[Featured Stock] Seojeon Electric Receives Top Grade Certification in Nuclear Power Electrical Sector... Nuclear Power Stocks Rally Baton Pass

[Asia Economy Reporter Hyungsoo Park] Nuclear power-related stocks are gaining attention in the domestic stock market as Bill Gates, the founder of Microsoft (MS), recently announced plans to build Small Modular Reactors (SMRs) in the United States. Seojeon Electric has been continuing a steep surge in its stock price since the day before.

As of 12:44 PM on the 8th, Seojeon Electric is trading at 6,630 KRW, up 14.51% from the previous day.

After hitting the daily price limit the day before, it has maintained an upward trend for two consecutive days. Its market capitalization has exceeded 60 billion KRW.

On this day, nuclear power-related stocks showed mixed results. Companies such as Doosan Heavy Industries and Woojin, which had been on a rapid rally, fell due to profit-taking sell-offs, while latecomers like KEPCO Industrial Development, Woori Technology, and Gwangmyeong Electric continued their upward momentum.

Lee Euntaek, head of the investment strategy team at KB Securities, analyzed, "It feels like the value stock theme related to nuclear power stocks is being exhausted through overheating."

Nuclear power-related stocks in Korea have attracted attention since last month’s Korea-US summit, where the two countries agreed to cooperate on building nuclear power plants in third countries. There is an analysis that this is related to the US making proposals to Korea, a country pursuing nuclear phase-out, amid China and Russia expanding their dominance in the global nuclear power market. Lee explained, “The US has low nuclear construction capability and has chosen a strategy to partner with Korea to secure nuclear power plant orders.”

In addition, Bill Gates has drawn attention to Small Modular Reactors (SMRs). The reactor is a Sodium-cooled Fast Reactor (SFR) using sodium as a coolant, and its name is ‘Natrium.’ Bill Gates plans to build a Natrium reactor on the site of a closed coal-fired power plant in Wyoming, USA, through TerraPower, in which he has invested, and Pacificorp, an electric utility owned by Warren Buffett, known as an investment genius. He explained that Natrium will be a ‘game changer’ in the energy industry preparing for climate change. The US Joe Biden administration included advanced reactor development in its $2 trillion ‘Jobs Plan’ announced to tackle climate change and win competition against China.

Professor Jung Yonghoon of KAIST’s Department of Nuclear and Quantum Engineering wrote in a media contribution, "Nuclear technology, including small and medium modular reactors, is one of the main energy sources for achieving carbon neutrality and must enhance safety to perform 200% of its role." He added, "A nuclear phase-out policy is illogical for a country capable of handling large reactors, small reactors, and spent nuclear fuel recycling well."

Seojeon Electric, a leader in the domestic power distribution panel market, achieved significant technical results last year. It newly acquired the nuclear quality assurance certification required by the Electric Power Industry Technical Standards, specifically the KEPIC-EN certification for the nuclear electric sector. The certification scope covers ‘manufacturing of Class 1 electrical high-voltage and low-voltage switchgear and motor control centers.’

At that time, CEO Kim Hansoo said, “We have been recognized for our technical capability to manufacture distribution panels and MCCs that can be used on the primary side of nuclear power plants,” adding, “We see this as an opportunity to enter the plant market that requires Q-class certification, including nuclear power plant refurbishment volumes.” Q-class is a quality certification for items related to reactor containment buildings, nuclear fuel buildings, and reactor safety. It represents the highest grade of certification in the nuclear field.

Seojeon Electric is producing products that respond to environmental issues such as climate change and are safe against earthquakes and natural disasters. It is also continuously promoting additional services by connecting power equipment with communication networks.