SEOUL: Industry Minister Ahn Duk-geun on Monday defended the profitability of a proposed nuclear power project in the Czech Republic, addressing concerns over the financial terms of South Korea’s bid. The project, involving the construction of two nuclear reactors in Dukovany, has ignited debates over its economic merits following allegations of price dumping by the South Korean consortium.
According to Yonhap News Agency, Ahn emphasized the project’s economic value during a press meeting, asserting that the deal, estimated to be worth around 24 trillion won (US$17.7 billion), is not only profitable but unparalleled in the nuclear energy sector. ‘We have secured sufficient profitability. Even considering all situations, it has enough economic value, and there are no other projects that can match it in terms of profitability in the nuclear energy industry,’ Ahn stated. This comes in response to accusations that the consortium led by Korea Hydro and Nuclear Power, which was named the preferred bidder in July,
had submitted a bid that was below market price, potentially leading to a financial deficit.
Ahn also refuted claims that the South Korean government had offered Prague a long-term, low-interest loan as part of the deal, describing such views on trade finance as a misunderstanding of standard international business practices. ‘It is regrettable that some consider trade finance as some kind of special treatment, when it is merely a necessary arrangement,’ he commented.
The meeting also covered other economic concerns, including potential government support for the local semiconductor industry and the financial stabilization of Korea Electric Power Corp. through possible adjustments to electricity rates. Ahn assured that the government is actively seeking solutions to bolster Samsung Electronics’ competitiveness in the global chip market and is in discussions about the timing and scale of a possible rate increase to improve the utility company’s fiscal health.
The minister’s statements aim to reassure stakeh
olders of the strategic and economic soundness of South Korea’s international energy engagements, especially as the country looks to expand its presence in the global nuclear power market following its initial foray with the UAE.