Anduk Geun, Minister of Industry, "East Sea Gas Field, Interim Results to Be Shared Around May"

Press Briefing with Minister Ahn Duk-geun
Discussion on Korea-US Nuclear Power Cooperation and Gas Field Exploration
Updates on Electricity Supply Plan and Export Strategies

Minister Andeok Geun of the Ministry of Trade, Industry and Energy held a meeting with reporters at a restaurant near Sejong City on the 13th. January 13, 2025. Photo by the Ministry of Trade, Industry and Energy

Minister of Trade, Industry and Energy Anduk Geun evaluated that Korea and the United States have laid the foundation for jointly entering the overseas nuclear power plant market. Regarding the ongoing drilling at the East Sea gas field exploration, an interim result is planned to be announced around May.

Minister Ahn made these remarks during a meeting with reporters at a restaurant near the Government Sejong Complex on the 13th. From the 6th to the 9th (local time), Minister Ahn visited Washington DC and Georgia in the United States, where he discussed ways to strengthen Korea-US industrial, energy, and trade cooperation with the US federal and state governments and Congress before returning home.

During Minister Ahn’s visit to the US, on the 8th (local time), the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs signed an inter-agency agreement (MOU) on “Korea-US Nuclear Export and Cooperation Principles” with the US Department of Energy and the Department of State. This agreement attracted attention as it came amid issues raised by Westinghouse regarding Korea’s selection as the preferred negotiator for the Czech Dukovany nuclear power plant construction project.

With the Korean and US governments agreeing to cooperate on nuclear exports and collaboration, the conflict between Westinghouse and Korea Hydro & Nuclear Power is expected to be resolved amicably, facilitating smooth main negotiations with the Czech Republic by March. Additionally, plans for joint entry into overseas nuclear power plant exports are being discussed. In fact, it is known that Korea Hydro & Nuclear Power and Westinghouse have been conducting behind-the-scenes negotiations on nuclear power plant project cooperation following the MOU between the two countries.

Regarding this, Minister Ahn said, “If we look only at nuclear power, there was almost no dialogue for about eight years until the previous administration, but this time it has been resolved,” adding, “Now we just need to watch how our companies will reap the benefits of these achievements.”

Minister Ahn also stated that the exploration of the Daewanggorae structure, the first drilling site in the East Sea gas field development, will proceed without any setbacks. He said, “Geological analysis takes a long time,” and “The first results are expected around July or August.” He added, “If interim results come out around May before that, we will share the information.”

Minister Ahn continued, “After completing the first drilling, we plan to recover the drilling rig and attract foreign investment for the promising structures discovered,” noting, “Currently, foreign companies interested in investing are watching the results.”

In Washington DC, Minister Ahn met with members of both the House and Senate and requested cooperation to ensure a stable investment environment for companies investing in the US. He said, “Whether it is called the Inflation Reduction Act (IRA) or by another name, I asked that the US support policies, which form the foundation for investments planned over five, ten, or longer years, be maintained stably. Senators and representatives there also sympathized with this.”

Minister Ahn also met with Senator Todd Young (Republican, Indiana), who co-sponsored the 'SHIPS for America Act' to strengthen the US shipbuilding industry, to discuss Korea-US shipbuilding cooperation measures.

Minister Ahn said, “There is a strict legal framework like the Jones Act that has not been touched since World War II, but the US is making efforts to change this regulatory environment,” and predicted, “The Trump administration is planning deep institutional reforms to strengthen naval power and related shipbuilding industries, so several announcements are expected soon.”

Regarding the 11th Basic Plan for Electricity Supply and Demand, which has been delayed due to the lack of a parliamentary report, Minister Ahn emphasized that efforts to persuade the opposition party will continue even if some adjustments are made to the government’s original plan, aiming for its prompt approval.

He said, “In Korea’s energy policy, nuclear power and renewable energy must go hand in hand,” adding, “If delayed, the industry and market will be very concerned and problems may arise, so we are trying to persuade the opposition party to pass it without further delay.”

Minister Ahn explained that the recent continued weakness of the Korean won does not particularly help Korean companies’ exports. He said, “Looking at trends over the past 10 and 5 years, exchange rates have little impact on exports,” and “This is because export mainstay products are shifting from price competition to high-quality, high value-added products such as semiconductors and secondary batteries.”

Minister Ahn said, “There may be talk that export momentum has declined due to the significantly reduced number of working days in January, but we will do our best to maximize exports so that the spark of economic growth does not go out.”