South Korean officials are maintaining a positive outlook regarding an $18 billion nuclear deal with the Czech Republic, despite a recent court ruling that has temporarily halted the project. On May 7, 2025, South Korean Industry Minister Ahn Duk-geun addressed reporters in Prague, assuring them that the decision by a Czech court to block the signing of the contract would only delay the process, not derail it entirely.
The deal, which involves the construction of two nuclear reactors by a South Korean consortium led by Korea Hydro and Nuclear Power (KHNP), was expected to be finalized this week with CEZ, the Czech Republic's largest electricity supplier. However, the Brno Regional Court intervened, granting a preliminary injunction requested by French energy firm EDF, which had lost the bid to the South Korean group.
Minister Ahn expressed confidence that all necessary procedures would continue as planned, emphasizing that the Czech government did not foresee the court's decision as a significant issue. "The Czech government did not think of (EDF’s claims) as a major problem and invited us for the scheduled signing ceremony," Ahn stated, indicating a mismatch between the government’s expectations and the court’s ruling.
Czech Prime Minister Petr Fiala acknowledged the court’s authority while stressing the importance of the project for national interests. He remarked, "I believe that the judges and the court realize how important this decision is and its impact on security of the Czech Republic and our national interests."
In the wake of this setback, CEZ announced its intention to challenge the court's injunction. CEO Daniel Benes confirmed that the company would file an appeal with the Czech Supreme Administrative Court next week, asserting that the matter is crucial to the national interest and urging for swift judicial action.
"We will file a motion next week with the Czech Supreme Administrative Court to dismiss the injunction," Benes said during an energy seminar in Prague. He highlighted that KHNP's bid was the most advantageous, meeting all outlined criteria, and expressed disappointment in EDF's failure to provide a competitive offer.
"KHNP’s bid was the strongest across all criteria — price guarantees, adherence to timelines, and reliability," Benes emphasized, adding that the chosen supplier would be a long-term partner for the next 60 to 80 years, factoring in construction, operation, and decommissioning.
Despite the legal challenges, both South Korea and the Czech Republic are keen to move forward with the project. The deal represents the largest public procurement initiative in Czech history and marks Korea’s first nuclear reactor export since 2009. Construction is slated to begin in 2029, with the first reactor expected to be operational by 2036.
During discussions held on the same day, Trade Ministers Ahn and his Czech counterpart, Lukas Vlcek, reaffirmed their commitment to the nuclear project. They signed agreements to enhance cooperation across various sectors, including energy and technology. Ahn pointed out that the two nations have established a deeper foundation of mutual trust over their 35 years of diplomatic relations.
"The two nations, celebrating 35 years of diplomacy and 10 years of strategic partnership, have established a deeper foundation of mutual trust," Ahn remarked, indicating optimism about the future of the bilateral relationship.
In addition to the nuclear project, the two sides discussed collaboration in high-tech industries, such as battery production and automotive technology, as well as joint responses to European Union regulations concerning battery manufacturing.
As the situation unfolds, South Korea's acting president, Lee Ju-Ho, has pledged to maintain close communication with the Czech government to expedite the finalization of the deal. The country aims to export ten nuclear reactors by 2030, a goal set by former President Yoon Suk Yeol, who had aimed to enhance South Korea's standing in the global nuclear market.
With the Czech government’s backing, the project is poised for progress once CEZ’s appeal against the injunction is resolved. Finance Minister Zbynek Stanjura expressed confidence in the integrity of the bid evaluation process, stating, "We are convinced that the bid evaluation process was carried out correctly and in accordance with applicable laws."
As both countries navigate this temporary setback, they remain committed to advancing the nuclear deal and expanding their strategic partnership. The ongoing discussions and signed agreements reflect a shared vision for future collaboration, not only in nuclear energy but across various advanced industries.
The outcome of the court’s ruling and subsequent appeals will be closely watched, as it will determine the trajectory of this landmark project. Both nations are hopeful that the legal hurdles can be cleared promptly, allowing them to focus on the significant benefits this collaboration could bring to their economies and energy sectors.
In conclusion, while the court's decision has introduced uncertainty into the timeline of the $18 billion nuclear deal, the commitment from both South Korean and Czech officials indicates a strong desire to see the project through. The collaboration could serve as a model for future international energy partnerships, underscoring the importance of nuclear energy in achieving carbon-free targets and enhancing energy security.
