Tensions mount as France pressures EU over Korea’s Czech nuclear deal

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Tensions mount as France pressures EU over Korea’s Czech nuclear deal

Published: 14 May. 2025, 10:16 Updated: 14 May. 2025, 18:39

Audio report: written by reporters, read by AI

A view of the Czech Dukovany nuclear power plant with units 1 to 4 currently in operation [KOREA HYDRO & NUCLEAR POWER]

France is stepping up diplomatic and regulatory pressure against Korea’s nuclear power contract with the Czech Republic, raising tensions around the multibillion-dollar deal.

The project, assigned to a consortium led by Korea Hydro & Nuclear Power (KHNP) in July last year, is now facing fresh scrutiny from the European Union (EU).

On May 2, European Commission Executive Vice President for Prosperity and Industrial Strategy Stéphane Séjourné — a former French foreign minister — sent a letter to Czech Industry and Trade Minister Lukas Vlcek, calling for the “immediate action to suspend contract signature for the new nuclear reactors of Dukovany and Temelin.”

Séjourné cited an ongoing preliminary investigation into whether KHNP violated the EU’s Foreign Subsidies Regulation (FSR), enacted in 2023.

The FSR targets companies outside the EU that may distort internal markets by receiving unfair levels of state support while participating in EU tenders. The probe was reportedly prompted by a complaint from France’s EDF, which had lost the bid.

Séjourné warned that if Prague and Seoul proceed with the contract, it could undermine the Commission’s ability to enforce the FSR.

Vice President of the European Commission for Prosperity and Industrial Strategy, Stephane Sejourne, attends the second day of the informal meeting of EU economic and financial ministers and central bank governors meeting organized as part of the Polish presidency of the Council of the European Union at the Polish Army Museum in Warsaw, Poland on April 12. [EPA/YONHAP]

“On the basis of the information that was provided, as well as other information that the Commission has uncovered as part of the preliminary review, significant indications remain that [KHNP] has been granted foreign subsidies that are liable to distort the internal market,” Séjourné wrote in the letter sent on May 2.

KHNP rejected the claim, stating that “no subsidies were received” and that the tender began in 2022, before the FSR came into effect. The Czech government and the project’s contracting authority echoed this stance.

The timing of Séjourné’s letter — the same day EDF filed a lawsuit in a Czech court to block KHNP’s contract — has fueled suspicions that the EU is acting under French influence. Critics note that Séjourné is French and that his intervention mirrors EDF’s position.

There are also growing voices within the Czech Republic criticizing France for exerting diplomatic pressure.

Pylons carry high voltage electricity cables past cooling towers operating at the Dukovany nuclear power plant operated by CEZ AS, near the village of Dukovany, Czech Republic, on May 12. [EPA/YONHAP]

In a Czech public broadcaster interview on May 12, Minister Vlcek said the letter “reflects EDF’s perspective” and that its timing was “no coincidence.” Czech utility CEZ CEO Daniel Benes added that France is using “every means possible” to sabotage the deal, warning the government not to yield to EU pressure.

EU spokesperson Thomas Reyniers defended the probe as “a legal move to protect the EU single market,” rejecting suggestions that Séjourné was favoring his home country.

Still, concerns are growing in Prague that French efforts could derail the deal. Czech outlet “E15” quoted Jirí Gavor, head of the Association of Independent Energy Suppliers, as citing several potential risk factors: Korea’s recent martial law declaration, the possibility of a nuclear phaseout under the next Korean administration and KHNP’s exit from Europe under its agreement with Westinghouse.

Pylons carry high voltage electricity cables across a field past cooling towers operating at the Dukovany nuclear power plant operated by CEZ AS, near the village of Dukovany, Czech Republic, on May 12. [EPA/YONHAP]

Petr Barton, a researcher at Czech investment firm Natland, said that France still has a possibility of reclaiming the contract from Korea.

While both the Korean government and KHNP maintain that there is no legal issue, experts within Korea’s nuclear industry are calling for more robust diplomatic and strategic action.

“The Czech project must move forward without wavering, regardless of who leads the next government,” said Jeong Yong-hoon, professor of nuclear and quantum engineering at KAIST. “That commitment must be backed by long-term support for the nuclear sector, and even presidential candidates should issue statements to reinforce it."

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM MIN-JOONG,KIM WON,IM SOUNG-BIN [[email protected]]