[Column] Nuclear Power Ecosystem, Worthwhile Endurance Through the Downturn

[Asia Economy Reporter Donghoon Jeong] On the 19th, the nuclear power plant parts company Samhong Machinery in Changwon, Gyeongnam was filled with loud noise. To continue a conversation, one had to put their ear and mouth close to each other due to the sound of cutting and welding steel to produce nuclear power plant parts. Despite the welding smoke filling the air, CEO Kim Hongbeom and company officials kept smiling. Their positivity learned from enduring the ‘nuclear power plant recession’ was that "having work itself is hope."

From 2021 until early last year, this company had to cut employee salaries by 15% because there was no work. Production manager Joo Seongman, who voluntarily returned 100% of his salary, said, "If employees quit the company thinking ‘it’s not profitable,’ they usually become delivery riders or self-employed." He added, "If they work in jobs unrelated to nuclear power plants, eventually (the nuclear power industry) loses skilled technicians and employees." Manager Joo returned his entire salary out of a sense of responsibility because he did not want to lose people.

Directly met nuclear power plant partner company officials emphasized the responsibility of nuclear power as an energy source and future industry. CEO Kim Hongbeom said, "We cannot pass the energy crisis on to our children." He also held hope that the development of Small Modular Reactors (SMR) and 4th generation nuclear power plants could become new sources of income for future generations in the era of energy security and crisis.

As of 2021, the proportion of imports in South Korea’s energy consumption was 93%, accounting for 14% of the country’s total imports. Due to the Russia-Ukraine war, energy prices soared last year, likely increasing this figure. This winter, we are feeling the energy crisis through heating costs. Without nuclear power plants, heating and electricity bills would skyrocket. When energy prices rise, South Korea’s competitiveness declines.

South Korea actively developed nuclear technology in the past to proactively respond to energy crises. It still possesses a nuclear power plant ecosystem capable of manufacturing everything from bolts and nuts used in reactors to steam generators. This year, projects such as the 30 trillion won Czech nuclear power plant project, the 40 trillion won new nuclear power plant construction in Poland, and the 12 trillion won Saudi Arabia nuclear power plant project are scheduled. The public and private sectors must quickly unite their capabilities and run as a ‘nuclear power plant one team.’