Yoon commits to big spending on nuclear power development

Economy

Published: 14 Dec. 2022, 15:45 Updated: 14 Dec. 2022, 19:17

Yoon commits to big spending on nuclear power development

Minister of Trade, Industry and Energy Lee Chang-yang tours the Shin-Hanul 1 nuclear power plant in Uljin, North Gyeongsang, on Wednesday. The nuclear power plant started commercial operation a week ago. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Korea is committing 400 billion won ($308 million) a year to the development of small nuclear reactors as it doubles its overall annual spending on nuclear energy to 2 trillion won, according to the president.

“The government will actively support the nuclear energy industry so it can become a major pillar leading our exports and so that Korea can once again be recognized globally as a major nuclear energy power country,” President Yoon Suk-yeol said Wednesday.

His comments were read by Minister of Trade, Industry and Energy Lee Chang-yang at a ceremony celebrating the commercial operation of Shin-Hanul 1, which began on Dec. 7. The president was unable to attend the ceremony, held at the plant in Uljin, North Gyeongsang, as the country is on alert due to extreme cold weather.

“The operation of Shin-Hanul 1 is not the end but a new beginning,” Yoon said.

In his speech, Yoon said the nuclear power sector in Korea could have been pushed beyond the point of recovery if the “reckless” nuclear energy policies of President Moon Jae-in had continued.

“The government since inauguration has abolished the nuclear energy phase out policy pushed excessively by the previous administration in order to establish a reasonable energy policy and normalize nuclear energy policies,” Yoon said in the statement. “We now plan to further accelerate the restoration of the nuclear energy ecosystem.”

In the efforts to reviving the nuclear energy industry in Korea, Yoon said the construction of the two additional nuclear power plants in Uljin – Shin-Hanul 3 and 4 – will start next month.

“Nuclear energy will be actively utilized in strengthening energy security and achieving carbon neutrality,” Yoon said.

The Shin-Hanul 1 took 12 years to build.

The nuclear power plant was initially scheduled to start commercial operation in 2017. Its opening was delayed as the Moon government applied stricter safety regulations following an earthquake in Gyeongju in 2016.

According to the government, the nuclear power plant is the country’s first in which key components are localized, including the APR1400 reactors, control systems and cooling pumps.

The commercial operation of Shin-Hanul 1 is expected to contribute to stabilizing energy supply during winter this year, with demand expected to be high.

The reactor is forecast to increase the reserve margin, which is the energy produced in excess of estimated demand, from 11.7 percent to 13.3 percent this winter.

The latest additional nuclear reactor is also expected to contribute to lowering Korea’s energy import reliance, as the electricity generated from the reactor is equivalent to the import of 1.4 million tons of liquefied natural gas a year.

It operations could help reduce Korea’s trade deficit by $2.5 billion a year.

Shin-Hanul 2 is near completion and expected to go online around September next year.

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