Czech Nuclear Project Clears Korean Subsidy Allegations... Dukovany Project Back on Track

EU Concludes Preliminary Review of Foreign Subsidies Regulation, No In-Depth Investigation
KHNP: "Project Will Proceed Smoothly Through Cooperation With Czech Client"
Minister Junggwan Kim: "Competitiveness Proven Through Technological Excellence and Safety"

The European Union (EU) has concluded its preliminary review of the Foreign Subsidies Regulation (FSR) regarding Korea Hydro & Nuclear Power (KHNP) in connection with the new Dukovany nuclear power plant project in the Czech Republic, deciding not to proceed with an in-depth investigation. This effectively indicates that the previously raised controversy over "winning the bid at a low price based on government support" is not deemed problematic.

According to KHNP on June 6, the European Commission (EC) officially notified on June 5 that it had completed the FSR preliminary review related to the Dukovany nuclear power plant project and would not launch a further in-depth investigation. As a result, the subsidy controversy that had persisted since KHNP was selected as the preferred bidder last year has now been brought to a close.

The FSR is a system that examines whether financial support provided by non-EU countries to companies distorts fair competition in the EU internal market. The EC has been conducting a preliminary ex officio review of KHNP and "Team Korea" regarding the Czech nuclear power project since February last year. KHNP cooperated diligently with requests for documentation and explanations, and the EC concluded that no additional in-depth investigation was necessary based on its review.

Junggwan Kim, Minister of Trade, Industry and Energy, expressed his welcome on Facebook, stating, "It is highly significant that the European Commission made this official decision after directly reviewing the relevant matter."

Minister Kim added, "There have been concerns and criticisms domestically, such as whether the project would be invalidated or whether the bid was won at a low price relying on government support. This decision confirms that Korea Hydro & Nuclear Power and Team Korea have pursued the project in full compliance with international norms and EU laws and regulations."

He continued, "This is a meaningful achievement that demonstrates the competitiveness of Korea's nuclear power industry, which is grounded in technological excellence, safety, and project management capabilities. The Dukovany project is not merely a construction project, but a strategic cooperation initiative through which Korea and the Czech Republic will jointly foster technology, industry, and talent for decades to come."

KHNP also believes that this decision has significantly reduced uncertainties regarding the project. The Dukovany project is currently proceeding according to schedule, with post-contract steps such as submitting licensing documents and conducting site surveys underway. KHNP stated, "Going forward, we plan to concentrate our capabilities to ensure the successful execution of the Dukovany nuclear power plant project through close cooperation with the Czech client."

The Korean government also plans to strengthen cooperation with the Czech government to support the success of the project. Minister Kim stated, "It is now time to join forces to increase the project's likelihood of success and maximize national interests," adding, "The government will provide unwavering support to ensure that the Dukovany nuclear power plant project is completed successfully, based on world-class technology and safety."

This content was produced with the assistance of AI translation services.