Business APAC
June 5, 2025
It’s a major moment for the global nuclear industry. A consortium spearheaded by Korea Hydro & Nuclear Power (KHNP) has reportedly locked in a landmark agreement, potentially worth up to $19 billion, to build new nuclear reactors at the Dukovany site in the Czech Republic. This deal didn’t happen overnight; it’s the culmination of a long, tough bidding process, navigating geopolitical undercurrents and intense lobbying. Ultimately, this success in the Czech nuclear deal highlights the growing muscle of South Korea’s approach on the global stage, pushing aside strong contenders like France’s EDF.
Sources suggest the agreement was finalized just last week. It covers the construction of at least one new reactor, with the possibility of three more down the line. This is a significant step for the Czech Republic in bolstering its energy security and transitioning away from coal. For South Korea, it’s a massive win, validating its government-backed industrial policy and its drive to be a key player in exporting nuclear reactors worldwide.
The Art of Tender Diplomacy: More Than Just Numbers
What was a key ingredient in South Korea’s winning recipe? It seems their savvy “tender diplomacy” played a crucial role. This wasn’t just a commercial pitch. The Koreans brought a full-court press, with high-level government officials and ministerial delegations making multiple trips to Prague. They didn’t just discuss the technical strengths and financial benefits of KHNP’s offer; they also emphasized broader strategic partnerships, hinting at potential collaborations in supply chains, R&D, and other areas.
“We saw an incredibly coordinated push from Seoul,” remarked a European energy analyst who followed the negotiations closely. “This wasn’t KHNP acting alone; it was ‘Team Korea.’ They laid out a comprehensive vision that went far beyond the power plant itself, tapping into the Czech government’s wider economic and tech goals. This holistic approach to winning major international tenders, demonstrated clearly in the Czech nuclear deal, paid off.” A significant part of their pitch also rested on their recent success with the Barakah nuclear plant in the UAE – a project that’s become a powerful showcase of their ability to deliver.
Smart Pricing, On-Time Delivery, and Proven Tech
Czech nuclear deal
While the precise financial terms are still under wraps, industry insiders point to KHNP’s pricing as exceptionally competitive. But it wasn’t just about the initial cost. The financing deal, likely bolstered by South Korean state-run financial institutions, came with attractive terms. This aggressive, yet carefully planned, financial approach, combined with Korea’s reputation for delivering projects on time and within budget–a huge selling point given the delays and cost blowouts seen in some European nuclear ventures – gave their bid a distinct advantage.
At the heart of their proposal is the APR1400 reactor, a Generation III+ pressurized water reactor that already has a solid track record. Its successful operation in both South Korea and the UAE offered concrete proof of its safety, reliability, and efficiency. “When you’re looking at an investment that will last for decades, like a nuclear plant, you need to see proven performance and a clear history on complex projects,” commented a Czech official involved in the evaluation, who asked not to be named. “The Korean bid offered a high level of assurance on these fronts.” This focus on minimizing risk for the client was a central pillar of their successful pursuit of the Czech nuclear deal.
State-Backed Power: An Export Model That Delivers
The Dukovany deal is a textbook example of how effective South Korea’s state-backed export model can be for massive infrastructure projects. KHNP, as part of the state-owned Korea Electric Power Corporation (KEPCO), had the full support of the South Korean government. This unified strategy—tying together government guarantees, backing from export credit agencies, and teamwork with a strong domestic supply chain—creates a framework for risk management and financial structuring that’s tough for purely private-sector bids to beat.
“The competition was undeniably stiff, and EDF certainly had a strong technical proposal,” an industry source shared. “But the sheer cohesiveness of the Korean package – covering everything from financing and promises of local supply chain involvement to a solid training program for Czech staff – was what ultimately tipped the balance. The thoroughness of the Korean package, a key factor in the Czech nuclear deal, was a game-changer.”
Looking Ahead: A Nuclear Contender Rises
Winning the Dukovany project, a significant Czech nuclear deal, is a huge stride toward South Korea’s goal of exporting 10 nuclear reactors by 2030. This victory, hot on the heels of other international expressions of interest and smaller component agreements, firmly plants South Korea as a top contender for future nuclear projects in Europe and elsewhere, especially as countries look to boost their energy independence and hit their decarbonization targets.
The triumph in the Czech Republic will likely further sharpen and encourage South Korea’s strategy for securing future international projects. As one Seoul-based policy analyst put it, “This is about more than just a single deal. It’s about establishing South Korea as a reliable, long-haul partner in global nuclear energy. The Czech win is proof of a national strategy that was meticulously planned and brilliantly executed.” The spotlight now turns to project delivery, where making good on their commitments will be vital for cementing their hard-earned global standing.
