Exclusive-South Korea's Yoon confident Czech nuclear plant deal will be completed despite legal concerns

By Hyonhee Shin

SEOUL (Reuters) - South Korea is confident it can overcome any obstacles to a multi-billion dollar project to build a nuclear plant in the Czech Republic, despite appeals against the deal launched by EDF (EPA:EDF ) and Westinghouse, President Yoon Suk Yeol told Reuters.

Yoon, in a written response to questions ahead of his Sept. 19-22 visit to the Czech Republic, said the trip was partly aimed at ensuring the final contract was concluded seamlessly, adding that the project's success was of "paramount importance".

The Czech Republic in July picked Korea Hydro & Nuclear Power (KHNP) to build two new nuclear power units, and possibly more, in its largest-ever energy investment initiative.

But an appeal by Westinghouse - on the grounds that KHNP lacks a licensing agreement to export reactors which are based on the U.S. group's technology - has emerged as a potential obstacle. France's state energy firm EDF has also appealed the Czech decision after losing in the final tender round.

Yoon said Seoul and Washington were working to create an "amicable atmosphere" among businesses in the nuclear energy sector as part of efforts to iron out any differences over intellectual property rights and expedite collaboration.

"I believe this effort will help facilitate a smooth resolution to any dispute that might arise between the two sides," he said. "There is no need to worry about the Czech Republic's nuclear power plant construction project."

Yoon's trip comes as Seoul and Prague celebrate the 35th anniversary of diplomatic relations. He is due to hold talks with Czech President Petr Pavel and Prime Minister Petr Fiala and to visit nuclear energy companies in Plzen, his office said.

SECURITY TIES

Since coming to power in 2022, Yoon has sought to ramp up security ties with European countries and NATO, partly propelled by deepening military cooperation between North Korea and Russia.

Seoul and Washington have accused Pyongyang of providing missiles, munitions and other weapons to Moscow for use in the war in Ukraine, in return for economic and other military assistance. Moscow and Pyongyang have denied this.

North Korea fired multiple short-range ballistic missiles on Wednesday, the second such launch within a week. The South's military has said last week's test of what the North described as a new 600-mm multiple launch rocket system could be intended for export to Russia.

Yoon said he would explore joint responses with Czech leaders to address North Korea's nuclear and missile development and Pyongyang's increasing military transactions with Russia.

"Their illicit military and economic cooperation... has greatly underscored the need to strengthen cooperation with countries in Europe like the Czech Republic, which share the same values as us," Yoon said.

After North Korea and Russia this year clinched a strategic partnership treaty, Yoon's administration warned that it could consider arming Ukraine with lethal weapons, a potential shift from its policy of sticking to humanitarian and economic aid, if Moscow supplied Pyongyang with advanced weapons technology.



Yoon declined to specify what his red line would be but said that North Korea and Russia would face consequences if they threatened South Korea's security.

"Any actions threatening the safety and lives of our people cannot be tolerated," he said.

Source: Investing.com