SMR Led by the Private Sector... Association Launched and Joint Venture Established

SMR Alliance 1st Anniversary General Meeting Held
Ministry of Industry Shares Strategy for SMR Leading Zone Advancement

Choi Nam-ho, Vice Minister of the Ministry of Trade, Industry and Energy, is delivering a congratulatory speech at the '1st Anniversary General Meeting of the Small Modular Reactor (SMR) Alliance' held on the 3rd at the Plaza Hotel in Jung-gu, Seoul. Photo by Ministry of Trade, Industry and Energy

The SMR Association will be launched early next year to expedite the commercialization of Small Modular Reactors (SMRs), which are gaining attention as the next-generation nuclear power technology. A private joint venture will also be established to commercialize the innovative SMR (i-SMR) currently under development. Unlike large nuclear power plants, which have been primarily led by the government and public sector, SMRs are expected to be driven mainly by private companies.

On the 3rd, the Ministry of Trade, Industry and Energy (MOTIE) announced at the '1st Anniversary General Meeting of the SMR Alliance' held at The Plaza Hotel in Seoul that it shared the 'Strategy to Leap Forward as a Leading SMR Nation,' which includes expanding private sector participation in the nuclear power market.

To become a leading SMR nation, MOTIE presented policy directions including ▲support for the construction and operation of Korea-type i-SMR ▲promotion of private business utilizing SMRs ▲foundry establishment ▲infrastructure maintenance. They also revealed plans to promote demonstration support projects necessary for the construction and operation of the first i-SMR unit currently under development and to establish a private joint venture commercialization corporation (tentatively named i-SMR Holdings). The government plans to create a policy fund worth 80 billion KRW to invest in the nuclear power industry, including SMRs.

MOTIE expressed expectations that "the spread of SMRs will enable the domestic nuclear power industry, which has been monopolized by the public sector, to unleash private sector creativity in areas such as business development and marketing."

At the SMR Alliance launch ceremony held on July 4, 2023, attendees are taking a commemorative photo.

At the event, member companies declared their vision to formally transform the SMR Alliance into an official association to take a leading role, as conditions for commercialization have been met, including the inclusion of SMRs in the 11th Basic Plan for Electricity Supply and Demand. The SMR Association will serve as a channel to convey the voices of related companies to the government and the National Assembly. It is scheduled to be launched in the first half of next year following preparations within this year.

In his congratulatory speech, MOTIE’s 2nd Vice Minister Choi Nam-ho stated, "To revitalize the SMR industry, we will actively support the strengthening of private sector capabilities in a flexible and efficient manner while maintaining safety as the top priority." Jang Yong-ho, CEO of SK Co., Ltd., which serves as the chairman company of the SMR Alliance, said, "SMRs will become an energy source applied to achieve carbon neutrality and advanced industries such as semiconductors and AI data centers," adding, "It is necessary to secure public acceptance and improve licensing systems."

SMRs refer to reactors with an electric output of 300 megawatts (MW) or less, designed so that reactor components are produced as modules in factories and can be easily assembled on-site. The recently disclosed working draft of the 11th Basic Plan for Electricity Supply and Demand predicts that a 700MW scale SMR will be needed between 2035 and 2036. The SMR Alliance, launched in July last year, includes 44 members such as private companies like SK (chairman company) and GS Energy (business developer), as well as public institutions like Korea Hydro & Nuclear Power and the Korea Energy Economics Institute, and has been establishing business development and regulatory improvement strategies over the past year.