France appeals Czech selection of Korea for nuclear project as failed bidders impede deal

France's EDF, which lost out to Korea Hydro & Nuclear Power in the bid for the Dukovany nuclear plant project in July, has appealed the final decision by the European country.

A man fishes with the towering Dukovany nuclear power plant in the background, in Dukovany, Czech Republic, Sept. 27, 2011. [AP/YONHAP]

Korea's selection as the preferred bidder for the Czech Republic's $18 billion nuclear power plant project continues to face friction as France's EDF filed an appeal with the Central European country's antitrust office, following U.S. nuclear firm Westinghouse Electric.

Korea so far remains optimistic, saying "everything will work out fine."

Both Westinghouse and EDF competed with Korea Hydro & Nuclear Power (KHNP) to win the multibillion-dollar project from the Czech Republic. Westinghouse dropped out in January and EDF competed as a finalist but lost to KHNP in July.

"EDF seeks to ensure that the tender process adhered to the principles of fair trade and transparency," EDF reportedly said in a statement Tuesday.

Korea's Ministry of Trade, Industry and Energy is looking into the matter but could not confirm the exact reasoning behind the appeal by the French company.

On Monday, Westinghouse officially announced that it filed an appeal with the Czech antimonopoly office, claiming that KHNP doesn't own the proprietary technology for its nuclear reactor for the project nor the right to sublicense it.

Czech energy giant CEZ Group, in charge of the tender, however, made it clear that unsuccessful bidders cannot file an appeal against the procedure, according to local reports.

The U.S. firm's claim derives from its collaboration with KHNP during the construction of the Gori 1 nuclear reactor in Korea, where it transferred related technologies to Korean companies.

The U.S. nuclear reactor company later filed a suit against KHNP in the United States in 2022 seeking to ban the potential export of Korean reactors, citing the technology-licensing issue. The U.S. court sided with KHNP in September 2023 and Westinghouse appealed.

KHNP CEO Hwang Ju-ho on Wednesday said the state-run company will continue to negotiate on various strategies and policies.

"Westinghouse is saying that Korea needs approval to export since it is their technology, but we are saying that we have the right to export since we have an agreement that was made in 1997," Hwang told lawmakers at a National Assembly forum.

"The suit is in arbitration and we hope that it goes well so that we can finish with the negotiation."

When asked if the latest conflicts could result in the collapse of the deal, Hwang said "it is unimaginable."

"We cannot imagine losing out on the deal or being dropped, and it will certainly not go that way," the CEO said.

The Czech antimonopoly office said it would look into the appeals, according to Reuters.

The main agreement between the KHNP-led consortium and the Czech Republic is scheduled to be signed in March.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]