South Korea’s nuclear industry, once plagued by the nuclear phase-out policy, is gearing up for a comeback. Corporate investment in nuclear power has tripled in the past two years, signaling a new era of growth and opportunity.
“For five years during the nuclear phase-out policy, we thought the industry was doomed,” said Park Min-young, 52, an executive at Gumkwang Tech, a nuclear power component manufacturer in Gimhae, South Korea. “But recently, we created a new after-sales service division within the company and hired a new division head - things are really looking up,” he commented while wiping oil off a 12-ton metal nozzle. The component will be used in the Shin Hanul Units 3 and 4, set to begin construction next month.
Even on a Sunday, the factory buzzed with excitement. Six employees were working overtime, moving 10-ton parts to the measurement room using a 20-ton crane, where they inspected the size and surface condition. “If this momentum continues and we can secure orders for Czech nuclear plants, we might finally recover from the damage caused by the nuclear phase-out policy,” Park added.
The country’s nuclear sector, which had been severely impacted by the former Moon Jae-in administration’s nuclear phase-out policy, is now on a path to recovery. Switzerland’s recent decision to reverse its nuclear phase-out, combined with the growing global demand for electricity, driven by the rise of artificial intelligence (AI) and electric vehicles, is fueling what industry insiders have dubbed the “nuclear renaissance.” Around 500 new nuclear plants have been planned or are under construction globally, offering fresh opportunities for domestic firms.
Companies, including Doosan Enerbility and small- and medium-sized subcontractors, have more than tripled their investment in nuclear power facilities in two years. The contract volume these companies have signed with Korea Hydro & Nuclear Power (KHNP) has increased by 900 billion won ($670 million) over the past two years.
The construction of Shin Hanul Units 3 and 4, set to break ground next month, and the 24 trillion won ($18 billion) project to build nuclear reactors in the Czech Republic is fueling the sector’s recovery. Last year, the sector’s total revenue reached a record 32.1 trillion won ($24 billion), according to the Korea Atomic Industrial Forum on September 4. Analysts predict this figure could rise further once new orders start rolling in.
Small- and medium-sized enterprises (SMEs), which make up about 90% of the country’s nuclear firms, are starting to feel the trickle-down effects of this resurgence. Wonbidoo Technology, a nuclear power equipment manufacturer based in Changwon, had not received any new orders during the previous administration’s phase-out policy but resumed production last April to supply parts for Shin Hanul Units 3 and 4. “It took over a month just to reassemble and clean the machinery that sat idle for six years,” said Wonbidoo CEO Park Bong-kyu.
Sam Hong Machinery, which produces steam generator components, has also ramped up operations. The company has been aggressively hiring, with its workforce increasing from 70 during the phase-out to 120 last year, and plans to hire 10 more employees this year. “In 2021, we had to ask employees for a 15% pay cut to survive, and some of our senior executives worked without pay for months,” said Kim Seung-won, the company’s CEO. “I sincerely hope that the nuclear manufacturing sector, which has a high localization rate among industries, will continue to thrive.”
As international orders for nuclear projects continue to grow, more SMEs are applying for export support programs. By July, 60 companies had applied for KHNP’s export support program, more than double the 29 applicants from the previous year.
“As many nuclear reactors extend their operations and new orders come in, and with the Czech nuclear plant deal, more companies are seeking opportunities overseas,” said Noh Baek-sik, Vice President of the Korea Atomic Industrial Forum.
