South Korea scraps anti-nuclear policy with approval of two nuclear plants

South Korea has approved the construction of two nuclear power plants, officially ending its anti-nuclear policy pursued by the previous Moon Jae-in administration.

The Nuclear Safety and Security Commission on Thursday approved the construction of Shin Hanul nuclear reactors No. 3 and No. 4 and related facilities in Uljin, 330 km southeast of Seoul, which was halted under the Moon administration.

The approval came eight years and three months after Korea Hydro & Nuclear Power Co. (KHNP) applied for construction approval in 2016.

While approving the construction plan at a plenary session, the commission concluded that the technical capability, suitability and safety of the two nuclear reactors met legal standards and regulations.

The project, estimated to cost 11.7 trillion won ($8.8 billion), involves building two 1,400 megawatt (MW) advanced pressurized water nuclear reactors (APR1400) in Uljin by 2033.

The construction of Shin Hanul Units 3 and 4 was originally scheduled for completion by 2023.

The project had been put on hold, however, due to the previous government’s nuclear phase-out policy.

The incumbent President Yoon Suk Yeol has revived the construction plan, making Shin Hanul Units 3 and 4 a symbol of the revival of Korea’s pursuit of nuclear energy, analysts said.

The Presidential Office said concerns about earthquakes around the new nuclear power plant sites are minimal, given that no active seismic faults have been found near the sites and no active faults capable of surface faulting have been detected within 8 kilometers of the area.

SHARES OF RELATED FIRMS SOAR

Doosan Enerbility Co., a leading Korean power plant engineering company and the project's main contractor, will build reactors, generators and other related equipment worth 2.9 trillion won.

Auxiliary equipment contracts worth 2 trillion won, including pumps, pipes and cables, will be awarded gradually over the next decade.

The government aims to complete Shin Hanul Unit 3 by 2032 and Unit 4 by 2033.

Shares of related companies soared on news of the government's approval of the project on Thursday.

Doosan Enerbility stock closed 8.2% higher at 17,710 won. Bosung Powertec Co., which supplies steel frames for the project, rose by the daily limit of 30% to close at 3,580 won. Woori Technology Inc., the project’s exclusive supplier of nuclear control systems, closed up 13.6% at 2,335 won.

ADDITIONAL NUCLEAR PLANTS, SMRs

The government plans to build additional nuclear power plants.

According to the country’s latest energy blueprint, the 11th Basic Plan for Long-Term Electricity Supply and Demand, up to three new nuclear plants will be constructed by 2038 and Korea’s first small modular reactors (SMRs) will be introduced in 2035.

According to the plan, Korea will need to generate 10.6 gigawatts (GW) of energy by 2038, of which 4.4 GW is expected to come from nuclear power.

Alongside nuclear power, the government plans to increase the share of carbon-free electricity, including solar and wind power, to over 70% of total electricity generation by 2038.

According to the basic plan, nuclear and renewable energy — the main source of carbon-free power — will account for 31.8% and 21.6%, respectively, by 2030.

Their proportion is expected to rise further to 35.6% and 32.9%, respectively, by 2038.

The ratio of hydrogen-ammonia power generation will rise from 2.4% in 2030 to 5.5% by 2038, according to the plan.

President Yoon, who took office in May 2022, pledged to rescind his predecessor’s policy of a gradual nuclear phase-out and increase dependence on nuclear energy.

Yoon said his government will also promote the development of small modular reactors, citing Korea’s increased reliance on fossil fuels.

The president also said his government seeks to export 10 nuclear power plants by 2030.

Write to Kyoung-Ju Kang and Byung-Uk Do at qurasoha@hankyung.com
In-Soo Nam edited this article.