Bill Gates' Visit to Korea Brings Positive News for SMR-Related Stocks

SK Group Invests in Terrafarm Founded by Gates
SK Innovation Stock Rises Over 5%
Pharmaceutical Manufacturing Stocks Also Gain Attention

Microsoft founder Bill Gates, co-chairman of the Bill & Melinda Gates Foundation, is giving a speech at the National Assembly Budget Committee plenary session on the 16th. Photo by National Assembly Press Photographers Group

[Asia Economy Reporter Kwon Jae-hee] Bill Gates, the founder of Microsoft (MS) and co-chair of the Bill & Melinda Gates Foundation, is visiting South Korea for a 3-day, 2-night trip starting on the 15th, drawing attention to related stocks. In line with this visit, SK Group is making an equity investment in TerraPower, an SMR (Small Modular Reactor) company founded by Gates, and Gates is scheduled to visit SK Bioscience, which is expected to be a positive factor for SMR and bio CMO (Contract Manufacturing Organization) related stocks.

According to the Korea Exchange on the 16th, as of 9:45 a.m., SK Innovation was trading at 210,500 KRW, up 5.51% from the previous trading day. SK was also up 0.65% at 231,500 KRW. The day before, SK Inc. and SK Innovation announced a decision to invest 300 billion KRW in TerraPower. TerraPower is an SMR company founded by Gates in 2008. SMR refers to small reactors with a capacity of 500MW (megawatts) or less. Compared to existing large nuclear power plants, SMRs offer higher safety, simplified design and construction methods, resulting in significantly lower installation and operating costs. Additionally, SMRs have advantages such as ease of integrating new technologies, low carbon emissions, and high power generation efficiency, earning them nicknames like the "dream nuclear power plant" and "4th generation nuclear power plant." With SK and SK Innovation investing in TerraPower, related stocks have attracted attention and shown strength early in the trading session. Other SMR-related stocks mentioned include Doosan Enerbility, Boseong Powertech, Woori Technology, Hanshin Machinery, Bitsro Tech, and KEPCO KPS.

Previously, SMRs gained attention when President Yoon Suk-yeol decided to abolish the previous Moon Jae-in administration's nuclear phase-out policy. Furthermore, as the world sets a net-zero (Net Zero: zero greenhouse gas net emissions) target by 2050 to address climate change and energy security, there is a growing consensus that SMRs are essential to achieving this goal.

In addition to SMRs, CMO-related stocks are also drawing interest in line with Gates' visit. SK Bioscience is a representative CMO-related stock. Gates is expected to visit SK Bioscience to discuss COVID-19 vaccine production. Since "international cooperation on COVID-19" is the purpose of Gates' visit, he will also deliver a speech on this topic at the National Assembly today and discuss cooperation plans for vaccine support to underdeveloped countries during a meeting with President Yoon Suk-yeol. Previously, Gates began supporting SK Chemicals' typhoid vaccine clinical research with $4.9 million (approximately 6.4 billion KRW) in 2014, followed by sequential support of $3.6 million (approximately 4.7 billion KRW) and $10 million (approximately 13.1 billion KRW) for SK Bioscience's COVID-19 vaccine development in 2020.