Chip fabs, AI data centers put Korea's nuclear policy back in focus
Wolseong nuclear power plant in Gyeongju, North Gyeongsang Province / Courtesy of Korea Hydro & Nuclear Power
Korea's energy policy is at a crossroads as the government's ambition to become a global powerhouse in semiconductors, artificial intelligence (AI) and advanced manufacturing collides with a less glamorous reality: finding enough electricity to power it all.
The Lee Jae Myung administration's "mega project" initiative, including a new semiconductor cluster for Samsung Electronics and SK hynix Inc. in the southwestern city of Gwangju, AI data centers and other energy-intensive facilities, is expected to trigger an unprecedented surge in electricity demand, forcing policymakers to rethink the country's long-term energy mix.
The challenge has reignited support for nuclear power just a few years after Seoul sought to phase it out following heightened safety concerns stemming from Japan's Fukushima nuclear disaster in 2011, while exposing the limitations of relying on intermittent renewable energy.
Nuclear energy has returned to the spotlight as a reliable, carbon-free source of baseload electricity capable of meeting surging demand from chip fabs and AI data centers, which require an uninterrupted, high-quality power supply 24 hours a day.
Government and industry estimates indicate that the southwestern semiconductor cluster and AI data centers alone will require approximately 24.7 gigawatts (GW) of additional generation capacity.
That is on top of the demand projections reflected in the 11th basic plan for long-term electricity supply and demand for the 2024-2038 period, which forecasts peak electricity demand of 129.3 GW by 2038.
The estimate excludes a large-scale semiconductor cluster in Yongin, south of Seoul, which is also expected to house fabs operated by Samsung Electronics and SK hynix. The Yongin cluster is projected to require around 15 GW of electricity, part of which has already been incorporated into existing supply plans.
The projected increase has strengthened calls for additional nuclear power plants to support Korea's industrial strategy.
The push to accelerate construction of new semiconductor fabs, however, faces a timing problem: new nuclear reactors cannot be built quickly enough to meet the expected near-term surge in electricity demand.
While the government aims to begin operating the first fabs in the southwestern region around 2030, questions remain over whether sufficient electricity can be secured for the initial phase of operations.
Building a new nuclear reactor takes at least seven to eight years, even under an accelerated schedule, while securing permits, selecting sites and winning local support can take several years.
Expanding transmission infrastructure to deliver large volumes of electricity to new industrial clusters also takes years and often faces opposition from residents along proposed power-line routes.
To address concerns over the gap between the proposed fab expansion and future electricity supply, presidential chief of staff Kang Hoon-sik said the government would explore ways to accelerate the construction of new nuclear power plants.
"Building a nuclear power plant normally takes nine to 10 years, and we will also examine ways to shorten that period," Kang told reporters following the announcement of the mega projects.
One proposal under discussion would build four additional reactors at the existing Hanbit nuclear power plant in Yeonggwang and the Saeul nuclear power plant in Ulsan, taking advantage of existing sites and infrastructure to shorten construction timelines.
Against this backdrop, state-run Korea Hydro & Nuclear Power (KHNP) last month selected Yeongdeok on the southeastern coast as a candidate site for two large-scale reactors with a combined capacity of 2.8 GW and Busan's Gijang County as a candidate site for a 700-megawatt small modular reactor (SMR).
Even so, the planned additions would still fall well short of the projected increase in electricity demand.
Recognizing the limitations, Vice Industry Minister Moon Shin-hak said last week that the government could initially rely on renewable energy, liquefied natural gas (LNG) plants and energy storage systems before bringing additional nuclear capacity online over the longer term.
Industry experts argue that the government will need to incorporate additional nuclear expansion plans into the 12th electricity basic plan to ensure power supply keeps pace with its industrial ambitions.
"The government should reassess whether its industrial strategy and electricity supply plans are aligned based on reliable data and promptly present a road map for expanding carbon-free power generation that matches future demand," the Korean Nuclear Society said.