South Korea secures major nuclear reactor deal in Europe

South Korea’s Korea Hydro & Nuclear Power Co. has been selected to build two multibillion-dollar reactors in the Czech Republic, positioning South Korea as a potential leading supplier of nuclear reactors in Europe.

This strategic win underscores Korea’s cost-competitive, comprehensive package offerings in the nuclear sector.

Significant win for South Korea

Following the announcement, South Korea’s Trade, Industry and Energy Minister Ahn Duk-geun declared: “Now a bridgehead has been established for us to export nuclear plants to Europe.”

The deal could place South Korea in a prime position to meet Europe’s increasing demand for nuclear energy, driven by efforts to reduce reliance on fossil fuels and achieve environmental targets.

Cost-competitive, comprehensive packages

South Korea’s nuclear industry has been recognized for its cost-competitive and comprehensive package offerings, which include equipment, construction, fuel supply, commissioning, maintenance and financing. This integrated approach has allowed Korea to edge out competitors facing budget overruns, delays or geopolitical tensions.

Challenges, competition

However, competition remains fierce. President Joe Biden recently signed a bill to revive the U.S. nuclear industry, facilitating technology exports. Westinghouse Electric Co. has filed a lawsuit against Korea Hydro & Nuclear, alleging intellectual property misuse and threatening legal challenges over the Czech deal.

South Korea’s rise in the nuclear sector is built on decades of strategic development. Since acquiring technology from U.S.-based Combustion Engineering in 1987, South Korea has domestically built 28 reactors, with four more planned by 2040.

The nation’s first international export was to the United Arab Emirates in 2009, a project that, despite delays and cost overruns, solidified South Korea’s export ambitions.