KHNP vows cost-effective nuclear build, eyes European markets
Although the contract, originally set to be signed this week, has been temporarily delayed by a court injunction following a legal challenge from a losing bidder, Whang emphasized that KHNP is fully prepared to move forward once legal hurdles are cleared.
'While there has been a slight delay, we believe things will progress smoothly, especially since the Czech Cabinet has already approved all aspects of the contract,' Whang told Korean reporters in Prague.
CEZ, the Czech Republic's state-run utility, revealed that KHNP's proposal would enable electricity to be delivered at a cost up to 10 percent lower than that of rival bids from France's EDF and the US-based Westinghouse. Whang attributed this competitiveness to KHNP's long-standing supply networks and decades of nuclear construction expertise.
'We not only have the materials for the 1,000 megawatt reactors, but also proven supply chains developed through past projects, giving us confidence that we can deliver at the promised cost,' Whang said.
The CEO also noted that rival companies have often faced significant challenges, with project timelines extending and budgets ballooning to two or three times the original estimates. 'We've carefully analyzed these factors and believe we're offering the best possible package,' he said.
On concerns of possible cost overruns, Hwang drew a distinction between the Czech project and past challenges faced in the UAE's Barakah project, explaining that any delays there were due to client-added work, not KHNP's failures.
'In the nuclear industry, Korea is widely regarded as one of the rare players capable of consistently delivering on time and within budget,' he emphasized.
When asked whether KHNP's bid for the Czech Dukovany nuclear project offers stronger cost efficiency compared to its past work on the UAE's Barakah reactors, Whang said the Czech contract reflects tighter controls and clear risk-sharing terms.
Domestically, Korea's Shin Hanul 3 and 4 reactors cost just under 6.5 trillion won ($4.6 billion) each for 1.4 gigawatt units. The Czech project's 1.0 GW reactors, though not directly comparable, are expected to come in at a lower cost.
Whang pointed out that the Czech contract is set at a relatively higher price compared to domestic projects due to overseas risk factors, but KHNP has worked to fully hedge those risks through detailed negotiations with CEZ.
For maximum profitability, Whang emphasized leveraging Korean firms' proven supply chains. But where local Czech products or services offer better value, KHNP will work with them.
'The Czech Republic has a strong manufacturing base, and we're helping local partners quickly build the qualifications needed for nuclear work,' Whang said.
CEZ has warned that a delay of several months could result in losses of hundreds of billions of dollars. When asked if KHNP would face similar losses, Whang explained, 'If we had signed yesterday, we could have fully mobilized and accounted for our workforce. Now, with the delay, we still need to retain certain staff, which leads to some losses — but relative to the overall scale of the project, it's not significant.'
Looking beyond the Czech Republic, Hwang described Europe's nuclear contract landscape as a 'battlefield,' emphasizing that trying to break into highly complex legal environments through competitive bidding can drain KHNP's resources.
Instead, he said the company is focusing on less legally burdensome markets like Norway and Sweden, where strong local developers work closely with governments to preselect nuclear sites and actively invite SMR suppliers, making them promising destinations for KHNP's small modular reactors.
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