[Report] "Korean-style SMR Production and Export in Gyeongju"

"The US small modular reactor (SMR) market is being led by NuScale and TerraPower, aiming for commercialization by 2030. South Korea plans to commercialize by 2034."

The site of Dosan-ri, Munmu Daewang-myeon, Gyeongju, where the Small Modular Reactor (SMR) National Industrial Complex will be established / Photo by Noh Kyung-jo

Jeon Dong-seop, head of the SMR Business Planning Department at Korea Hydro & Nuclear Power (KHNP), said this during a meeting with reporters at the Gyeongju headquarters on the 30th, expressing expectations for synergy from the establishment of the Gyeongju SMR National Industrial Complex.

SMRs are products that complement the limitations and intermittency of renewable energy sources caused by natural conditions by providing stable power through nuclear power plants. According to the UK’s Royal Nuclear Institute, the global SMR market is expected to grow to a maximum of 630 trillion KRW by 2035. As nuclear power emerges as an energy source for decarbonization in the climate crisis era, interest in nuclear power plants is gradually increasing. In particular, there are not many countries capable of constructing and supplying nuclear power plants, but South Korea possesses world-class technology alongside the US and France. Recently, South Korea was selected as the preferred negotiator for the Czech nuclear power plant construction project worth over 24 trillion KRW.

Last March, the government selected Dosan-ri, Munmu-daewang-myeon, Gyeongju, a city with a thousand years of history, as a candidate site for a new national industrial complex and announced plans to develop it as a global SMR hub. The project implementer, Korea Land & Housing Corporation (LH), is currently preparing to apply for a preliminary feasibility study (PFS). This month, LH plans to negotiate detailed matters such as project scale and division of work with Gyeongju City to sign a basic agreement and apply for the Korea Development Institute (KDI) feasibility study within the year. LH is in discussions with tenant companies such as Doosan Enerbility and Samsung Heavy Industries, and it is expected that material, parts, and equipment (MPE) companies will follow.

Kim In-jeon, head of LH’s Daegu-Gyeongbuk Regional Headquarters, explained, "Gyeongju City conducted the first tenant company demand survey, and LH is currently conducting its own. More than 150 companies have expressed their intention to move in, and KDI will conduct another survey later." Completion is scheduled for 2032.

According to LH, SMRs have relatively low initial investment costs and short construction periods, allowing for quick capital recovery. With technological advancements, they can be lighter and have increased power generation capacity, producing almost no carbon emissions. They are expected to be used diversely in hydrogen production, ships, automobiles, and more in the future. According to Gyeongju City, the SMR National Industrial Complex is estimated to generate 730 billion KRW in production inducement effects, 441 billion KRW in added value inducement effects, and 5,399 jobs.

The Gyeongju National Industrial Complex is the first case of an industry focused on nuclear power. The project site visited that day allowed a view of the area across the hills. LH expects the project to proceed quickly since only one household within the site requires demolition and compensation. It is close to the KHNP headquarters and adjacent to the road leading to Donggyeongju TG, making access to the metropolitan transportation network convenient. Together with the five existing nuclear power plants in Gyeongju, KHNP, Korea Radioactive Waste Agency, and the Proton Accelerator Center, the area will be reborn as a nuclear power specialized region.

Kim Jae-kyung, head of LH’s Regional Balance Headquarters, said, "The national industrial complexes to be established in Gyeongju and Andong will become the cornerstone for leading the regional economy in the future," adding, "LH will cooperate with local governments to shorten the project preparation period by about one-third and strive for early groundbreaking."