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 Ulju County in Ulsan had fiercely competed to host the large plants, while Gijang County and Gyeongju City in North Gyeongsang vied to host the SMR. In the past, nuclear plants were the quintessential facilities people shunned, but recently local governments have actively sought to host them because they bring in major capital and population.
On the 17th, according to Korea Hydro & Nuclear Power Co. (KHNP), the new plant site selection evaluation committee (the committee) held a meeting the same day to choose the site for new plants and decided to locate the two large nuclear power plants in Yeongdeok County, North Gyeongsang, and the one SMR in Gijang County, Busan.
In the site evaluations that day, the committee gave Yeongdeok County 91.01 points and Ulju County in Ulsan 82.63. Among the SMR applicants, Gijang County in Busan received 87.11 points and Gyeongju City in North Gyeongsang scored 84.56. The committee said, "We determined priorities by reactor type and selected the top-priority area as the candidate site."
The new plants will be built under the 11th Basic Plan for Long-term Electricity Supply and Demand, prepared in Nov. 2025. The 11th plan forecasts mid- to long-term electricity demand over the 15 years from 2024 to 2038 and lays out a supply roadmap for power facilities such as nuclear and renewable energy to match it. The plan includes 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 decided the outcome
The new plant site selection was scored out of 100 points, with 25 points each for site suitability, environmental aspects, construction suitability, and resident acceptance. This round came down to site suitability and resident acceptance.
Yeongdeok County received strong evaluations in resident polling (within/outside 5 km) under resident acceptance and in site suitability and environmental categories. It appears advantageous that the county proposed land officially designated in 2012 for the Cheonji Units 1 and 2 site. That is because geological surveys and environmental impact assessments were conducted during the previous push. In addition, Yeongdeok proposed an area more than 10 times larger than the 261,000㎡ offered by Ulju County. It far exceeds the 1,041,000㎡ required for two large reactors.
Active support among Yeongdeok residents for hosting the plants also positively influenced the selection. According to Yeongdeok County, a survey of about 1,400 county residents in Jan. found 86% in favor of hosting the plants. By contrast, Ulju County's support rate was 65.9%.
Gijang County was selected as a candidate site after earning stronger evaluations than rival areas in categories such as resident polling (within/outside 5 km) under resident acceptance and site suitability. The 25-point resident acceptance section considers resident opinion, balanced regional development, municipal support, and whether the local council consents. In Gijang, all members of the county council were present and all supported hosting the SMR. In contrast, in Gyeongju City, one council member opposed hosting the SMR, and the vote took place without that member present.
A Gijang County official said, "We have maintained that it was not approval relative to attendance," and added, "It seems positive that all Gijang County Council members were present and all supported it."
Gori Units 2, 3, and 4 and Shin-Gori Units 1 and 2 are already in operation in Gijang County. The new SMR site is also owned by KHNP within the Gori Nuclear Power Headquarters. The lack of a need for additional land purchases or resident relocation appears to have worked to its advantage. The site borders the sea, which also favors SMR cooling.
◇ If the site is selected, more than 100 billion won; when the plant runs, added tax revenue linked to output
Yeongdeok County and Gijang County have actively pursued hosting nuclear plants, once considered undesirable facilities, because they can expect benefits such as securing finances and attracting population. From the moment a site is finalized for plant construction, massive funds flow to the municipality under the Act on Support for Areas Surrounding Power Plants and the "local resource facility tax" of the Local Tax Act.
First, once hosting is finalized, a one-time "special grant" exceeding 100 billion won is paid for development and mutual growth in areas surrounding the plant. The special grant equals 2% of total construction costs, consisting of 1.5% of construction costs plus an additional 0.5% for voluntary hosting.
Ulju County received 118.2 billion won in 2014 as a special grant when the site for constructing Shin-Wolsong Units 3 and 4 was finalized. Based on those funds, 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 currently under-construction Shin-Hanul Units 3 and 4 was confirmed. Given higher construction costs due to inflation, Yeongdeok County's special grant is likely to be larger. The SMR's special grant alone is estimated at about 120 billion won.
Municipalities can also receive support in line with power output. Under the Act on Support for Areas Surrounding Power Plants, a municipality hosting a nuclear plant receives a "basic grant" of 0.25 won per kilowatt-hour (kWh) every year starting from groundbreaking. Under the same law, KHNP also pays 0.25 won per kWh each year from groundbreaking as "project operator support funds."
According to KHNP, Uljin County is expected to receive a total of 351.1 billion won in basic grants over 60 years of operating Shin-Hanul Units 3 and 4, starting from groundbreaking. That includes 45.8 billion won during the nine years of construction and 305.3 billion won over 60 years of operation. Because the calculation method is the same, the amount to be received as project operator support funds is also expected to be 351.1 billion won.
Gijang County, which will host the SMR, is also set to receive ample support. Assuming an 80-year design life and an 80% capacity factor, hosting one 0.7 GW SMR would bring in about 1.2 billion won each year for both the basic grant and the project 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 a large plant and five years for an SMR, the influx of many construction workers can be expected to boost the local economy. After construction, the resident population is also expected to grow as KHNP employees and partner-company technicians move in to operate the plants.
According to KHNP, cumulative job creation during construction of Shin-Hanul Units 3 and 4 is expected to reach about 7.2 million people. Of those, KHNP personnel account for 730,000, along with 470,000 in design, 730,000 in equipment manufacturing, 820,000 in construction, and 40,000 in other services. An Ulju County official said, "Even with just two reactors, about 500 resident personnel from KHNP would move in, and with partner company employees as well, nearby commercial districts are likely to be revitalized."