Czech Ambassador to Korea Ivan Jancarek delivers opening remarks during the Czech-Korea Investment and Business Conference at the Korea Chamber of Commerce and Industry in Seoul, Monday. Korea Times photo by Shim Hyun-chul
Korea and the Czech Republic on Monday further cemented their commercial partnership as industry ministers from both countries, experts on the Czech business environment and representatives of Korean companies operating in the European nation gathered to encourage Korean investment in Czechia.
The Czech-Korea Investment and Business Conference, held at the Korea Chamber of Commerce and Industry in Seoul, highlighted strengthening trade ties between the two nations.
Next month, the Korea Hydro & Nuclear Power (KHNP) and CEZ Group EDU II are set to finalize a contract to build two nuclear reactors at the Dukovany Nuclear Power Plant in southern Czechia, marking a significant milestone in bilateral trade since the establishment of diplomatic relations in 1990.
Czech Industry and Trade Minister Lukas Vlcek delivered opening remarks during the event jointly hosted by the two countries' industry ministries, the Czech Republic Embassy in Seoul and CzechInvest, a Czech investment and business development agency. He said bilateral trade has exceeded $5 billion annually during the past four years, and the event will match Korean companies with “key stakeholders on the Czech side.”
“More than 70 Korean companies operate in the Czech market, employing over 16,000 people. As a result, Korea belongs among the most important foreign investors in the Czech Republic, with the level of foreign direct investment reaching more than $5 billion,” he said.
He added Hyundai Motor, Hyundai Mobis, Nexen Tire Europe and Doosan Skoda Power significantly contribute to job creation, industrial development and export growth in his country.
Referring to KHNP's selection as the preferred contractor for the Dukovany plant project, he stated that both countries are “starting a whole new chapter in Czech-Korean relations, as this large-scale project will modernize and upgrade Czech energy infrastructure, an important foundation for expanding the Czech-Korean industrial partnership, which we aim to further strengthen and elevate to an even higher level.”
Vlcek's counterpart, Korea's Industry Minister Ahn Duk-geun, said the two countries signed 56 memorandums of understanding (MOUs) last year when President Yoon Suk Yeol visited Prague. He noted that these MOUs extended beyond economic cooperation in industry and energy, broadening their scope to include joint research, people-to-people exchanges, and collaboration in cutting-edge science, technology, transportation and infrastructure.
“We have engaged in seven rounds of working group meetings to discuss advanced manufacturing, nuclear energy trade and investment. This morning, Minister Vlcek and I discussed a wide range of issues, including supply chain, research and development in nuclear and hydrogen, battery and future mobility,” Ahn said, referring to an MOU signed prior to the event to confirm new areas for bilateral cooperation and renewed partnership for semiconductors.
On Tuesday, Vlcek also joined a high-level bilateral dialogue in Seoul on carbon-free energy technologies jointly hosted by CzechInvest and the Korea Institute of Energy Technology Evaluation and Planning.
“I am more than convinced that our bilateral trade volume will surpass $10 billion within the decade to come, which is more than a twofold increase compared to the current level,” Ahn added.
The Czech government said it will cater to Korean talents willing to invest in its country. Czech Ambassador to Seoul Ivan Jancarek said the Czech Ministry of Foreign Affairs had a “sincere interest to facilitate the operation of highly skilled Korean managers and make it easier for them to obtain work visas.” He added that starting in April, there will be direct flights between Seoul and Prague every day.
Jan Rafaj, president of the Czech Confederation of Industry, highlighted the country's strong industrial bases in cars, artificial intelligence and cybersecurity. He added the two countries' “shared commitment to innovation, sustainability and economic growth makes us natural partners in fostering mutual prosperity.”
Korea Hydro & Nuclear Power President and CEO Whang Joo-ho, center, poses with Sohn Seung-woo, second from left, CEO of Doosan Enerbility's Power Services Business Group, and Daniel Prochazka, second from right, COO of Doosan Skoda Power, after signing a memorandum of understanding on localizing nuclear steam turbines and auxiliary systems for the Dukovany Nuclear Power Plant project in the Czech Republic at the Korea Chamber of Commerce and Industry in Seoul, Monday. Trade, Industry and Energy Minister Ahn Duk-geun, left, and Czech Industry and Trade Minister Lukas Vlcek also joined the ceremony. Korea Times photo by Shim Hyun-chul
Business environments in Czechia
Legal, financial experts and business representatives from the Czech Republic during the event highlighted the country's business-friendly environment, which is supported by legal safety nets and government regulations. CzechInvest Director General and CEO Jan Michal underscored the country's deep-rooted scientific contributions to humanity and its strengths in drawing foreign investments, such as its central location in Europe, skilled domestic workforce and social stability.
Michal cited the Global Innovation Index from 2024, which showed that Czechia was ranked the second-highest innovative country in central eastern Europe. He also cited the United Nations Economic Commission for Europe in 2023, where Czechia was named the most industrialized economy in the European Union, as 27.7 percent of the country's gross domestic product that year came from the sector.
Korean companies already operating there attested to their significant presence in the Czech economy during the conference. Hyundai Motor Group, which has been operating Hyundai Motor Manufacturing Czech (HMMC) in the Czech village of Nosovice since 2008, said it accounted for 7 percent of Czechia's GDP, 24 percent of Czech exports and was the sixth largest taxpayer in 2023 with over $148 million.
HMMC last year produced over 330,000 cars that were exported to 73 countries, mostly in Europe and the Middle East. The group invested over 33.4 billion Czech koruna ($1.4 billion) in HMMC and has created over 12,000 jobs in the country's eastern region.
Nexen Tire, in 2019, completed its Europe plant in the Czech town of Zatec, producing over 11 million tires a year. Since the plant began operating its second production line last year, the company's sales in Europe nearly doubled to over 1.1 trillion won ($762 million). The plant, as of last September, supplies 28 global car makers with tires used for 118 models.
Cho Jay-ho, vice president of Nexen Tire, highlighted the Czech Republic's location at the center of Europe, its robust manufacturing-centered infrastructure, average wages half of those in western Europe and various incentives for foreign investors as to why the country is ideal for Korean firms targeting the European market.