Korea's nuclear biz exports drive gains steam

Yoon administration's policy support in high gear

By Lee Kyung-min

Korea is accelerating efforts to export its nuclear energy systems, a new policy initiative gaining strong momentum with the full backing of the Yoon Suk-yeol administration seeking to win 10 advance orders of nuclear projects overseas, according to energy experts. Bilateral and multilateral cooperation with key countries in the European Union, the Middle East as well as the U.S. will be fortified to better utilize the once-demonized energy source, noted for its cheap and stable supply in extreme weather conditions.

Experts say Yoon's new energy policy is no longer about politically undercutting the nuclear phase-out drive that occurred under the Moon Jae-in administration, but creating a new growth driver for the country as it has limited natural resources for a sustainable, green future.

The assessment is evidenced by a number of global top nuclear technology developers and energy firms that are fortifying cooperation with Korea's state-run and private energy firms including Westinghouse Electric Company, a U.S. nuclear power firm.

How fast and well Korea's energy companies succeed in creating earnings overseas from nuclear businesses will determine the success of Yoon's administration, which is coming under growing pressure to raise electricity bill rates due to soaring global energy prices.

Westinghouse Electric

According to the nuclear industry, a group of senior executives including Patrick Fragman, the CEO of Westinghouse Electric Company, visited Seoul on June 8, for joint cooperation in the nuclear energy businesses.

The Americans came for a three-day visit to meet with CEOs of Korea Electric Power Corp. (KEPCO) and its two subsidiaries Korea Hydro & Nuclear Power (KHNP) and KEPCO KPS as well as senior officials from the Ministry of Trade, Industry and Energy.

They met with KEPCO CEO Cheong Seung-il and KHNP CEO Chung Jae-hoon, and signed a memorandum of understanding (MOU) to bolster overall cooperation in the nuclear business including efforts to win joint business projects overseas.

The closed-door meetings are a follow-up to the recent Korea-U.S. summit between Yoon and U.S. President Joe Biden, whose commitment to lead the global nuclear power industry will take shape in the form of a strategic partnership to cement a strong global market presence.

The bilateral agreement is defined by the Additional Protocol, a condition of doing nuclear-related business to assist the International Atomic Energy Agency (IAEA) in regard to the use of nuclear materials solely for peaceful purposes.

Korea joining hands with the U.S. firm will create a much-needed synergistic effect, especially since the U.S. has little experience in building new nuclear power plants in recent years, hobbled by an industry-wide slowdown and a slew of mismanagement risks including overseas asset sales and bankruptcy protection filings.

Korea has the experience, know-how and technical resources and the U.S. firm had previously provided technical support for the full commercialization of Kori 1, Korea's first commercial nuclear power plant.

This is why the combination of the two companies will propel the advancement of the nuclear energy industry, according to Park Ho-jeong, a professor of resources and energy economics at Korea University.

"The two can share knowledge and experience in building, operating and maintenance of nuclear power plants, a virtuous cycle that is needed to sustain the recent growth momentum in the industry," he said.

Policy assistance

The energy ministry is accelerating moves to support nuclear energy businesses in the country and abroad, a rapid and clear shift in policy direction to identify new growth drivers.

Second Vice Minister of Trade, Industry and Energy Park Il-jun met with Mohamed Al Hammadi, managing director and CEO of Emirates Nuclear Energy Corp. (ENEC), a state-run nuclear energy firm of the UAE, at the Ministry of Foreign Affairs in Seoul on May 31.

The UAE CEO was among a dozen UAE nuclear energy authorities including officials of ENEC's maintenance subsidiary Nawah Energy Company, and Barakah One Company (BOC), the manager of sales for electricity generated at the Barakah Nuclear Energy Plant.

The bilateral cooperation was reaffirmed after Trade, Industry and Energy Minister Lee Chang-yang met with UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber, the managing director and group CEO of the Abu Dhabi National Oil Company (ADNOC Group), at Lotte Hotel Seoul, June 8.

At the ministerial-level meeting they discussed ways to cooperate further in nuclear power, as solidified by the successful implementation of key joint projects including the Barakah plant and energy infrastructure as well as oil field development.

The UAE requested that Korean firms share knowledge on digitization, e-learning and privacy protection in high-tech and biopharmaceutical industries.

The ministry seeks to strengthen the competitiveness of local nuclear power businesses to facilitate the export of Korea's exceptional nuclear power technologies to the global market.

"We will revitalize the nuclear power ecosystem, thereby promoting the overseas expansion of other new industries encompassing IT, rechargeable batteries and hydrogen businesses to create jobs and bolster economic growth," a ministry official said.

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