Two new large nuclear power plants will be built in Yeongdeok County, North Gyeongsang, and the country's first small modular reactor (SMR) will be built in Gijang County, Busan. Yeongdeok County and Ulsan's Ulju County have fiercely competed to host the large plants, while Gijang County and Gyeongju in North Gyeongsang have vied to host the SMR. In the past, nuclear plants were the quintessential NIMBY facilities, but lately local governments have actively sought to attract them because they bring in large amounts of capital and people.
According to Korea Hydro & Nuclear Power Co. (KHNP) on the 17th, the New Nuclear Plant Site Selection Evaluation Committee (the evaluation committee) held a meeting that day to choose sites and decided on Yeongdeok County, North Gyeongsang, for two new large nuclear power plants and Gijang County, Busan, for one SMR.
In the site evaluation that day, the evaluation committee gave Yeongdeok County 91.01 points and Ulsan's Ulju County 82.63 points. Among SMR applicants, Busan's Gijang County received 87.11 points and Gyeongju in North Gyeongsang received 84.56 points. The evaluation committee said, "We determined priorities by reactor type and selected the top-ranked area as the candidate site."
The new plants will be built under the 11th Basic Plan for Long-term Electricity Supply and Demand (power plan), prepared in Nov. 2025. The 11th power plan forecasts mid- to long-term electricity demand over the 15 years from 2024 to 2038 and sets a supply roadmap for facilities such as nuclear and renewables to match that demand. The 11th plan includes building two 1.4-gigawatt (GW) large reactors and one 0.7 GW SMR. The large plants are slated for completion in 2037 and 2038. The SMR is slated for completion in 2035.
◇ Resident acceptance and site suitability tipped the balance
The new plant site selection was scored out of 100 points, with 25 points each allocated to site suitability, environmental performance, construction suitability, and resident acceptance. In this selection, site suitability and resident acceptance proved decisive.
Yeongdeok County earned strong marks in resident acceptance—particularly in resident polls (within/outside 5 km)—and in site suitability and environmental categories. It appears advantageous that the county proposed the site officially designated in 2012 for the Cheonji Units 1 and 2. Geological surveys and environmental impact assessments were previously conducted during the earlier project. In addition, Yeongdeok proposed a site more than 10 times larger than the area (261,000㎡) offered by Ulju County. It far exceeds the 1,041,000㎡ needed to build two large reactors.
Strong support among Yeongdeok residents for hosting a plant also positively influenced the selection. According to Yeongdeok County, a survey of about 1,400 residents in Jan. found 86% in favor of hosting a plant. By contrast, the approval rate in Ulju County was 65.9%.
Gijang County was selected as a candidate site after receiving higher evaluations than rival areas in categories such as resident polls (within/outside 5 km) and site suitability within resident acceptance. The 25-point resident acceptance category considers resident opinion, balanced regional development, and local government support, as well as whether the local council agrees. All Gijang County Council members were present and all supported hosting the SMR. By contrast, in Gyeongju, one city council member opposed hosting the SMR, and the vote was held without that member present.
A Gijang County official said, "We have argued that it is not approval relative to attendance," and added, "It seems positive that all Gijang County Council members were present and all voted in favor."
Gijang County already operates Kori Units 2, 3, and 4 and Shin-Kori Units 1 and 2. The new SMR site is also owned by KHNP within the Kori Nuclear Power Headquarters. The lack of need to purchase additional land or relocate residents appears to have worked to its advantage. The site is adjacent to the sea, which is also favorable for SMR cooling.
◇ Once a site is chosen, more than 100 billion won; once a plant runs, tax revenue linked to generation is added
Yeongdeok County and Gijang County have actively pursued what used to be considered NIMBY facilities because they can expect benefits such as securing finances and attracting population. Once a site is finalized for plant construction, massive funds flow to the local government under the Act on Support for Areas around Power Plants and the "regional resources facilities tax" in the Local Tax Act.
First, once hosting is confirmed, a one-time "special grant" of more than 100 billion won is paid to promote development and co-prosperity in areas near the plant. The special grant equals 2% of total construction costs, consisting of 1.5% of construction costs plus an additional charge of 0.5% for voluntary hosting.
Ulju County received 118.2 billion won in special grants in 2014 when the site for building Shin-Wolseong Units 3 and 4 was finalized. Based on this funding, Ulju built the Energy Convergence Industry Complex in Seosaeng-myeon and the Ulju Marine Leisure Sports Center. Uljin County in North Gyeongsang also received 230.4 billion won in special grants after the site for the under-construction Shin-Hanul Units 3 and 4 was confirmed. Considering higher construction costs due to inflation, Yeongdeok's special grant is likely to be larger. The SMR special grant alone is estimated at about 120 billion won.
Local governments can also receive grants based on electricity generation. Under the Act on Support for Areas around Power Plants, a local government that hosts a nuclear plant receives a "basic grant" of 0.25 won per kilowatt-hour (kWh) every year starting after groundbreaking. Under the same law, KHNP also pays 0.25 won per kWh every year to the local government from groundbreaking as "business operator support funds."
According to KHNP, Uljin County is expected to receive a total of 351.1 billion won in basic grants over the 60 years of operation of Shin-Hanul Units 3 and 4, starting from groundbreaking. That amount combines 45.8 billion won for the nine-year construction period and 305.3 billion won over 60 years of operation. The amount to be received as business operator support funds is calculated the same way as the basic grant, so it is also expected to be 351.1 billion won.
Gijang County, which will host the SMR, is also set to receive hefty grants. Assuming an SMR design life of 80 years and a capacity factor of 80%, hosting one 0.7 GW SMR would bring in about 1.2 billion won annually each in basic grants and business operator support funds, and about 102 billion won over 85 years including the five-year construction period.
Given that construction takes about nine years for large plants and five years for an SMR, the influx of many construction workers is expected to boost the local economy. After construction, the settled population is also expected to grow as KHNP employees who will operate the plant and technicians from partner companies move in.
According to KHNP, cumulative job creation during the construction of Shin-Hanul Units 3 and 4 is expected to reach about 7.2 million people. That includes 730,000 KHNP personnel, 470,000 design workers, 730,000 equipment manufacturing workers, 820,000 construction workers, and 40,000 in other services. An Ulju County official said, "Even with just two reactors, about 500 resident personnel affiliated with KHNP move in," adding, "Employees of partner companies also move in, which is likely to invigorate nearby commercial districts."