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$18B Czech nuclear project a windfall for Korean economy facing headwinds

Published: 01 May. 2025, 18:37 Updated: 01 May. 2025, 19:21

Operating Units 1 to 4 of the Dukovany Nuclear Power Plant in the Czech Republic [KOREA HYDRO & NUCLEAR POWER]

A major nuclear power project in the Czech Republic secured by Korea is poised to deliver significant economic benefits at a time of growing domestic uncertainty.

Korea Hydro & Nuclear Power (KHNP), along with private-sector partners under a “Team Korea” consortium, is scheduled to sign the final contract for the Dukovany nuclear plant on May 7, according to government and industry officials on Thursday.

The announcement comes amid continued political and economic headwinds in Korea.

"Amid a string of challenges — from the declaration of martial law on Dec. 3 last year to the political turmoil of impeachment, an early presidential election and external shocks like the ‘Trump tariffs’ — this is a rare piece of good news,” a Doosan Enerbility spokesperson said.

The project involves building two 1,000-megawatt reactors in the southeastern region of the Czech Republic.

The deal, valued at 26.2 trillion won ($18.3 billion), marks Korea’s first nuclear export since the 2009 Barakah project in the United Arab Emirates and its first successful bid in the European nuclear market.

It also represents Korea’s first inland, freshwater-cooled nuclear plant, requiring additional cooling infrastructure and demonstrating high-level engineering capabilities.

The project is expected to generate wide-ranging benefits. In addition to KHNP, key participants include Doosan Enerbility, Kepco Engineering & Construction, Kepco Plant Service & Engineering and Daewoo E&C.

The government estimates that over 300 component and equipment suppliers could expand into the Czech market as a result.

NH Investment & Securities projects that Kepco’s technical services may claim 10 to 15 percent of revenue, Doosan and related suppliers 20 to 25 percent and builders like Daewoo E&C 30 to 40 percent.

Daishin Securities estimates Doosan could secure roughly 8.5 trillion won — about 44 percent of the overall construction costs.

The Czech Republic’s role as a strategic production base in Europe adds further value.

More than 100 Korean companies operate in the country, particularly in automobiles, electronics and batteries. Hyundai Motor’s Czech plant is a major export hub, and LG and Nexen Tire are both expanding their local footprints.

Doosan's Czech subsidiary, Doosan Škoda Power, is listed on the local stock exchange.

“Beyond the direct economic value, this project helps secure energy reliability for Korean companies operating in Europe,” said Jung Bum-jin, professor of nuclear engineering at Kyung Hee University. “It positions Korea favorably in future global bids, especially for inland nuclear projects.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KI-HWAN [[email protected]]