Industry Minister: "Moon Administration's Nuclear Phase-Out Policy Regrettable and Painful" (Comprehensive)

Lee Chang-yang "Regret Over Nuclear Phase-Out... Positive Evaluation of K-Nuclear Abroad"
"Friendly Atmosphere with Czech Republic and Poland... Synergy Expected in Defense Cooperation"

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy, First Remarks at the Energy Committee
(Seoul=Yonhap News) Reporter Lim Hwayoung = Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is speaking at the 25th Energy Committee, held for the first time since the Yoon Seok-yeol administration, at a hotel in Jung-gu, Seoul on the afternoon of the 23rd of last month. 2022.6.23
hwayoung7@yna.co.kr
(End)

＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

[Asia Economy Sejong=Reporter Lee Jun-hyung] Lee Chang-yang, Minister of Trade, Industry and Energy, criticized the Moon Jae-in administration's ‘nuclear phase-out’ policy as a "regrettable policy." Recently promoting ‘nuclear power plant sales’ in the Czech Republic and Poland, Minister Lee also gave a positive assessment of the possibility of nuclear power plant exports.

At a press briefing held in Sejong on the afternoon of the 5th, Minister Lee said, "The deficit of Korea Electric Power Corporation due to energy prices was an inevitable factor that the government could not control," adding, "However, I painfully acknowledge that there were parts that could have been addressed policy-wise, but were not, due to the excessive emphasis on the nuclear phase-out policy."

This is the first time Minister Lee, who has been in office for 50 days, publicly expressed his stance on the nuclear phase-out policy. This signifies that the government's policy direction has become clear. In fact, the Ministry of Trade, Industry and Energy announced the ‘New Government Energy Policy Direction’ on the same day (the 5th), completely scrapping the ‘Energy Transition (Nuclear Phase-out) Roadmap’ established by the Moon Jae-in administration. This roadmap, which specified the suspension of new nuclear power plant construction and reduction of nuclear power’s share, was regarded as a symbol of the nuclear phase-out policy.

Minister Lee also pointed out the ‘excessive promotion’ of renewable energy. In fact, the renewable energy purchased by KEPCO last year was 41,059 GWh, nearly 1.6 times more than in 2017 (26,100 GWh). Minister Lee said, "The previous government promoted renewable energy extensively for carbon neutrality," adding, "It is necessary to reconsider whether the pace of this promotion was appropriate." This is why the Ministry included a ‘rational reestablishment’ of renewable energy supply targets in the new government’s energy policy direction.

He viewed Korea’s nuclear power plant export prospects positively. Earlier, to support nuclear power plant orders, Minister Lee visited the Czech Republic and Poland from the 27th of last month to the 1st of this month, holding consecutive high-level talks. The Czech Republic and Poland are each pursuing new nuclear power plant construction projects worth approximately 8 trillion won and 40 trillion won, respectively. The nuclear power plant projects in the Czech Republic and Poland are expected to be a three-way competition among Korea, the United States, and France.

Minister Lee said, "A sufficiently friendly atmosphere has been formed in the Czech Republic and Poland," adding, "The evaluation of Korean nuclear power plants overseas is favorable, so I believe the possibility of future exports is high." He continued, "Although we did not directly discuss defense exports, I heard from the Ministry of National Defense that there are tangible matters," and said, "If defense cooperation such as defense industry exports is realized, it could create a synergy effect for nuclear power plant advancement."

Minister Lee Chang-yang conversing with the Polish Minister of Climate and Environment
(Seoul=Yonhap News) Lee Chang-yang, Minister of Trade, Industry and Energy (left), is seen on June 30 (local time) conversing with Anna Moskwa, Polish Minister of Climate and Environment, at the Ministry of Climate and Environment in Warsaw, Poland. 2022.7.1 [Provided by the Ministry of Trade, Industry and Energy. Redistribution and DB reproduction prohibited]
Photo by Yonhap News
(End)

＜Copyright (c) Yonhap News Agency, unauthorized reproduction and redistribution prohibited＞

Minister Lee also emphasized the importance of tax credits for facility investments. He pointed out, "Looking at the data, the growth rate of facility investment under the previous government was close to zero," adding, "It is like the production base of the entire economy is aging." He continued, "Increasing facility investment is necessary to improve productivity and absorb price shocks," and said, "Pooling policy efforts to promote corporate facility investment is key to responding to stagflation (economic recession with rising prices)."

He also mentioned the comprehensive semiconductor measures to be announced by the Ministry of Trade, Industry and Energy later this month. Minister Lee said, "For the measures to have ripple effects, related industries such as batteries, displays, and artificial intelligence (AI) must grow simultaneously based on semiconductors," adding, "We will develop strategies on how to expand the semiconductor support effects to other industries." He further said, "Although government-wide research and development (R&D) funding is increasing, it is questionable whether the institutional effects are being well nurtured," and added, "We plan to establish an alliance connecting the government R&D system with related ministries such as the Ministry of Science and ICT and the Ministry of SMEs and Startups."