We discussed the current state of Korean investments and businesses in the Czech Republic, including the sectors they are involved in and the characteristics that contribute to their success, with the Korean Ambassador in Prague, H.E. Mr. Youngki HONG.
Korea and the Czech Republic have similar potential in innovative industry and both strongly focus on export. What are the possible ways of cooperation for Czech managers and companies?
Korea and the Czech Republic have a high manufacturing share and a dependence on foreign trade in common. As a result, both countries must make their existing industries more intelligent, eco-friendly, highly value-added, and expand their export markets in order to achieve continuous growth. In particular, cooperation in nuclear power, hydrogen, drones, AI, electric vehicles, and pharmaceuticals, which both countries are interested in, is very promising at the corporate and institutional level in the future. Our Embassy and KOTRA Prague organize various business meetings and forums throughout the year in these areas to promote bilateral economic cooperation. Czech companies can participate in these events or receive business support related to Korea through KOTRA Prague (www.kotrapraha.cz). Expanding cooperation with Korea will be a great opportunity for Czech companies to diversify their markets and strengthen their competitiveness.
Carbon neutrality and energy safety are the things of common interest, among others. Can mutually- beneficial projects be applied in these areas?
Take Hyundai Motor’s Czech plant, the largest foreign investor in the Czech Republic. Hyundai became the first Czech automaker to start producing electric vehicles in 2020 and achieved RE100 in 2022 to source all the power used in the plant from renewable energy. Hyundai Motor is also trying to increase its proportion of electric vehicle production to 70% among all vehicles produced at its Czech plant by 2030. You may say that Korean investors are significantly contributing to the Czech Republic’s transition from internal combustion engines to electric vehicles to become carbon neutral. Korean companies have global competitiveness in nuclear power, hydrogen fuel cells, and EV batteries as well, and discussions with the Czech industries are very active. All of these areas can contribute to the Czech Republic’s carbon neutrality and energy security.
The Czech Republic has announced a tender for constructing new nuclear blocks and the Korean side has submitted its offer. What is your experience with the construction and operation of nuclear blocks and what kind of opportunities can Czech subcontractors expect?
Countries around the world are interested in nuclear power as a realistic way to achieve carbon neutrality. However, many nuclear projects face major challenges as they fail to meet the schedule and budget. By comparison, the biggest advantage of Korea is that it is ‘on time, within budget’. Korea has been building nuclear power plants uninterruptedly for the past 50 years, both at home and abroad, so it has strong supply chains and efficient management know-how. The Czech Republic has many companies with a long tradition and excellent technology in the nuclear field, including the Doosan Skoda Power in Plzen, which produces high-quality turbines for nuclear power plants. The Korean side held the ‘Doosan Partnership Day’ on May 13 and the ‘Korea-Czech Nuclear Engineering and Construction Forum’ on May 27 with its Czech partners. Through these events, Korea offers practical and concrete ways to cooperate with Czech companies across the entire nuclear power plant ecosystem, from key equipment such as turbines to construction, machinery, and electricity.
The Czech Republic is a safe place for foreign investment. That is proved also by the significant Korean investment in it. What do Korean investors appreciate about the Czech economic environment?
The Czech Republic has a vibrant democracy, market economy, and rule of law, and its highly educated workforce which is a great advantage for foreign investors. Therefore, Korean companies that have invested in the Czech Republic are interested in expanding their business through further investment. The Czech government is implementing different measures to tackle the job shortage, and I believe that exempting Koreans from work permit requirements will help attract more investment.
After the COVID-19 pandemic the health and medical field has become an even bigger strategic interest. Is there any ongoing cooperation in this regard, if so, in which ways?
The pandemic has made the Czech Republic more aware of the good quality of Korean medical devices and pharmaceuticals, including masks, diagnostic kits, and antibiotics. Korean dental companies such as Osstem and Vatech are also active in the Czech medical device market, with their European headquarters in Prague. In June last year, the Korean Embassy organized the Korea-Czech Medical Cooperation Forum with KOTRA. At that time, more than 30 medically-related companies from both countries participated in the event and actively discussed drug and medical device exports, certification, and technical cooperation. On June 20 this year, KOTRA will also host a medical B2B meeting in Prague. Through such exchanges and cooperation, I hope that Korea will contribute to diversifying the Czech medical supply chain and raising he level of medical devices and services.
Thank you for the interview.
