As development of Small Modular Reactor (SMR) technology, a long-standing goal of Korea's nuclear power industry, enters the commercialization stage, competition to seize the SMR market is heating up. Local governments are striving to attract SMRs to their regions, and the construction industry is racing to win SMR projects.
This is because the government signaled its intent to build SMRs in the next Basic Plan for Long-term Electricity Supply and Demand, judging that SMRs are advantageous for revitalizing regional economies and securing future technologies. An SMR is a small nuclear reactor that reduces size by manufacturing key components as an integrated unit and can be installed in a modular fashion.
On the 28th, according to the government and the energy industry, the government began formulating the 12th Basic Plan for Long-term Electricity Supply and Demand. The plan is expected to reflect as-is the construction proposals from the 11th plan for two large nuclear reactors (to be completed in 2037–2038) and one SMR (to be completed in 2035). Earlier, after the Ministry of Climate, Energy and Environment conducted public deliberation on new nuclear construction, a majority of public opinion favored proceeding as originally planned.
The plan is a 15-year statutory long-term blueprint established every two years to ensure stable power supply. The 12th plan will cover 2026 through 2040. A draft will be prepared in the first half, followed by a public hearing and interagency consultations, with finalization expected around the end of the year.
In particular, the nuclear industry is focusing on the progress of the government-backed innovative SMR (i-SMR) project. Among SMRs under development in Korea, the only one that has entered the commercialization phase is the i-SMR being developed by the Innovative SMR Technology Development Project Group. The group on the 27th applied to the Nuclear Safety and Security Commission for standard design approval. Once approval is granted, it effectively clears the first hurdle toward commercialization.
As construction of the i-SMR demonstration reactor (0.7 GW) becomes more tangible, interested local governments have launched bids to host it. Korea Hydro & Nuclear Power Co. (KHNP) decided to accept applications from local governments wishing to host the SMR demonstration reactor through the 30th of next month.
Busan's Gijang County formed the "Gijang County i-SMR Attraction Promotion TF" and began crafting a site selection strategy. In particular, it is considering an unconventional approach in which the local government itself secures "resident acceptance," the biggest hurdle to nuclear plant construction.
Gyeongsangbuk-do then formed a dedicated TF and is making concerted efforts to attract an SMR near the Wolseong Nuclear Power Plant in Gyeongju. Emphasizing synergy with existing nuclear infrastructure, it aims to create an "SMR specialized zone."
Large domestic builders that had mainly partnered with overseas SMR developers are now turning to the domestic market. Daewoo Engineering & Construction decided to work with KHNP to directly participate in i-SMR technology development and demonstration. GS Engineering & Construction began reorganizing by hiring SMR specialists to assess the feasibility of domestic projects.
Meanwhile, some argue that the currently planned single SMR unit should be expanded significantly. The main reason is the rapid growth of power-hungry advanced industries such as artificial intelligence (AI) data centers and semiconductor clusters. The Korean Nuclear Society suggested that, to achieve carbon neutrality and ease power shortages, at least 20 additional large nuclear reactors and 12 SMRs are needed.
An industry official said, "The key with SMRs is to build them near demand centers to reduce transmission losses," and added, "To lower generation costs and achieve economies of scale, the 12th basic plan should actively consider additional construction."