In July 2024, Czechia selected South Korea’s state-run utility company, Korea Hydro & Nuclear Power (KHNP), as the preferred bidder to build new nuclear reactors. KHNP was chosen to lead the construction of three nuclear power reactor units at Dukovany and Temelin, projects valued at approximately $17.3 billion. This selection was unexpected as Électricité de France (EDF) has long dominated the European nuclear energy sector. Finalization of a deal is expected in March 2025
Czechia is now South Korea’s second successful overseas bid in the nuclear power sector, after building the Barakah Nuclear Energy Plant in the UAE. However, this deal is South Korea’s first nuclear power plant deal in Europe. This deal marks a transition in the global energy market and opens a new opportunity for both Czechia and South Korea.
Any nuclear power project is closely related to both political and economic issues. In the era of climate crisis, reducing carbon emissions is a key issue to tackle climate change and its consequences. Czechia decided to phase out coal by 2033 to reduce carbon emissions, and the decision to build new nuclear power plants is part of Czechia’s shift to new energy sources. Czechia Prime Minister Petr Fiala revealed that Czechia needed to find a solution to provide secure energy supplies at a reasonable price.
Also, geopolitical issues were considered in Czechia’s decision to develop new nuclear power plants. Due to the Ukraine war, energy security is a pressing issue, particularly in eastern Europe where Russian oil and gas were important before 2022. According to Fiala, Czechia chose to invest in nuclear power as a strategy to both advance energy security and meet international climate goals.
Since the Ukraine war, nuclear power has regained its momentum as a reliable energy source in Europe. The South Korean government, which has pledged to export 10 more nuclear power plants by 2030, is keen to take advantage. Winning the Czechia bid is a significant opportunity to build the South Korean nuclear industry’s reputation in the European nuclear market. The nuclear project is expected to bring benefits to the Czech economy with the Czech companies’ participation. Moreover, the two countries will cooperate for further investments and trade relations beyond this deal.
South Korea seems set to successfully move forward as a global nuclear exporter after securing its first new overseas nuclear power project since 2009. However, the deal with Czechia has not been finalized yet, and South Korea faces several challenges on the road ahead.
First, a U.S. company contested KHNP’s successful bid, filing an appeal in August 2024. Westinghouse claimed that the technology for building ARP-100 reactors could not be transferred to a third party without its permission. According to Westinghouse, KHNP based its bid on proprietary technology, which the Korean firm does not have the right to transfer and sublicense.
The legal battle began in October 2022 when Westinghouse filed a lawsuit against KHNP and its parent company, the Korea Electric Power Corp (KEPCO). The issue only intensified after KHNP was successfully selected as the preferred bidder for Czechia’s nuclear power reactors. Fortunately, Westinghouse and KHNP/KEPCO reached a settlement in their intellectual property dispute in January, allowing “both parties to move forward with certainty in the pursuit and deployment of new nuclear reactors” – presumably including the Czechia project.
Another issue that could complicate the Czechia deal is South Korea’s domestic political turmoil. On December 3, 2024, President Yoon Suk-yeol declared martial law; he was subsequently impeached and arrested on insurrection charges. While South Korea awaits the final ruling from the Constitutional Court on Yoon’s impeachment, the country’s nuclear industry hangs in the balance. As president, Yoon has overseen a major push to promote nuclear energy, but leaders from the opposition Democratic Party – including Yoon’s predecessor as well as the DP’s candidate to succeed Yoon – are decidedly anti-nuclear.
Still, Czechia affirmed that the construction of nuclear power plants will not be affected by South Korea’s political crisis.
Czechia-South Korea nuclear deal marks a significant shift in the global energy order, particularly in Europe. Both sides has shown clear political will to move the agreement forward, overcoming several hurdles already. This partnership opens a new phase in the global nuclear market. Amid Western dominance in the nuclear industry, South Korea has obtained a springboard to enhance its status as a major exporter in the global nuclear energy market.