INCHEON — The South Korean government plans to build the country into a core player in the global nuclear supply chain, centered on small modular reactors, by extending the world-class expertise it has accumulated in designing, manufacturing and building large reactors into the SMR field and transferring the related technology to private companies to grow an industrial ecosystem. Over the longer term, it will also consider widening private participation into the operation and ownership of nuclear plants.
Bae Kyung-hoon, deputy prime minister and minister of science and ICT, outlined the strategy in a keynote address on the 27th at the International Atomic Energy Agency's Ministerial Conference on Nuclear Power, held at Songdo Convensia in Incheon's Yeonsu District. "Nuclear power is a core energy source capable of supplying large volumes of low-carbon electricity continuously and stably," he said.
The IAEA ministerial conference, usually held every four years, is a leading high-level policy forum for discussing the peaceful use of nuclear energy and future policy direction. It is the first time the conference has been held in South Korea. The meeting, which runs through the 29th, drew about 800 participants from the governments of 60 member states, eight international organizations and some 85 companies from home and abroad.
In his opening remarks, Bae stressed that "newly adopting or expanding nuclear power requires policies and institutions, personnel and funding, and a solid foundation to steer long-term projects stably." In the keynote address that followed, he added: "We will fully reflect the demand and operating environment in each field, including stable power supply for artificial intelligence and data centers, industrial heat and ship propulsion. We will overhaul the laws and institutions that connect research, demonstration and field application, and support technologies whose safety has been sufficiently verified in moving to commercialization."
To that end, he also pointed to plans to transfer nuclear technology held by public research institutes to private companies. Meeting with reporters, Bae said: "Just as technology that the Korea Aerospace Research Institute effectively monopolized in the aerospace field is being transferred to Hanwha, in the nuclear field as well we need to transfer technology in stages and foster private companies. The core of that is the investment-style research and development approach."
Asked whether the operation and ownership of nuclear plants, currently led by public entities such as Korea Hydro & Nuclear Power, could be opened to private participation, he left the door open, saying "sufficient discussion is needed." He did not, however, specify a timeline or method.
The government plans to expand investment-style R&D, which goes beyond simply providing research funding to share the risks of technology development with private companies and share the proceeds of commercialization. "SMRs are included in the seven SEED projects we are pursuing," Bae said. "Rather than stopping at funding research and development, we intend to create large-scale R&BD programs or mobilize investment-style R&D so that the government and the private sector can share risks and produce results together."
Under the seven SEED projects, the government has set a goal of beginning detailed design of an SMR jointly with the private sector in 2027 and commercializing a light-water SMR by 2035. For non-light-water SMRs in particular, it plans to lay the groundwork for private-sector-led commercialization from the early stages of development, including by establishing a special purpose company jointly funded by the public and private sectors.
In talks on cooperation with ministers from major countries, Bae expressed Korea's intention to serve as a core hub in the global nuclear supply chain. "The IAEA ministerial conference is being held in Korea because the capabilities we have built up in reactor manufacturing, design and construction have been recognized," he said. "I told them that Korea intends to play its part as a nuclear supply chain country." He also emphasized nuclear technology cooperation with the United States. "Cooperation with the U.S. in the nuclear field must be strengthened further," Bae said. "Among SMRs, sodium-cooled fast reactors are an area that requires a great deal of cooperation with the U.S., and Korea's manufacturing base can be put to use there." He added that "on the strength of its reactor export record in the United Arab Emirates, Korea can establish itself as a nuclear leader and a supply chain country."
He also cited rising electricity demand from the spread of AI as a growth opportunity for the SMR industry. "As AI moves from development and training into full-scale service, more electricity will be needed," Bae said, stressing the need to secure a stable power supply base in advance.
Bae also identified an overhaul of the international regulatory framework as a key task in supporting the commercialization of next-generation nuclear technologies such as SMRs. "Electricity demand will keep growing in many fields, including AI," he said. "We will continue discussions on how to shape the regulations needed to meet that demand." Using the conference as a springboard, the government plans to expand cooperation with major countries on nuclear technology and supply chains and to seek practical partnerships that support private companies' entry into global markets.