Korea, Poland join forces for $52 bn Ukraine reconstruction projects

President Yoon Suk Yeol, who is on an official visit to Poland, is shaking hands and taking a commemorative photo at a summit with Polish President Andrzej Duda at the Warsaw Presidential Palace on July 13 (local). [Photo by Yonhap]

South Korea’s Yoon administration has agreed to cooperate with Poland on the reconstruction of Ukraine, which will involve an investment of approximately $52 billion.

President Yoon Suk Yeol signed a memorandum of understanding (MOU) on cooperation for Ukraine’s reconstruction following a summit with Polish President Andrzej Duda on Thursday (local time), according to the presidential office.

“Now we have the three-way cooperation system between the governments of the Republic of Korea, Poland, and Ukraine in the reconstruction of Ukraine,” stated the presidential office.

According to the government’s assessment, there are opportunities for Korean businesses to participate in the reconstruction of Ukraine, which is estimated to be worth $52 billion. This estimate is based on $20 billion from a list of 5,000 reconstruction projects proposed by the Ukrainian government to the Korean government, as well as $32 billion from 10 projects being carried out in the private sector.

Many of the 5,000 reconstruction projects proposed by the Ukrainian government to the Korean counterpart focus on pilot modular construction to restore emergency facilities such as schools, houses, and hospitals, as well as technical support to rebuild water infrastructure including the destroyed Kakhovka Dam. Other proposed areas include developing master plans for smart cities and advanced transportation systems for cities like Kiewu and Uman, along with smart water management initiatives.

The private sector projects are mostly large-scale. Hyundai Engineering & Construction Co. is seeking opportunities into the small modular reactor (SMR) market, in cooperation with U.S. companies and Ukrainian nuclear authorities. Samsung C&T Corp. is involved in a smart city project in with Turkish construction companies and Lviv, Ukraine’s second largest city. HD Hyundai XiteSolution Ltd. has plans to supply construction equipment.

“Currently, the private sector-led reconstruction projects identified by the government are valued at about $32 billion. Those areas include SMRs, airport reconstruction, construction machinery, rolling stock, and information and technology,” said the presidential office.

Meanwhile, the presidential office also announced that six MOUs were signed between private nuclear power companies and Polish authorities during the presidential visit to Poland. Hyundai Engineering Co. agreed to cooperate on the introduction of nuclear power generation in Poland. Doosan Enerbility Co. agreed to cooperate in the construction of new nuclear power plants in the country, and Daewoo Engineering & Construction Co. would collaborate in the civil engineering field for the construction of these plants. The Korea Institute of Technology Evaluation and Planning pledged cooperation in human resource exchange, training, and joint research in the field of nuclear energy. BHI Co. would cooperate in the supply of nuclear equipment for the Patnow power plant.