{"id":2206984,"date":"2024-10-31T08:00:33","date_gmt":"2024-10-30T23:00:33","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206984"},"modified":"2024-10-30T23:09:10","modified_gmt":"2024-10-30T14:09:10","slug":"czech-contract-delay-tests-south-koreas-nuclear-export-ambitions-in-europe","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/10\/czech-contract-delay-tests-south-koreas-nuclear-export-ambitions-in-europe\/","title":{"rendered":"Czech contract delay tests South Korea\u2019s nuclear export ambitions in Europe"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Czech anti-monopoly office (UOHS) has issued a provisional measure <\/span><a href=\"https:\/\/www.cez.cz\/cs\/pro-media\/tiskove-zpravy\/vyjadreni-skupiny-cez-k-predbeznemu-opatreni-uohs-201803\"><span style=\"font-weight: 400;\">temporarily halting<\/span><\/a><span style=\"font-weight: 400;\"> the contract with South Korea\u2019s Korea Hydro &amp; Nuclear Power Company (KHNP) following <\/span><a href=\"https:\/\/koreapro.org\/2024\/09\/south-koreas-17b-czech-nuclear-bid-faces-us-french-legal-complaints\/\"><span style=\"font-weight: 400;\">legal complaints<\/span><\/a><span style=\"font-weight: 400;\"> from Westinghouse Electric (U.S.) and EDF (France). This procedural block could impact KHNP\u2019s timeline as the preferred supplier for the Central European country\u2019s Dukovany Nuclear Power Plant. CEZ, the Czech majority state-owned utility, stated it aims to complete negotiations by March 2025 but must await UOHS\u2019s decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Czech government <\/span><a href=\"https:\/\/koreapro.org\/2024\/07\/south-korea-secures-czech-nuclear-deal-boosting-yoons-energy-export-pledge\/\"><span style=\"font-weight: 400;\">initially selected<\/span><\/a><span style=\"font-weight: 400;\"> KHNP as its preferred bidder in July, planning for KHNP to lead construction of two nuclear reactors, estimated at $17.4 billion. The project represents South Korea\u2019s largest-ever energy export to Europe, a move in line with President Yoon Suk-yeol\u2019s pro-nuclear agenda. Westinghouse, however, contends that KHNP cannot use its reactor technology without U.S. authorization.<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The temporary block poses logistical and strategic challenges for South Korea\u2019s nuclear industry. KHNP\u2019s European debut, if successful, would strengthen South Korea\u2019s position as a competitive nuclear exporter as the EU seeks to <\/span><a href=\"https:\/\/energy.ec.europa.eu\/news\/focus-eu-energy-security-and-gas-supplies-2024-02-15_en\"><span style=\"font-weight: 400;\">diversify energy sources<\/span><\/a><span style=\"font-weight: 400;\">. However, the legal dispute over intellectual property rights may hinder KHNP\u2019s momentum, and further delays could amplify the financial burden given Europe\u2019s stringent <\/span><a href=\"https:\/\/www.ela.europa.eu\/sites\/default\/files\/2024-02\/CZ_UDW_Factsheet_2017-Czech_Republic.pdf\"><span style=\"font-weight: 400;\">labor standards<\/span><\/a><span style=\"font-weight: 400;\"> and environmental regulations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The issue also highlights growing diplomatic challenges for Seoul. South Korea\u2019s nuclear export goals may require lengthy negotiations with the U.S. Westinghouse\u2019s complaint spotlights potential fractures in the U.S.-ROK alliance, particularly as Washington prioritizes <\/span><a href=\"https:\/\/koreapro.org\/2024\/01\/south-koreas-new-focus-on-economic-security-reflects-china-us-trade-concerns\/\"><span style=\"font-weight: 400;\">protecting American business interests<\/span><\/a><span style=\"font-weight: 400;\">. South Korea has <\/span><a href=\"https:\/\/koreapro.org\/2024\/09\/south-koreas-17b-czech-nuclear-bid-faces-us-french-legal-complaints\/\"><span style=\"font-weight: 400;\">reportedly engaged with the U.S.<\/span><\/a><span style=\"font-weight: 400;\"> to resolve the dispute, but it is unlikely that an agreement will be reached until after the next U.S. president has been sworn into office in Jan. 2025, as U.S. policy direction on trade and technology transfer could shift depending on the election outcome.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the Yoon administration, which sees nuclear exports as key to South Korea\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2022\/06\/abandoning-phaseout-south-korea-moves-to-get-nuclear-exports-back-on-track\/\"><span style=\"font-weight: 400;\">long-term energy strategy<\/span><\/a><span style=\"font-weight: 400;\">, the Czech project is a test case that could either bolster or hinder future bids in Europe, particularly as other EU countries, such as <\/span><a href=\"https:\/\/koreapro.org\/2024\/03\/south-korea-romania-emphasize-deepening-ties-amid-global-uncertainties\/\"><span style=\"font-weight: 400;\">Romania<\/span><\/a><span style=\"font-weight: 400;\">, observe the outcome amid their own energy diversification needs. A successful contract would likely bolster Seoul\u2019s standing as the EU transitions away from Russian energy, while failure to finalize the deal could undermine South Korea\u2019s ambitions in Europe and cast doubt on its competitiveness in the global nuclear market.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/inter-korean-foreign-relations\/\"><span class=\"tag\">Inter-Korean &amp; Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The Czech anti-monopoly office (UOHS) has issued a provisional measure temporarily halting the contract with South Korea\u2019s Korea Hydro &amp; Nuclear Power Company (KHNP) following legal complaints from Westinghouse Electric (U.S.) and EDF (France). This procedural block could impact KHNP\u2019s timeline as the preferred supplier for the Central European country\u2019s Dukovany Nuclear Power Plant. CEZ, [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2206991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,28],"class_list":["post-2206984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-inter-korean-foreign-relations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Czech contract delay tests South Korea\u2019s nuclear export ambitions in Europe - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/10\/czech-contract-delay-tests-south-koreas-nuclear-export-ambitions-in-europe\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Czech contract delay tests South Korea\u2019s nuclear export ambitions in Europe - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The Czech anti-monopoly office (UOHS) has issued a provisional measure temporarily halting the contract with South Korea\u2019s Korea Hydro &amp; Nuclear Power Company (KHNP) following legal complaints from Westinghouse Electric (U.S.) and EDF (France). This procedural block could impact KHNP\u2019s timeline as the preferred supplier for the Central European country\u2019s Dukovany Nuclear Power Plant. 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