Korea wins Czech power plant deal

[Anchor]

'Team Korea', led by Korea Hydro & Nuclear Power, has secured a contract to build two new nuclear power plants in Dukovany, Czech Republic.

The project is worth 26 trillion won.

This achievement comes after a fierce competition that began in 2022 among Korea, France, and the United States, marking the fruits of over three years of effort.

This is the first nuclear power export by our companies in 16 years since the Barakah nuclear power plant in the United Arab Emirates in 2009.

It is also evaluated as a significant expansion of the nuclear power export horizon, being the first in the European market.

However, there are challenges, including issues related to securing profitability.

Reporter Park Kyung-jun has more.

[Report]

The Prime Minister of the Czech Republic announced the news of the new nuclear power contract with Korea right after a cabinet meeting.

[Petr Fiala/Czech Prime Minister/Local time April 30: "A contract with KHNP (Korea Hydro & Nuclear Power), the supplier of the new nuclear power plant, will be signed on May 7."]

The final contract was confirmed later than expected, about nine months after being selected as the preferred bidder, partly due to the localization rate requested by the Czech side.

They requested a participation rate of 60% for Czech companies, which is higher than the usual level.

[Ahn Duk-geun/Minister of Trade, Industry and Energy/Apr. 9: "That is not necessarily a condition, but we are trying to meet it as much as possible...."]

The relationship with Westinghouse, which has been entangled in an intellectual property dispute for over two years and agreed to cooperate in entering third countries, is also a hurdle.

The terms of the negotiations are confidential, but if they agreed to provide work or royalties, it could be a direct hit to profitability.

With a scale of 26 trillion won, there are concerns about the profitability of this project.

The Barakah nuclear power plant in the UAE, the first export nuclear plant, did not meet the expected 10% profit margin due to delays.

However, this nuclear power contract is also seen as a stepping stone for 'Team Korea' to secure a foothold for future overseas expansions, including the planned Temelin nuclear power plant in the Czech Republic and other parts of Europe.

[Jung Beom-jin/Professor of Nuclear Engineering, Kyung Hee University: "The U.S. and Europe have much more regulations and laws, and they require higher safety standards, so there were many barriers to entry, but we have overcome all of them...."]

The Dukovany nuclear power plant secured in this contract is a Korean model with a capacity of 1,000 megawatts.

The contract signing ceremony will be held on the 7th, and the goal for test operation is set for 2036.

This is KBS News, Park Kyung-jun.