Ministry of Trade, Industry and Energy

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the final completion ceremony of Shin Hanul units 1 and 2 and the groundbreaking ceremony of Shin Hanul units 3 and 4 today held in Uljin County of North Gyeongsang Province with the participation of local residents, nuclear industry personnel, nuclear energy majoring university students, and Korea Nuclear Meister High School students.

 

Also attending the ceremonies were a number of key industry figures including the Korea Hydro and Nuclear Power (KHNP) President to congratulate the successful completion of Shin Hanul 1 and 2, as well as the groundbreaking of the Shin Hanul 3 and 4 following the recently granted construction permit.

 

As a twin unit, Shin Hanul 1 and 2 each began commercial operation in December 2022 and April 2024, respectively. They are Korea’s seventh case of APR1400 technology application.

 

Their final completion is meaningful in that Shin Hanul 1 and 2 can help secure a more stable power source to respond to the sharply rising power demand brought on by the rise of high-tech industries. The amount of power needed to operate a single cutting-edge semiconductor production facility requires 1–1.5GW of electrical power, so by this calculation, Shin Hanul units 1 and 2 are producing enough power to run 2–3 semiconductor plants.

 

Moreover, the completion of the two units signal another step towards achieving carbon neutrality. As nuclear energy is a carbon-free energy source, carbon dioxide emissions can be reduced by roughly 17.9 million metric tons per annum on the premise that Shin Hanul units 1 and 2 are to replace coal-fired power generation.

 

Lastly, the activation of Shin Hanul 1 and 2 is expected to considerably help improve Korea’s trade balance and reduce energy imports in view of the nation’s given conditions. Should the two units replace LNG power generation, more than 1.37 million tons of LNG imports will be trimmed, generating approximately KRW 1.5 trillion worth of import substitution effect.

 

Meanwhile, the Yoon administration further made the decision to resume construction of Shin Hanul units 3 and 4 under the new regime’s energy policy directions announced in July 2022 with an aim to normalize the then flailing nuclear energy industry hit by the previous phase-out policy.

 

In tandem with the Yoon administration’s decision, the Korean government continued to increase the supply of work across the nuclear industry to restore the ecosystem. Through collaboration with policy funding institutions, the Government has been providing loans and guarantees to troubled SMEs and middle-market companies to heighten liquidity in the wake of the nuclear phase-out.

 

As a result, the size and scale of the nuclear energy industry and related business investments have turned to an expansion since the current administration’s taking office, laying down the groundwork for Korea’s nuclear power industry to make new leaps.

 

The completion of the Shin Hanul units 1 and 2 and the groundbreaking of units 3 and 4 are considered a decisive step towards realizing the full normalization of Korea’s nuclear energy ecosystem, alongside KHNP’s recent selection as preferred bidder for the Czech Republic’s new nuclear reactor project. Building on this momentum, the Korean government plans to push the following four chief policy tasks to develop the nation’s nuclear industry into a global powerhouse.

 

First, the Government will establish a support system to enhance the domestic ecosystem’s competitiveness by designing a predictable and sustainable mid-to-long term nuclear energy policy, while promptly moving forward legislative procedures for the special act on nuclear industry assistance to maintain consistent support. It also plans to announce a mid-to-long term nuclear industry roadmap by the end of this year.

 

Second, the role of the nuclear energy sector will be expanded so as to stabilize the power supply needed for nurturing advanced industries like artificial intelligence (AI) and semiconductors, as well as for attaining carbon neutrality and bolstering energy security. To this end, efforts for the development and distribution of small modular reactors (SMRs) will be actively accommodated.

 

Third, the nuclear energy sector will be nurtured into Korea’s export-leading industry. The Government intends to diversify the export portfolio by extending its scope beyond reactor exports to also cover nuclear reactor maintenance, while increasing the budget for export assistance.

 

Fourth, the Government will concentrate support for the legislation of the Special Act on the Management of High-Level Radioactive Waste, a crucial device for stable nuclear reactor operation.

 

At today’s ceremonies, a total of 12 government awards were presented to individuals for their contribution to the industry, with the Silver Tower Order of Industrial Service Merit going to Director Hong Seung-ho for his dedication to overseeing the operation permit and completion management process for Shin Hanul unit 2 and the construction permit for Shin Hanul units 3 and 4.

 

Following the completion ceremony, Minister Ahn visited the main control room of Shin Hanul units 1 and 2 and encouraged workers covering the 24-hour responsibility, emphasizing that safety is of utmost importance in nuclear reactor management.