How Much Do Local Governments Earn from Nuclear Power Plants?

Ulsan Ulju-gun Shin-Kori Units 3 and 4 Pay 3.5 Billion KRW in Property Tax for June
Local Resource Facility Tax Reaches 20 Billion KRW Annually... 1.2 Trillion KRW Over 60 Years of Operation

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] How much tax revenue do local governments hosting nuclear power plants generate? The annual tax amount paid by the Shin-Kori nuclear power plant to local governments has been revealed.

Korea Hydro & Nuclear Power's Saeul Nuclear Headquarters paid approximately 3.5 billion KRW in property tax for Shin-Kori Units 3 and 4 for the month of June, and about 2.1 billion KRW in local resource facility tax to the jurisdictional local government, Ulsan Ulju-gun.

Property tax is a tax imposed on certain properties, and the person or corporation owning the property on the tax assessment date is obligated to pay it. Property tax is a local tax, not a national tax, and is paid to autonomous local governments such as districts or counties.

The local resource facility tax is a tax imposed on power producers according to the Local Tax Act, and in the case of nuclear power plants, it is charged at 1 KRW per kWh of power generated.

The Saeul Headquarters reports and pays this tax monthly to local governments. They paid about 1.07 billion KRW for the currently operating Shin-Kori Unit 3 and about 1.07 billion KRW for Shin-Kori Unit 4, which began power production after grid connection in April last year.

Assuming an 85% utilization rate for Shin-Kori Units 3 and 4, the local resource facility tax is expected to be around 20.8 billion KRW annually. Considering a 60-year operational period for the nuclear power plant, the total payment would amount to 1.248 trillion KRW.

Since their completion until June 2020, Shin-Kori Units 3 and 4 have paid 96.5 billion KRW in local taxes. Among the items, the local resource facility tax accounted for the largest portion at 40.5 billion KRW, followed by local income tax at 13.2 billion KRW and property tax at 7.7 billion KRW.

Separately, Shin-Kori Unit 3 paid 28.6 billion KRW and Shin-Kori Unit 4 paid 19.2 billion KRW in acquisition tax.

This content was produced with the assistance of AI translation services.