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South Korea Nuclear Energy

South Korea’s new power generation mix scheme focused on carbon-free energy including nuclear
South Korea (Korea), a manufacturing powerhouse and one of the largest electricity consumers on both per capita basis and relative to its geographic size, is seeking to transform its energy generation mix by adopting greater use of nuclear power. Specifically, according to Korea’s 11th Basic Plan on Electricity Supply and Demand (BPLE), the country’s 15-year plan on its electricity needs, Korea is looking to increase the source of carbon free energy in its overall energy mix from the current 40% to 70.2% by 2038, with a plan to generate much of the carbon free energy from nuclear power. The working draft of the BPLE also focuses on composing a power generation mix based on securing a steady energy supply, reducing carbon emissions and achieving the Nationally Defined Contribution (NDC) goals under the Paris Agreement and pursuing Carbon Free 100% (CF100 includes utilizing nuclear energy).

New nuclear power reactors and Small Modular Reaction (SMR)
Currently, Korea has 27 nuclear reactors with a generating capacity of 31.65 GWh, with its reliance on atomic energy accounting for approximately 29.6% of its electricity generation. The working draft of the 11th BPLE proposes to construct up to three nuclear reactors, one SMR and expand renewable energy sources by 2038. Korea will secure an additional 4.2GW from three APR-1400 PWR-type nuclear reactors and 0.2GW from an SMR. Such a shift in power mix – notably marked by an increase in electricity generation from nuclear power – will also help the insolvency of the Korea Electric Power Corporation (KEPCO), Korea’s state-owned power company. The electricity generation cost of nuclear power is also much lower than that of other sources such as solar and wind.

Opportunities for U.S. Exporters
The U.S. is considered one of the global leaders in energy and related nuclear fuel and engineering services and is a leading exporter of various energy solutions.  Companies with price-competitive technologies and services have the potential to penetrate the Korean market in the following areas:

  • Civil nuclear international cooperation
  • Engineering services for Korean companies establishing power plants in the United States
  • Low Enriched Uranium (LEU)
  • US-Korea cooperation on SMRs
  • High-Assay Low-Enriched Uranium (HALEU)
  • Project financing
  • Nuclear spent-fuel storage (metal/concrete dry cask) technology

U.S. suppliers in this sector should consider connecting with your local U.S. Commercial Service office in the United States to schedule an appointment for a consultation.

For more information contact the U.S. Commercial Service in South Korea: Nathan Huh, Senior Commercial Specialist, U.S. Commercial Service Korea, Nathan.Huh@trade.gov.

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