Moon Seung-wook, Minister of Industry, "Current Ministry of Industry System Preferable to Climate and Energy Department... Nuclear Hydrogen Research Possible"

"Carbon Neutrality Issues Should Be Addressed in Connection with Energy and Industry"
Regarding the Controversy over Resuming Construction of Shin Hanul Units 3 and 4, "Expanding Nuclear Power Is Not Desirable"

[Sejong=Asia Economy Reporter Kwon Haeyoung] On the 25th, Moon Seung-wook, Minister of Trade, Industry and Energy, stated regarding the possibility of establishing a 'Ministry of Climate and Energy' in the next government, "Energy and carbon neutrality issues should be pursued in connection with industry," emphasizing that the current Ministry of Trade, Industry and Energy system is desirable.

At a press briefing held at the Government Complex Sejong on the same day, Minister Moon said, "In fact, other countries are also implementing policies in such a way that energy and carbon neutrality are under one ministry."

He added, "(Carbon neutrality) is also a global issue, so I think the next government needs an organization that can proceed with collaboration with overseas governments," and emphasized, "We will work hard in the current Ministry of Trade, Industry and Energy to ensure that the policies we implement can continue in the long term and help enhance competitiveness."

Earlier, Lee Jae-myung, the Democratic Party presidential candidate, pledged to separate the energy organization from the Ministry of Trade, Industry and Energy and merge it with the Ministry of Environment to establish a Ministry of Climate and Energy.

Regarding questions about the recent announcements by next presidential candidates such as Yoon Seok-youl of the People Power Party and Ahn Cheol-soo of the People’s Party to resume construction of Shin Hanul Units 3 and 4, which was halted by the current government, Minister Moon clearly stated, "Expanding nuclear power is not desirable according to the current government's position."

He explained, "Currently, 24 nuclear reactors are operating in our country, and there is awareness of issues regarding the operation of many reactors in specific regions," adding, "Until the issues of spent nuclear fuel and high-level radioactive waste disposal are more concretely addressed, we hold the position that expanding nuclear power is not desirable."

However, regarding the need to produce hydrogen using nuclear power for revitalizing the hydrogen economy, he said, "Technical reviews can be conducted," leaving the possibility open.

Minister Moon explained, "There is international discussion about whether hydrogen produced from nuclear power is environmentally friendly, and whether nuclear hydrogen is economically viable also requires discussion," adding, "These are areas that the Ministry of Trade, Industry and Energy should research in relation to the energy mix, and we will not overlook them." However, he added that there are no concrete plans yet.

Regarding the exclusion of nuclear power from the Ministry of Environment’s 'Korean Green Taxonomy (K-Taxonomy),' which is the standard for green financial investment, he believed it would not impact overseas nuclear power orders. Minister Moon said, "There is ongoing debate within the European Union (EU) Commission about whether nuclear power is an environmentally friendly energy source, and we will also review this," adding, "However, in the case of nuclear power exports, financing follows the Korea Export-Import Bank, which adheres to the OECD export credit agency guidelines rather than domestic taxonomy, so I do not think it will be a problem for nuclear power exports."

Regarding criticism that the 'fuel cost adjustment system,' which periodically reflects fuel cost increases and decreases in electricity rates, is not functioning properly, he stated that it has been operated according to principles and that shortcomings will be improved. Minister Moon explained, "Electricity rates have a share in inflation, and if there is no buffer against sudden energy price fluctuations, the economic burden increases, so we created a quarterly adjustment limit device to minimize this," adding, "Since this system is in its second year of operation, if there is a need to improve due to increased volatility in international energy prices, we will review improvement directions going forward."