South Korea Reviews Plans for New Nuclear Units and 20-Year License Extensions

The South Korean government is reviewing plans to build new nuclear power units and extend the operating license periods of existing nuclear plants to address mid- to long-term electricity demand growth driven by semiconductor industry clusters in Yongin and the Honam region.

The Ministry of Climate, Energy and Environment submitted a written response to the National Assembly on the 24th, stating that during the revision of the 12th Basic Plan for Electricity Supply and Demand, it will review whether to include new nuclear power plants in the plan, taking into account factors such as electricity supply-demand necessity, construction schedules, regional acceptance, and suitability of nuclear plant sites. The ministry stated that after the draft of the relevant work is published, it will also undergo procedures including National Assembly deliberation, public hearings, strategic environmental impact assessment, and climate change impact assessment.

The background of this discussion is the continued rise in electricity demand from the semiconductor industry. The South Korean government has previously stated that the construction of semiconductor clusters in Yongin and the Honam region requires stable, large-scale power supply. Regarding the Honam region, there are opinions that relying solely on the existing six units at Hanbit Nuclear Power Plant would be insufficient to fully cover the electricity demand of the planned semiconductor manufacturing facilities.

Regarding existing nuclear plants, the Ministry of Climate, Energy and Environment stated that it will consult with the Nuclear Safety and Security Commission (NSSC) and Korea Hydro & Nuclear Power (KHNP) to study more reasonable continued operation license periods. The current discussion focuses on extending the single continued operation license period from 10 years to 20 years.

The South Korean nuclear industry has long held the view that the review cycle for continued operation is lengthy, and if the license period is too short, it reduces the actual operational time available. Taking the Kori Unit 2 as an example, after completing documents such as periodic safety reviews and environmental impact assessments, the NSSC review took 3 years and 7 months. Although the unit was ultimately granted a 10-year continued operation license, the actual additional operational time was approximately 7 years.

Under the current South Korean system, the continued operation period of nuclear plants is primarily based on the provisions of the Enforcement Decree of the Nuclear Safety Act. To extend the continued operation license period from 10 years to 20 years, the corresponding enforcement decree would need to be amended.

In addition to nuclear power planning, the South Korean government is also advancing transmission grid expansion. The Ministry of Economy and Finance has confirmed that 15 national key grid projects are exempt from preliminary feasibility studies, with a total project scale of approximately 14.2 trillion KRW. Korea Electric Power Corporation (KEPCO) will participate in the construction of the relevant grid projects to accommodate the connection of large-scale power consumers and electricity transmission needs.