is leading the Korean consortium, dubbed Team Korea, which includes Doosan Enerbility Co., Daewoo Engineering & Construction Co. and KEPCO Engineering & Construction Co. (KEPCO E&C).

Since KHNP was named the preferred bidder last July, Team Korea engineers have devoted more than 7,000 man-days to the final negotiations, according to KHNP Chief Executive Whang Joo-ho.

“We’ve shown our full capability and were on the verge of conclusion. The delay is disappointing and regrettable,” Whang said, adding that CEZ plans to hold a press conference to explain the legal situation and respond to EDF’s claims.

He criticized what he sees as protectionist tactics by European incumbents.

“The legacy nuclear players in Europe still treat this market as their domain. While we won on merit — on competitiveness and efficiency — they are now turning to legal maneuvers,” the CEO said.

Minister Ahn said that CEZ is reviewing legal options and hinted at a broader concern that the Czech elections in October could add political complexity to the timeline.

“We cannot predict whether the delay will be days or months,” Ahn said. “But there is a shared interest in avoiding unnecessary postponement.”

Write to Dae-Hun Kim at daepun@hankyung.com
In-Soo Nam edited this article.