The impeachment motion against President Yoon Suk-yeol passed the National Assembly on the 14th, raising red flags for the government's key project of nuclear power plant exports. Recently, the nuclear power industry has been booming globally with the advancement of artificial intelligence (AI), raising concerns that South Korea, which possesses the world's top nuclear technology, may lose out on opportunities due to political strife. The nuclear power sector had been recovering after facing difficulties under Moon Jae-in's 'nuclear phase-out' policy.
According to the nuclear power industry on the 17th, Korea Hydro and Nuclear Power Corporation is focusing on finalizing the contracts for two new nuclear power plants in Dukovany, Czech Republic, that it secured this year. 'Team Korea,' consisting of Korea Hydro and Nuclear Power Corporation, Doosan Enerbility, and Daewoo Engineering & Construction, was selected as the preferred negotiator for the Dukovany project issued by the Czech government in July. This project is valued at a total of 24 trillion won, with final contracts expected to be signed in March next year.
The contract win for the Dukovany nuclear power plants marked South Korea's first nuclear export in 15 years since securing the Barakah nuclear power project in the United Arab Emirates (UAE) in 2009. Team Korea secured preferred negotiation rights for additional future projects, including two new nuclear power plants in the Temelin region of the Czech Republic.
The industry believes that despite President Yoon's impeachment, the Dukovany nuclear power project, which has already been selected as a preferred negotiator and is nearing final contracts, is unlikely to face delays. However, considering the precedent where national leaders took the lead as 'salespeople' in nuclear export contracts, forecasts suggest that the momentum for future projects, including the two new Temelin plants, will significantly diminish.
Since his inauguration in 2022, President Yoon has identified the development of the nuclear power industry as a key issue and has actively supported it. Domestically, the construction of new nuclear plants had stalled for over eight years since the Saeul Units 3 and 4 in 2016, but with the Yoon Suk-yeol administration, new construction permits were obtained for the Shin Hanul Units 3 and 4 in September. President Yoon also met with Czech President Petr Pavel to bolster support for the nuclear plant contract.
Recently, the demand for nuclear power plants has surged globally. Since the outbreak of the Russia-Ukraine war, energy supply instability has prolonged, prompting many countries to consider new nuclear projects. Additionally, the rapid growth of the electric vehicle and artificial intelligence (AI) markets has significantly increased power demand, contributing to the expansion of the nuclear power market.
According to the nuclear power industry, the International Atomic Energy Agency (IAEA) projected in a report released this year that the global nuclear power generation capacity will increase from 371 gigawatts (GW) at the end of last year to 950 GW by 2050, which is 2.5 times the current capacity. Considering that there were only about 410 operational nuclear plants worldwide as of last year, more than 500 additional plants need to be constructed over the next 25 years.
The World Nuclear Association (WNA) also indicated that the current global nuclear power market size of approximately 1,000 trillion won is expected to grow by more than 60% over the next decade, reaching 1,653 trillion won by 2035.
Countries are accelerating efforts to seize the rapidly growing global nuclear power market. The United States announced a 'nuclear expansion roadmap' last month, aiming to add new nuclear plants and revive those that have been shut down, with plans to triple its nuclear generation capacity to 300 GW by 2050. Former President Donald Trump, who won last month's election, has also expressed support for nuclear expansion, suggesting that this roadmap is likely to be adopted by the next administration.
An industry representative noted, 'Nuclear power plant contracts require backing from national-level support, along with cooperation between the public and private sectors and swift execution,' adding that 'if the acting prime minister's authority continues for an extended period or if the next government takes a passive stance, securing additional nuclear power contracts will be challenging.'
Following the passage of President Yoon's impeachment, the Democratic Party, which is likely to take the lead in the political arena, has yet to clarify its position on the nuclear power industry. Although the party reduced the budget for nuclear-related projects last year, it agreed to pass the nuclear-related budget of 213.9 billion won this year without cuts. However, they maintain an uncertain stance on supporting nuclear projects, arguing that the 11th Basic Plan for Power Supply and Demand, which includes new nuclear construction, should be re-examined from scratch.