Yoon's trip to Czech Republic focuses on nuclear energy alliance, opens doors to more deals

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Yoon's trip to Czech Republic focuses on nuclear energy alliance, opens doors to more deals

Published: 22 Sep. 2024, 19:07 Updated: 22 Sep. 2024, 20:07

SARAH KIM
kim.sarah@joongang.co.kr

Korean President Yoon Suk Yeol, left, and Czech Prime Minister Petr Fiala shake hands after signing agreements on nuclear energy cooperation at Doosan Skoda Power in the Plzen industrial park in the Czech Republic on Friday. [PRESIDENTIAL OFFICE]

PRAGUE — With eyes set on inking a major nuclear power plant deal next spring, President Yoon Suk Yeol wrapped a four-day official visit to the Czech Republic on Sunday that focused on building a nuclear energy alliance and strengthening the strategic partnership with the Central European nation.

During Yoon’s visit, Korea and the Czech Republic signed a total of 56 memorandums of understanding (MOU) and other documents, including those laying the foundation for cooperation across the full cycle of the nuclear power plant ecosystem.

In July, the Czech government selected a Korean consortium comprising Korea Hydro & Nuclear Power (KHNP), Doosan Enerbility and Daewoo Engineering & Construction as the preferred bidder for an estimated 24 trillion won ($17.3 billion) project to build two nuclear reactors in Dukovany.

On Thursday, Yoon and Czech President Petr Pavel held a bilateral summit in Prague and attended a bilateral business forum the following day. On Friday, Yoon and Prime Minister Petr Fiala visited nuclear energy parts manufacturers Doosan Skoda Power and Skoda JS, held a working luncheon and gave a joint news conference afterward.

The summit and various meetings were an occasion for the two sides to address and assuage concerns about possible legal hurdles after U.S. company Westinghouse Electric and France's EDF filed appeals, posing possible challenges to Korea and the Czech Republic signing a legally-binding agreement next March.

It also could provide an opportunity for Team Korea to secure additional nuclear power plant orders in the country in the future and for the Czech Republic to serve as a partner in nuclear energy cooperation in other parts of Europe.

President Yoon Suk Yeol, left, speaks during a joint press conference with Czech President Petr Pavel at the Prague Castle Thursday following their bilateral summit during the Korean leader's official visit to the Czech Republic. [PRESIDENTIAL OFFICE]

Optimism for a final deal

Through a bilateral summit on Thursday, Yoon and Pavel indicated that they were on the same page, minimizing concerns over any legal challenges to the final nuclear power plant deal being inked.

After arriving in Prague on Thursday afternoon, Yoon and first lady Kim Keon Hee were received by Pavel in an official welcome ceremony at the Prague Castle and observed an honor guard. The Korean and Czech presidential couples held a private meeting. Yoon and Pavel then took part in a bilateral summit with their aides and were joined by their first ladies for an official dinner banquet.

The Korean and U.S. governments are “forming a firm consensus on nuclear power plant cooperation," Yoon said in a joint press conference at the Prague Castle, offering assurances that the two sides are working to resolve any legal obstacles regarding Westinghouse.

The U.S. firm claims that the Dukovany deal could violate its intellectual property, arguing that KHNP's APR1000 plant designs utilize its licensed technology and would require its consent for use in a third party project.

"I am confident that this will be resolved, just as it was with the Barakah nuclear power plant in the United Arab Emirates (UAE),” Yoon said.

The deal, if a final contract is inked, will mark the first time that Korea has won an overseas nuclear reactor project following its contract to build the Barakah plant in the UAE in 2009.

In the press conference, Pavel stressed that it would be "beneficial” for the dispute to be resolved smoothly, noting that reaching an agreement will be advantageous for all sides.

Yoon likewise stressed that building nuclear power plants jointly is a step toward forming a "nuclear energy alliance" as the two sides will cooperate not only in developing new technologies but also in training personnel.

Pavel, in turn, said that if Korea seals the final deal for the Dukovany nuclear power plant project, "there is great potential for cooperation between Korea and the Czech Republic," as well as with other European countries such as Poland and Slovakia.

