Representative Heo Sungmu Proposes SMR Special Act: "Let's Introduce a Dedicated Fund"

The SMR Special Act, aimed at fostering small modular reactors (SMRs) as a strategic industry, has been proposed for the second time by the ruling party.

On July 16, Representative Heo Sungmu of the Democratic Party of Korea (Changwon Seongsan District), a member of the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee, announced that he had introduced a special bill that comprehensively designs the policy, financial, and market structures necessary for SMR technology to be realized as an actual industry.

In addition to Representative Heo, the bill was co-sponsored by Representatives Kim Donga, Kim Moonsu, Park Mingyu, Yoon Youngseok, Lee Eonju, Lee Jongbae, Jang Cheolmin, Choi Hyungdoo, and Hwang Jeonga.

Previously, in June, Representative Hwang Jeonga of the Democratic Party of Korea (Daejeon Yuseong District B) also proposed the "Special Act on the Promotion and Support of Small Modular Reactor Technology Development." With the ruling party, which holds an absolute majority in the National Assembly, introducing SMR special acts in succession, there is growing attention on whether the legislation will be enacted.

Heo Sungmu's office explained, "This bill focuses on creating an environment that goes beyond demonstration-centered support to enable private investment and revenue generation."

Specifically, the bill includes concrete implementation measures to establish SMRs as strategic assets for the energy and export industries, such as: designation of industrial special zones, creation of a dedicated fund, introduction of a reactor levy, allowance of direct power purchase agreements (PPA), and a system for compensating differences in power generation prices.

The special bill includes the introduction of a dedicated fund as a means of securing finances to attract private investment and ensure industrial sustainability. The provision for designating industrial special zones is not merely a geographic demarcation, but grants substantial special benefits, such as simplified licensing procedures and priority support for infrastructure, to facilitate site selection and business initiation for SMR-related companies.

The bill also incorporates a full-cycle support system in the law, covering licensing, standardization, certification, and export, and stipulates the establishment of a dedicated agency to ensure policy consistency.

A representative from Heo Sungmu's office stated, "The bill is characterized by its systematic design, covering not only technology development but also inducing private investment, licensing, special zone designation, and revenue-generating structures," adding, "Through prior consultations with the Ministry of Trade, Industry and Energy, we have enhanced its practical feasibility."

Representative Heo Sungmu emphasized, "We have prepared this bill to ensure that SMRs do not remain merely as technology, but take root as a real business and export industry," adding, "We will continue to strengthen the legislative foundation so that SMRs can become a core asset supporting both Korea's energy security and export strategy."

Previously, in October last year, Representative Park Chungkwon of the People Power Party proposed the "Special Act on the Promotion and Support of Advanced Reactor Development," while Representatives Choi Hyungdoo of the People Power Party and Chun Haram of the Reform Innovation Party jointly proposed the "Act on the Commercialization and Export Support of Small and Medium-Sized Reactors" in June.