After many twists and turns, South Korea receives order for two nuclear power plants in the Czech Republic = Why the final contract was reached in such a short time after the ”signing cancellation” last month

Korea Hydro & Nuclear Power, a nuclear power plant operator affiliated with the Korean government, announced on the 5th of this month that it had signed a final contract with the Czech government regarding the construction of a nuclear power plant.
On the 6th of last month, just one day before the signing of the final contract, a Czech court accepted an objection filed by Electricite de France, a competitor of Korea Hydro & Nuclear Power, and the signing ceremony was hastily postponed.
However, the Czech Supreme Administrative Court revoked the provisional injunction issued by the Czech District Court that prohibited the final contract between Korea Hydro and Nuclear Power and the Czech Electric Power subsidiary, so the formal contract was not completed.
This is the first time that South Korea has received an order for a nuclear power plant overseas in 16 years, since the Bakara Nuclear Power Plant in the United Arab Emirates (UAE) in 2009.
Former President Yoon Seok-yeol has been a driving force behind the export of nuclear power plants.
Yoon was looking to boost the economy and revive the nuclear power industry, which had been in a slump under the Moon Jae-in administration before him, as global demand for nuclear power grew.
With a goal of receiving orders for 10 units by 2020, he is actively promoting "nuclear sales diplomacy." In September of last year, he visited the Czech Republic, which is trying to reduce the proportion of thermal power generation and increase the proportion of nuclear power generation.
He and President Pavel discussed strengthening cooperation between the two countries, including winning the nuclear power plant order. In his meeting with Pavel, Yoon said, "This nuclear power plant built jointly by Korea and the Czech Republic is a mutually beneficial project that will contribute to the economic growth of both countries.
The Czech Republic is promoting the construction of four reactors, including the Dukovany nuclear power plant in the Dukovany region, and South Korea is expected to win the contract for the new nuclear power plant construction project in 2022.
Westinghouse and Electricite de France were also hoping to win the order, but Korea Hydro & Nuclear Power highlighted its price competitiveness and ability to meet the construction deadline.
Korea Hydro & Electric Power was awarded the right of first refusal for the construction of two new reactors. However, during this process, rival Electricité de France raised concerns about Korea Hydro & Electric Power's inability to fulfill contracts and violations of foreign subsidy regulations.
Westinghouse has also filed legal action and petitions with the Czech antitrust agency, alleging that Korea Hydro and Nuclear Power is violating its intellectual property rights.
The Czech government had filed a lawsuit against South Korea, but the Czech government later dismissed the complaint. South Korea was scheduled to sign a contract with the Czech government for the new construction of the Dukovany nuclear power plant last month. However,
The Czech Electric Power Corporation continues to insist that there are procedural issues in the order process for Korea Hydro & Nuclear Power. It has filed an application for a provisional injunction with the district court in Brno, the Czech Republic's second largest city, to suspend the execution of the contract.
The court issued a provisional injunction prohibiting the signing of the final contract between Korea Hydro & Nuclear Power and the ordering company until the decision is made on the administrative lawsuit filed by Electricité de France.
The South Korean government delegation, which was heading to the Czech Republic to meet the request, was forced to take urgent action. However, Czech Prime Minister Petr Fiala said on the 4th of this month (local time) that "the final construction of Korea Hydro and Electronics Power Co. and the Dukovany Nuclear Power Plant will be completed.
The signing of the contract became possible after the Czech Supreme Administrative Court overturned a provisional injunction that had prohibited the final contract between Korea Hydro & Nuclear Power and a subsidiary of Czech Electric Power.
The new nuclear power plant project involves the construction of the 1,000-megawatt Dukovany Units 5 and 6 by 2036-37. The total order amount is 400 billion Czech crowns (approximately 2.6 trillion yen).
The Czech Republic is due to hold a general election in October, and when the final contract was postponed last month, it was pointed out that the contract could be postponed indefinitely if the situation changes, such as if the opposition party wins in the Czech Republic.
However, the final contract was reached sooner than most had expected. The Korean newspaper JoongAng Ilbo explained the background to this, saying, "The Czech government, following a provisional injunction issued by the district court, has decided to build the largest power plant in the country, aiming to ensure a stable supply of electricity.
"The nuclear industry also expected the court to make a swift decision, taking into consideration the financial damage caused by the delay in operations and the energy supply problem," he said.
The Administrative Court's decision appears to reflect the concerns of the Czech government and industry."