"We can work together to advance into third countries," he added, indicating that the Czech Republic could be a gateway for Korea to other parts of Europe.

Pavel noted that the tender provides “a huge opportunity” for Czech industries, as the level of involvement of its companies could reach up to 60 percent.

The Czech president reportedly expressed optimism that the Korean consortium would win the contract to build the Dukovany nuclear power plants during the summit talks, Kim Tae-hyo, principal deputy national security adviser, said in a press briefing after the summit.

Pavel was quoted as conveying that the Czech Republic "has high expectations for Korea's participation in the Dukovany nuclear power plant project" and is "optimistic" about KHNP securing the final deal.

This comes as Korea's Nuclear Safety and Security Commission earlier this month approved the construction of the new Shin-Hanul 3 and 4 reactors in Uljin, North Gyeongsang, some eight years after KHNP applied for permits, an indication of the Yoon administration’s commitment to growing its nuclear energy ecosystem.

The Czech side hinted that the success of the Dukovany project could provide an opportunity for Team Korea to win additional orders for the construction of two more units at a nuclear power plant in Temelin, operated by the state-run CEZ.

During the press conference with Yoon, Pavel said speculating on the Temelin bid is “premature as the final contract [for the Dukovany project] has not been signed," adding that any additional selection will “depend on how successful this project is.”

President Yoon Suk Yeol, front right, inspects a production facility at Skoda JS, a Czech nuclear energy company, in Plzen, an industrial city in the Czech Republic, on Friday. [PRESIDENTIAL OFFICE]

Partnering in nuclear energy

In a trip symbolic of a growing nuclear energy partnership, Yoon, accompanied by Czech Prime Minister Petr Fiala, visited Friday turbine manufacturer Doosan Skoda Power in Pilsen, also known as Plzen, an industrial city in western Bohemia southwest of Prague.

The leaders took part in a signing ceremony sealing a nuclear power plant life cycle cooperation agreement, joined by representatives of companies, institutions and organizations related to the nuclear energy industry from both countries.

Doosan Skoda Power, Doosan Heavy Industries & Construction's Czech steam turbine-making subsidiary, is expected to provide its turbines and blades to KHNP if Korea is selected as the final contractor for the new Czech nuclear power plant construction project. Doosan Skoda Power has supplied turbines to some 26 European nuclear power plants.

Yoon said that the nuclear power plant project presents an opportunity for Korea and the Czech Republic to become “future leaders in the era of the global nuclear power renaissance.”

He promised that the Korean government “will spare no effort to ensure that today's nuclear power plant cooperation promises are faithfully implemented.”

During the visit, 13 MOUs were signed in key sectors making up the nuclear power plant ecosystem, including in nuclear power plant design and operation, nuclear fuel and waste management.

The agreements signed by the two countries' leaders included nuclear power plant cooperation, securing the supply of turbines for the Czech nuclear power plant project, bilateral nuclear technology cooperation, the establishment of a nuclear cooperation center and the localization of equipment and materials for the reactor project.

“Team Korea has been safely constructing and operating nuclear power plants for more than 50 years," Yoon said, noting that Korea will be the "optimal partner" to keep its promise of "On Time, On Budget" in the construction of nuclear power plants in the Czech Republic.

The two leaders later jointly inspected Skoda JS, a Czech nuclear power plant equipment manufacturer owned by Czech electricity producer CEZ.

Later on Friday, Yoon and Fiala held a working luncheon meeting in Prague and a joint news conference reflecting on the results of their talks.

“I hope that Korea and the Czech Republic, as strategic partners, will be reborn as a nuclear energy alliance that looks forward to the next 100 years together,” Yoon said.

He noted that the Korean government plans to invest some $37 million over the next decade to promote joint research and development in areas such as nuclear fuel technology, synthetic pharmaceuticals and artificial intelligence.

Fiala highlighted that the increased number of flights between the two countries will also provide an opportunity to develop the strategic partnership in a more “meaningful” way.

