The government is focusing its policy efforts on “normalizing the nuclear power industry ecosystem.” It has come up with support measures encompassing advancing research and development (R&D), facilitating job opportunities, extending financial aid, and offering tax incentives.
On Feb. 22, the government held the 14th People’s Livelihood Forum with People, themed “Revitalizing the Nuclear Power Industry, Vibrant Changwon and South Gyeongsang Province,” at the South Gyeongsang Provincial Office in Changwon City.
During the forum presided over by the President, Minister of Trade, Industry and Energy Ahn Duk-geun announced the agenda of “Injecting Warmth into People’s Livelihoods through the Nuclear Power Industry,” stating, “We will not only restore the ecosystem but also elevate the quality of the nuclear power industry, aiming to become undoubtedly the leading nuclear power nation.”
Upon its inauguration, the Yoon Suk-yeol administration announced the abandonment of the government’s anti-nuclear policy and pledged to actively utilize nuclear power as a core energy source. Consequently, it immediately resumed the construction of Units 3 and 4 of the Shin Hanul nuclear power plant, which had been halted during the previous administration. Through swift consultations among relevant ministries, the approval process was shortened by a whopping 18 months, leading to the approval of the comprehensive development plan in June of last year.
With the early conclusion of contracts for the main equipment of Shin Hanul Units 3 and 4 and the ordering of auxiliary equipment, job supply expanded from 2.4 trillion won (US$1.81 billion) in 2022 to 3 trillion won last year.
In addition, efforts have begun towards the development of indigenous small modular reactor (SMR) technology, in response to the growing anticipation for SMR markets as game-changers in the future energy market. Furthermore, a private joint venture called “SMR Alliance” was launched in July last year.
Efforts to industrialize nuclear power exports have also borne fruit, securing contracts worth over 4 trillion won within this administration alone. This includes the 3 trillion won El Dabaa project in Egypt and the construction project for the largest single facility, a 260 billion won tritium removal facility in Romania.
The government is establishing a virtuous circle structure aimed at fully restoring the nuclear power ecosystem, where job opportunities and financial support lead to investment and research and development (R&D), ultimately enhancing long-term competitiveness.
The government expects that the scale of job supply to the nuclear power industry will increase to 3.3 trillion won this year, up from 2.4 trillion won in 2022 and 3 trillion won in 2023.
It is anticipated that job opportunities generated by the construction of Units 3 and 4 of the Shin Hanul nuclear power plant will reach an accumulated total of 1 trillion won by the first half of this year.
A special advance payment system has also been implemented to assist companies facing financial difficulties due to long-standing job shortages in securing operating funds. Under this system, companies that entered into contracts to supply auxiliary equipment for the Shin Hanul Units 3 and 4 in December last year can receive an advance payment of up to 30 percent of the contract amount.
Special financial support targeted at the nuclear power industry will be strengthened, from 500 billion won last year to the 1 trillion won range this year.
The total amount has increased to around 1 trillion won, including the government’s 100 billion won Nuclear Power Ecosystem Financial Support Program, with loans alone rising to 595 billion won and additional guarantees, marking an increase from last year’s figures.
While the overall budget for nuclear R&D has been on the rise, it has been expanding more towards decommissioning during the anti-nuclear period, focusing on post-cycle activities such as dismantling and waste management. Consequently, the government plans to innovate domestic nuclear R&D, focusing on promising next-generation technologies like SMRs and fourth-generation reactors. To this end, the Yoon administration plans to invest 4 trillion won during its tenure.