S. Korea, Czech Republic agree to team up for full cycle of nuclear energy industry

South Korea and the Czech Republic on Friday agreed to collaborate on the entire nuclear energy cycle as President Yoon Suk Yeol visited the European nation to bolster a Korean consortium’s bid to secure a major nuclear plant contract.

Yoon and Czech Prime Minister Petr Fiala attended the signing of memoranda of understanding (MOU) on nuclear energy cooperation during their visit to Doosan Skoda Power and JS Skoda, two nuclear energy companies in Plzen, an industrial city located about 90 kilometers west of Prague.

The agreements come as South Korea’s consortium led by Korea Hydro & Nuclear Power (KHNP) seeks to finalize a contract to build two nuclear reactors in Dukovany, after being selected as the preferred bidder in July.

“The new nuclear reactors will be built together by South Korea and the Czech Republic,” Yoon said during the ceremony. “The Korean government will fully support the faithful implementation of the nuclear energy agreements.”

During the ceremony, 13 other MOUs were signed, covering cooperation across the entire nuclear energy cycle, including construction, operation, maintenance, nuclear fuel management and waste disposal.

Doosan Skoda Power and JS Skoda signed agreements to supply nuclear reactor turbines and turbine blades, respectively, to KHNP. The agreements will be confirmed if a final contract is signed in March next year.

Yoon highlighted Korea’s strong track record in building nuclear reactors “on time, on budget” based on its expertise in constructing and operating nuclear power plants for more than five decades. He also expressed hope for further advancing bilateral economic ties.

“This nuclear deal will elevate the bilateral relationship to more comprehensive, future-oriented cooperation,” Yoon said. “Both nations should harness the momentum from the nuclear energy sector to collaborate across broader industries.”

If finalized, the deal — estimated at around 24 trillion won (US$17.3 billion) — will mark South Korea’s second nuclear power plant export, following its 2009 project in the United Arab Emirates.

The two sides also signed the Trade Investment Promotion Framework, a comprehensive industrial and investment cooperation agreement, and agreed to launch a supply chain economic dialogue.

Later in the day, business leaders of the two countries gathered for a forum to explore areas of cooperation in advanced industries, such as artificial intelligence, batteries and next-generation vehicles.

Attendees included Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, LG Group Chairman Koo Kwang-mo and Hyundai Motor Group Chair Euisun Chung, who accompanied Yoon’s trip as part of an economic delegation.

The trade volume between the two countries has been growing, surpassing $3 billion in 2018, $4 billion in 2021 and reaching an all-time high of $4.4 billion last year. As of 2023, South Korea is the fourth-largest investor in the Czech Republic, with over 100 Korean companies operating in the country.