South Korea nears Czech nuclear deal; Doosan, related stocks fly high

South Korea’s nuclear energy stocks surged this week as momentum builds around a landmark nuclear power project in the Czech Republic, with investors anticipating a formal contract signing as early as next month.

On Friday, Doosan Enerbility Co. closed up 3.7% at 27,900 won, capping a 38.5% rally since April 10.

Other nuclear-related stocks have also posted strong gains over the past couple of weeks.

Woojin Ntec Inc. has risen 39.3% since April 10, while Korea Electric Power Industrial Development Co. climbed 29.1%. KEPCO Engineering & Construction Co. (KEPCO E&C) advanced 32.7%.

The rally comes amid expectations that Team Korea – a consortium of South Korean firms including Doosan – will soon clinch a long-awaited agreement for the construction of a nuclear power plant in Dukovany, Czech Republic.

The 400 billion-crown ($17.1 billion) project, one of Europe’s largest nuclear infrastructure initiatives, has entered its final negotiation phase.

UOHS REJECTS EDF’S APPEAL, CLEARING HURDLE FOR TEAM KOREA

In a key development, the Czech Republic’s antitrust authority, UOHS, recently dismissed an appeal from France’s Électricité de France S.A. (EDF), which had contested the selection of the Korean-led consortium as the preferred bidder.

The ruling removed a major legal hurdle that had delayed the final contract since Team Korea’s preliminary selection in July 2024.

Industry officials now expect the final signing to take place as early as May 7.

“The EDF challenge was the last meaningful barrier,” said an industry official. “With that cleared, the market is anticipating a swift close to negotiations.”

In another significant development, South Korea's state-run Korea Hydro & Nuclear Power Co. (KHNP), which is leading the Korean consortium, in January reached an agreement with US-based Westinghouse Electric Co. to end their protracted intellectual property rights dispute over nuclear power plant technology.

A Korean consortium led by KHNP was selected in July 2024 as the preferred bidder to build nuclear reactors in the Czech Republic, beating EDF and Westinghouse, for the $17.1 billion project.

But the deal's signing was put off after Westinghouse and EDF filed complaints against the decision.

Write to See-Eun Lee at see@hankyung.com

In-Soo Nam edited this article.