The European Commission (EC) has dropped its preliminary inquiry and has decided not to launch an in-depth investigation into Korea Hydro & Nuclear Power (KHNP) under the Foreign Subsidies Regulation (FSR) regarding the Czech Dukovany NPP project. After a 16-month preliminary review, the EC concluded there were no grounds to believe that KHNP gained an unfair advantage through state subsidies.
The FSR, which came into force in 2023, allows the European Union to examine whether financial contributions provided by non-EU governments give companies an unfair competitive advantage in the European market. If concerns are identified, the Commission can launch an in-depth investigation and potentially impose corrective measures.
In July 2024, KHNP was selected by the Czech government as its preferred bidder to construct two new units near the Dukovany NPP after Électricité de France (EDF) was eliminated from the bidding process. An engineering, procurement and construction contract was signed in June 2025, for two APR-1000 units at a projected cost of CZK407bn ($18.6bn) with construction expected to start in 2029.
The regulatory review was initiated after a complaint was filed by EDF alleging that KHNP’s price terms were unfeasible without illegal state support. KHNP consistently maintained it received no subsidies from the Korean government. Furthermore, it argued that the Dukovany tender began before the EU’s FSR took effect, meaning the regulation should not be retroactively applied to the project. The EC’s decision removes the biggest external regulatory hurdle clearing the path for KHNP to proceed smoothly with final contract negotiations, licensing procedures, and design work with Czech authorities.
South Korea’s Minister of Trade, Industry and Energy Kim Jeong-kwan posted on Facebook: “It is highly significant that the European Commission made this official decision after directly reviewing the relevant matter…. This decision confirms that Korea Hydro & Nuclear Power and Team Korea have pursued the project in full compliance with international norms and EU laws and regulations.” He added: “The Dukovany project is not merely a construction project, but a strategic cooperation initiative through which Korea and the Czech Republic will jointly foster technology, industry, and talent for decades to come.”
KHNP believes that this decision has significantly reduced uncertainties regarding the project. The Dukovany project is currently proceeding according to schedule, with post-contract steps such as submitting licensing documents and conducting site surveys underway. “Going forward, we plan to concentrate our capabilities to ensure the successful execution of the Dukovany nuclear power plant project through close cooperation with the Czech client,” KHNP noted.
Czech Industry and Trade Minister Karel Havlíček posted on X that the EC decision to close the preliminary review “is good news for this project and for the development of the nuclear industry and the future assurance of energy security in the Czech Republic and the European Union”.
