By Kim Tae-gyu
Staff reporter

Korea, a nation that does not produce a drop of oil, has emerged as an energy powerhouse in such emerging areas as nuclear power and renewable energy.

The Ministry of Knowledge Economy (MKE) said Monday that the country chalked up a total of $2.1 billion in exports in solar and wind power generation during the first six months of 2010, up from $1 billion the previous year.

The first-half performance already surpassed the $2 billion for the whole of 2009 thanks in large part to flourishing solar power exports amounting to $1.8 billion, up from $880 million a year ago.

“In the past, energy powerhouses referred to those with rich reserves of raw materials including oil or coal. But now the terminology alludes to those with technology in next-generation energy sources,” MKE official Yoo Jae-ho said.

“Under the new definition, I think Korea fits into the category of an energy powerhouse in consideration of its technological edge in renewable or nuclear power, which are acknowledged across the world.”

Asia’s fourth-largest economy has fared well in exporting its platforms and know-how for nuclear power generation as amply demonstrated by the megadeal in the United Arab Emirates (UAE).

The state-run Korea Electric Power Corp. (KEPCO) and builders won $20 billion worth of contracts from the UAE, under which two nuclear reactors will be built there during the next 10 years, the largest energy deal in the Middle East.

The agreement is expected to generate additional cash of about $20 billion for the Korean players if they take charge of operations at the newly-built power plants. KEPCO also looks to sign a nuclear power contract with Turkey, the value of which is estimated at $10 billion.

“Korea did not turn into an energy powerhouse overnight. The country has put forth great effort in researching futuristic energy sources because it has a dearth of raw materials. The lack of natural resources is at least partially responsible for its rise as a top exporter of nuclear and renewable power facilities,” Yoo said.

“Furthermore, the country’s unparalleled technological prowess in shipbuilding and memory chips has also been of great help. Shipbuilding has something to do with wind power businesses while semiconductors are related to solar power industries.”

Korea is the world’s foremost maker of memory chips as home of the two global leaders — Samsung Electronics and Hynix Semiconductor. The country also accommodates some of the world’s top-tier shipyards including Hyundai Heavy Industries and STX Group.