A view of the Dukovany nuclear power plant in the Czech Republic. The final contract for the 24 trillion-won Dukovany project is expected to be signed on May 7. (Image provided by Korea Hydro & Nuclear Power)
South Korea Secures Major Nuclear Power Deal in Czech Republic, Marking Breakthrough in European Energy Market
SEOUL, April 30 (Korea Bizwire) — For more than a decade, South Korea’s nuclear industry had its eyes set westward. On a Tuesday in April, that ambition finally crystallized into reality.
After months of negotiations and fierce competition with industry heavyweight EDF of France, a South Korean consortium led by Korea Hydro & Nuclear Power (KHNP) sealed a landmark deal to construct two nuclear reactors in Dukovany, Czech Republic.
The victory not only marks South Korea’s first nuclear export to Europe but also signals a strategic turning point: K-Nuclear is no longer confined to emerging markets—it is now playing on the world’s most sophisticated stage.
The Czech project, valued at more than 20 trillion won (approximately $14 billion), is only the second time South Korea has secured a full-scale nuclear construction contract overseas. The first came in 2009, with the Barakah project in the United Arab Emirates, a milestone that catapulted Korean nuclear firms onto the global map.
But Europe, with its entrenched regulatory standards and fierce domestic competition, posed an entirely different challenge.
“This is France’s home turf,” one South Korean official noted. “To break into this market is to prove you can compete with the best.”
South Korea Wins Czech Nuclear Deal, Expanding K-Nuclear Presence in Europe (Image created by ChatGPT)
A Shifting Energy Landscape
The deal comes at a pivotal moment for global energy. The post-Fukushima skepticism surrounding nuclear power has steadily given way to renewed enthusiasm. The war in Ukraine, rising fears over energy security, and surging electricity demand—fueled in part by AI’s explosive growth—have reignited interest in stable, carbon-free energy sources.
In Europe, long reliant on France and Finland for nuclear capacity, a new wave of interest is sweeping across the continent. The Czech Republic, Poland, Bulgaria, Turkey, the U.K., and the Netherlands are all making moves to expand or reintroduce nuclear power. And South Korea, with its “on time, within budget” promise, is increasingly seen as a reliable partner.
“This is not just a contract,” said Jung Bum-jin, professor of nuclear engineering at Kyung Hee University. “It’s validation. It means Korea’s nuclear technology has gained recognition even in the most advanced markets.”
Behind the Curtain: Risk and Reward
Still, behind the celebrations lies a complex web of economic and geopolitical questions. Key details of the Czech deal—including its precise contract value, the extent of localization requirements, and the financial arrangement with U.S.-based Westinghouse—have not been publicly disclosed. These variables could significantly affect profitability.
Barakah Nuclear Power Plant
South Korean firms learned this the hard way. The Barakah project, once touted as a highly profitable venture with an expected 10% margin, has faced delays and rising costs. Its cumulative returns are now reportedly in negative territory, casting a long shadow over Korea’s nuclear export model.
Complicating matters further is the recent intellectual property settlement between KHNP, KEPCO, and Westinghouse. While the agreement allows for joint projects, insiders suggest it may include royalty payments or workshare guarantees that could dilute Korea’s earnings from future deals—Czechia included.
Industry observers also point to the Czech government’s demand for 60% local content, a high bar that could squeeze margins or require significant subcontracting to local firms.
Still, officials remain optimistic. “This isn’t just about profit,” said one government source. “It’s about presence. It’s about establishing Korea as a global nuclear player.”
Looking Beyond Europe
Although KHNP has paused some of its bidding activities in Europe—reportedly stepping back from projects in Sweden, Slovenia, and the Netherlands—government officials insist that Korea has not abandoned the continent. “Many advanced-stage discussions are still ongoing,” one official said. “We’re not stepping away—we’re repositioning.”
In parallel, Korea is intensifying outreach to emerging markets, including Saudi Arabia and Vietnam, where the regulatory environments are less rigid but demand is growing. With global nuclear capacity projected to triple by 2050, according to the World Nuclear Association, new opportunities are on the horizon.
WNA Director-General Sama Bilbao y León recently warned that such growth will require building 20 large-scale reactors and 70 small modular reactors (SMRs) each year. “The rise of the AI industry means more companies will lean on nuclear power,” she said.
A Defining Chapter
For South Korea, the Czech breakthrough is both culmination and beginning—a capstone on years of ambition, and a doorway into future markets where reputation, reliability, and results will be closely watched.
Whether Team Korea’s foray into Europe will yield sustained returns or serve primarily as a strategic beachhead remains to be seen. But for now, one thing is clear: the global nuclear conversation no longer revolves solely around the old guard. Korea has arrived—and it’s here to compete.
Ashley Song (ashley@koreabizwire.com)
