Energy and housing at the top of list for new president

Economy

Published: 09 May. 2022, 23:12

Energy and housing at the top of list for new president

Yoon Suk-yeol visits the Shin-Hanul reactors construction site in Uljin, North Gyeongsang, in December 2021. [YONHAP]

One of the first jobs for the Yoon Suk-yeol administration is reversing his predecessor's policy on the phasing out of nuclear energy.

The reversal is timely as the country, and the world, battles inflation and dramatically higher energy prices. It could also help reduce fine-dust pollution, as coal-fired plants can be used less once nuclear energy output is stabilized and possibly increased.

During his campaign, Yoon said that he will resume construction of the Shin-Hanul No. 3 and No. 4 reactors. The previous administration halted work on these plants and was allowing existing plants to be decommissioned at the end of their useful lives.

Other measures will be taken by the new government to increase nuclear as a percentage of total output.

Last month, Yoon’s transition team established a roadmap that includes the extension of the useful lives of nuclear reactors.

The new administration will allow nuclear power plants to reapply for their operating licenses earlier. Currently, they have to wait until five years prior to the expiration date to request an extension. The Yoon administration wants to take that to 10 years.

If the rule is changed, the government will be able to review 18 plants during its five-year term, up from the 10 that would have been inspected under current rules.

Despite the Moon Jae-in government retiring two nuclear reactors, nuclear remains the No. 2 power source in the country. Coal is No. 1.

The transition team emphasized the need for increasing nuclear power as rising energy prices could add to inflationary pressures.

“Nuclear energy plants are already running at full capacity,” said Lee Sang-yeol, a researcher at Korea Institute of Energy Research.

If the plan is implemented and if reactor lives are extended, the contribution of nuclear to the energy mix could be increased. In 2021, nuclear was 27.4 percent of total energy generation in the country. It could rise above 33 percent.

The new government insists it will meet the Moon government's pledges in terms of carbon emissions.

“As we respect the carbon neutrality target promised internationally, nuclear power utilization will be increased in realizing this goal,” said Kim Gi-heung, deputy chief spokesperson for the transition team. “The nuclear power ratio will be raised by resuming the construction of Shin-Hanul reactors 3 and 4 and extending the life of nuclear power plants.”

The transition team stressed that by including nuclear energy in the Korean green taxonomy — a list of economic activities considered environmentally sustainable — the country will be more effective in meeting the targeted greenhouse gas emissions reduction and eventually reaching carbon neutrality.

The Moon government included LNG in its green taxonomy, but it left out nuclear power.

Legislation to accelerate the reconstruction of apartments in aging New Towns will be pushed by the administration.

The first New Towns, including Bundang and Ilsan, were built in the early 1990s. Roughly 44 percent of the 120,000 apartments in these towns are 30 years old or older. Bundang has the largest number of aging apartments, at 42,000 units, which is roughly 34 percent of the total.

With the reconstruction, old apartments will be made safer and regulations that limit the floor-area ratio will be relaxed, allowing for the building of more units.

The floor-area ratio of the first new towns are 200 percent or less. Yoon plans to take the limit to 300 percent. This will allow for an additional 100,000 units.

Yoon's transition team has stressed that real estate will be a major challenge due to the previous administration’s anti-market polices.

“The government and the People Power Party have agreed to focus all of its policies on the most important solution, which is housing supply,” said Shin Yong-hyun the transition team spokeswoman.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]