Korean President Yoon Suk Yeol, back left, and Czech President Petr Pavel, back right, watch Korean Foreign Minister Cho Tae-yul and his Czech counterpart, Jan Lipavsky, sign a memorandum of understanding on cooperation for Ukraine’s reconstruction at Prague Castle on Thursday. [PRESIDENTIAL OFFICE]

Joint action

The 56 MOUs and documents signed between the two governments, institutions and companies during Yoon's Czech visit covered various sectors and industries to strengthen the countries' bilateral strategic partnership.

On this trip, Yoon was joined by a business delegation that included leaders of Korea’s top conglomerates including the heads of Samsung Electronics, Hyundai Motor, LG and SK.

Yoon and Fiala issued a joint statement Friday on the strengthening of the strategic partnership, sharing their intent to further bolster cooperation in the fields of nuclear energy, trade and investment, science, technology and innovation, ICT, cybersecurity, infrastructure and transportation, tourism, culture and sports.

The leaders also recognized the “close interconnection between the security of Europe and the Indo-Pacific” and expressed their support for a “comprehensive, just and lasting peace in Ukraine.”

On Friday, the two countries' foreign ministries adopted an action plan for the implementation of the strategic partnership between Korea and the Czech Republic for 2025 to 2027.

The plan covered cooperation in politics and security; the economy, industry and transportation; science, technology and innovation; environmental protection and climate change; culture, education and people-to-people exchanges; and East Asia, Indo-Pacific and Korean Peninsula issues.

Regarding infrastructure cooperation, the two agreed to strengthen bilateral cooperation in the development, operation, maintenance and financing of high-speed rail systems.

The two countries also agreed to support the development of comprehensive economic cooperation in the field of advanced manufacturing, supply chains, carbon-free energy, civil nuclear energy and collaborative action through supply chain and energy dialogue between their respective trade ministries. They also agreed to advance cooperation in high-tech industries such as nuclear power plants, batteries, semiconductors, future vehicles and robotics.

Regarding the designation of KHNP as preferred bidder for the new nuclear power plant project, the two sides agreed to pursue strategic cooperation in the fields of nuclear energy and research and development. They also expressed support for the involvement of the local industry in the implementation of KHNP's new nuclear power source projects in the Czech Republic.

The first MOU on Ukraine reconstruction cooperation was signed between the two countries' foreign ministries.

Korea and the Czech Republic established a strategic partnership in 2015, and next year marks the 35th anniversary of bilateral ties following the establishment of diplomatic relations in 1990. The Czech prime minister is scheduled to visit Seoul next year to mark the anniversary.

A senior government official who accompanied Yoon told reporters in Prague, “Long conversations with the Czech prime minister, president and cabinet members indicated that they were not considering any other alternative partner for the Dukovany project.”

In July, ahead of the Czech government’s selection of Korea as the preferred bidder for its reactor project, Industry Minister Ahn Duk-geun was dispatched to Prague by Yoon as a presidential envoy with a personal letter promising a comprehensive package for support in industrial sectors, a presidential official said. Yoon’s visit is seen to have brought to fruition such promises.

While legal hurdles remain for the signing of the final nuclear reactor project deal, Seoul officials have indicated that the Korean and U.S. governments have been working on resolving the issues.

On Friday, Yoon met with Milos Vystrcil, president and speaker of the Czech senate, and Marketa Pekarova Adamova, speaker of the Chamber of Deputies, the lower house, calling on the Czech parliament to support the nuclear power plant project. The presidential couple later met with Koreans living in the Czech Republic who have contributed to the two countries' bilateral ties.

Yoon and first lady Kim Keon Hee arrived at Seoul Air Base in Seongnam, Gyeonggi, at around 6 a.m. and were greeted by presidential aides and conservative People Power Party (PPP) Chairman Han Dong-hoon.

President Yoon Suk Yeol, right, is greeted by People Power Party Chairman Han Dong-hoon, left, as he arrives at Seoul Air Base in Seongnam, Gyeonggi, Sunday morning, ending a four-day official visit to the Czech Republic. [JOINT PRESS CORPS]

BY SARAH KIM [kim.sarah@joongang.co.kr]