South Korea Confident Despite Czech Court's Pause on $18 Billion Nuclear Deal
South Korea maintains optimism regarding the halted Czech nuclear reactor project, viewing the court's decision as a temporary setback.
Overview
South Korean officials downplayed a Czech court's hold on an $18 billion nuclear deal, viewing it as a temporary setback. The court's decision prevents CEZ from signing while it reviews EDF's complaint over losing a bid. Officials expressed confidence that the deal will proceed, emphasizing continued communication with the Czech government. The project, led by Korea Hydro and Nuclear Power, is aimed at constructing two nuclear reactors in the Czech Republic.
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Analysis
- The Czech court's decision is perceived as a temporary setback rather than a permanent block to the nuclear project.
- The South Korean government remains optimistic about overcoming the legal challenges and finalizing the deal with the Czech Republic.
- The emphasis is on continued diplomatic communication to resolve the issues surrounding the project.
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The Czech court temporarily halted the $18 billion nuclear deal after EDF, a French firm that lost the bid, filed a civil suit alleging improper procurement procedures. The court's hold prevents CEZ from signing the contract until it reviews EDF's complaint.
The delay is seen as a setback for South Korea, which had hoped the Czech deal would mark a major milestone in its nuclear exports to Europe—its first major project there since the UAE contract 16 years ago. However, officials remain confident the deal will proceed and view the court's intervention as a temporary obstacle.
The Czech government defended the legitimacy of the procurement process, stating it was conducted fairly and in accordance with the law. Prime Minister Petr Fiala publicly expressed confidence in the selection process and urged the court to make a swift decision, highlighting the deal's importance for stable, fairly priced electricity.
The project, led by Korea Hydro and Nuclear Power (KHNP), involves constructing two nuclear reactors in the Czech Republic. KHNP was selected as the preferred bidder in July 2024, and the estimated construction cost is around $17.5–18 billion.
According to the Czech government, key factors in selecting South Korea as the supplier include the ability to provide stable, fairly priced electricity, and offering the best guarantees for the project.
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