[Opinion] US-Korea Nuclear Cooperation Requires a Synergistic Action Strategy

Professor Jeong Dong-wook, Department of Energy Systems Engineering, Chung-Ang University.
Photo by Asia Economy DB

The visit of U.S. President Joe Biden to South Korea is expected to strengthen Korea-U.S. nuclear cooperation. Focusing only on the nuclear-related aspects of the summit between the two leaders, the key points include cooperation in the overseas nuclear power plant market, collaboration on small modular reactors (SMRs), and advanced reactor technology development. Cooperation with the U.S., the pioneer country in nuclear power, is enough to raise expectations for a leap forward in Korea’s nuclear technology and industry.

Currently, there are 441 nuclear reactors worldwide with a capacity of 390GW. The International Energy Agency (IEA) projects that the nuclear power capacity will reach 812GW by 2050. Including the replacement demand for operating reactors, there is a demand for at least 600GW, which means 600 units of 1GW-class reactors. Moreover, Russia, which has dominated the nuclear market, is expected to be excluded from the global market due to the war with Ukraine, and China still lacks international trust to enter the global market. Ultimately, the countries realistically capable of supplying nuclear power plants are the U.S., France, and South Korea.

The current most promising nuclear market is Eastern Europe. Countries such as the Czech Republic, Poland, and Hungary are planning new nuclear power plant constructions one after another. The inclusion of nuclear power in the European Union (EU) taxonomy has also been almost finalized. Even though Europe is France’s backyard, if Korea and the U.S. join forces, the possibility of winning orders is overwhelmingly high.

The problem is that while cooperation is possible when the market is not visible, it becomes difficult to cooperate when the market is imminent. Both Korea and the U.S. have their own unique reactors: Korea has the APR1400, and the U.S. has the AP1000. If Korea and the U.S. mutually check each other by independently bidding, France is likely to win the orders by default. Therefore, a strategy that allows Korea and the U.S. to compete and cooperate simultaneously is necessary. The U.S. will likely want a form of cooperation where it wins the nuclear power plant orders and Korea participates in the equipment supply chain. However, Korea cannot give up the APR1400, which has proven its competitiveness globally.

The U.S. is also leading in the fiercely competitive global SMR market. The third-generation SMR, NuScale Power Plant, plans to apply for construction approval next year. Domestic private companies are also making significant investments in NuScale. Korean companies investing in U.S. technology is likely the form of cooperation the U.S. government desires. On the other hand, Korea is currently pushing forward technology development targeting the global small modular reactor market in the 2030s. Equal cooperation is difficult with the existing technology gap. If Korea does not secure its own SMR technology promptly, it will inevitably become dependent on U.S. technology.

The advanced reactors mentioned in the Korea-U.S. summit joint declaration refer to fourth-generation reactors. These include Bill Gates’ sodium-cooled reactors and molten salt reactors (MSRs), which are promising for ships. Fourth-generation reactors are expected to take some time to enter the market. Cooperation aimed at the market is difficult, but research collaboration for development is relatively easy.

The U.S. also leads in fourth-generation reactors. This is an area where Korea can gain practical benefits through Korea-U.S. cooperation. The dry processing technology for spent nuclear fuel, which has been promoted through Korea-U.S. joint research over the past decade, is also an important cooperation task. Since Korea lacks nuclear fuel enrichment technology, the residual nuclear fuel from the spent fuel processing process can be used as fuel for fourth-generation reactors.

No matter how good the agreement between the leaders is, conflicts are inevitable during detailed implementation. Wise cooperation plans must be devised so that the results of this summit create synergy effects for both countries. Looking ahead to 2050, it is clear that various reactors will emerge and the nuclear power market will expand. The government should establish a strategy to seek practical benefits with a long-term perspective.

Jeong Dong-wook, Professor, Department of Energy Systems Engineering, Chung-Ang University (President of the Korean Nuclear Society)