Trade Minister Kim: "Government to Step Up Oversight to Keep Czech Nuclear Project on Track"... Contractor Switch to Accelerate

Chairs Review Meeting on Team Korea's Czech Nuclear Project Progress
Government's Emergency Management System Fully Activated After Construction Contract Talks Collapse
Kim Jeonggwan: "State-Run Nuclear Companies Must Take Greater Responsibility and Show Stronger Leadership"

Minister of Trade, Industry and Energy Kim Jeonggwan delivers opening remarks at a meeting to review the progress of Team Korea's Czech nuclear power project at the Government Complex Seoul in Jongno-gu, Seoul, on the 12th. Ministry of Trade, Industry and Energy.

Kim Jeonggwan, Minister of Trade, Industry and Energy, said the government would strengthen its oversight of state-run nuclear power companies in response to the breakdown of negotiations on the construction contract for the Czech Republic's Dukovany nuclear power project. With concerns about delays mounting after negotiations with the original contractor ended, the government will directly review the project schedule and key issues and actively use high-level consultation channels with the Czech government. Korea Hydro & Nuclear Power (KHNP) plans to select a new contractor by July 2027 and minimize any gaps in work during the contractor transition.

At the "Team Korea Czech Nuclear Power Project Progress Review Meeting" held at Government Complex Seoul on the 12th, Minister Kim said, "To preserve Team Korea's trust and cooperation and further strengthen the competitiveness of Korea's nuclear power industry, we will strengthen the government's oversight role so that state-run nuclear power companies take on greater responsibility and leadership."

He added, "Through this meeting, we will share among companies our experience of entering a new market with a new reactor model, and explore how the government can provide administrative and diplomatic support to find solutions to current issues."

The meeting was part of the emergency management system led by the minister and vice minister of the Ministry of Trade, Industry and Energy, which was activated after negotiations on the Dukovany construction contract between KHNP and the Daewoo E&C-Doosan Enerbility consortium finally broke down on October 29. Following a meeting on KHNP's action plan chaired by the vice minister on November 2, this meeting was held to review progress across the state-run nuclear power companies participating in the project.

All Team Korea state-run companies participating in the Czech nuclear power project attended, including KHNP, KEPCO Engineering & Construction, KEPCO Nuclear Fuel, and KEPCO KPS. They discussed detailed plans and cooperation measures for each organization to ensure that key milestones—a construction permit application in April 2027 and the start of construction in November 2029—are met without disruption.

In particular, the government and participating companies agreed to focus their efforts on maintaining confidence in "On Time, On Budget"—meeting established deadlines and staying within budget—which is considered a key competitive strength of Korea's nuclear power industry, even during the contractor transition.

KHNP announced a detailed action plan for follow-up measures after the construction contract negotiations ended, divided into three areas: carrying out work during the contractor transition, selecting a new contractor, and meeting key project milestones.

First, to minimize gaps in work caused by the contractor transition, KHNP has broken down tasks such as design and permitting, verification of site information, and preparation of accommodation sites. It will distinguish between work KHNP can perform directly, work that can be handled by Czech companies with which contracts have already been signed, and work requiring new contracts, and establish separate weekly action plans for each.

KHNP aims to complete the selection of a new contractor by July 2027. It plans to shorten the selection period compared with a typical open competitive bidding process while applying the comprehensive evaluation bidding system under the State Contract Act to ensure the contractor's ability to carry out the work and the transparency and fairness of the bidding process.

To this end, KHNP will set up a joint task force (TF) with KEPCO Engineering & Construction and prepare the bidding process with reference to bid documents for Shin Hanul Units 3 and 4. It will also pursue plans to provide detailed guidance on participation requirements at a preliminary briefing session.

Kim Hoecheon, president of KHNP, said, "We are proceeding with the relevant procedures with the aim of selecting a new contractor by July 2027, and KHNP will assign additional staff to directly carry out some work until the new contractor is selected."

He added, "We will carefully manage urgent work, such as the design of auxiliary facilities, through separate contracts to ensure that necessary work is not interrupted. We will also do our utmost to ensure that the supply of main equipment and key materials, for which contracts were signed in December last year, proceeds according to schedule."

KEPCO Engineering & Construction, which is responsible for design, said it had submitted approximately 3,800 design documents to date, signed an initial design contract with a Czech engineering company, and was pursuing additional contracts. Kim Taegyun, president of KEPCO Engineering & Construction, said, "We will do our utmost to successfully submit the construction permit application scheduled in five months through thorough design work that meets Czech legal requirements."

KEPCO Nuclear Fuel said it was carrying out work in the nuclear fuel sector according to plan and had provided technical training to the Czech project owner in May and June. KEPCO KPS also said it was responding to requests from the Czech side, including by submitting technical documents required for licensing the construction of a new nuclear power plant.

The government also plans to step up consultations with the Czech government. Minister Kim said, "We will actively use consultation channels at every level, including ministerial-level consultations on the implementation of the Dukovany project, meetings as needed, and weekly director-general-level meetings." He added, "Through close communication, we will maintain confidence in the normal progress of the Dukovany nuclear power project and use these channels to convey to the Czech side the cooperation needed for Team Korea to move the project forward."

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