Instead of Nuclear Power, They Said They Would Promote the Decommissioning Industry... 'Moon's Pledge' Research Institutes Also Passed to the Next Government

Government Plans to Begin Construction of Nuclear Decommissioning Research Institute in October
Delayed by One Year After Failing Preliminary Feasibility Study Last Year
Possibility of Reconsideration Under Yoon Administration
Decommissioning Work on Gori Unit 1 Also 'Stalled'

The country's first commercial nuclear power plant, Kori Unit 1. Permanently shut down in 2017.
[Photo by Asia Economy DB]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The nuclear power plant dismantling research institute, which was a campaign pledge of President Moon Jae-in, has ultimately been passed on to the next administration. There are criticisms that the nuclear power plant dismantling industry, which the government has designated as a future growth engine under its nuclear phase-out policy, has been stagnant for several years.

According to related ministries on the 5th, Korea Hydro & Nuclear Power (KHNP) is currently conducting practical work to begin construction of the nuclear power plant dismantling research institute in Busan this October. About 20 KHNP personnel are involved in the preparation work for the research institute, with the expected completion date set for 2026. KHNP also plans to start construction next year in the first half of the year of the Small Modular Reactor (SMR) Dismantling Technology Institute, a branch concept of the nuclear power plant dismantling research institute, in Gyeongju, Gyeongbuk.

The nuclear power plant dismantling research institute was a campaign pledge of the Moon Jae-in administration, which declared a nuclear phase-out. This was because the government emphasized fostering the nuclear power plant dismantling industry as a pillar of its nuclear phase-out policy. The government also presented an ambitious plan to become a global leader in the nuclear dismantling market by leading the training of specialized personnel and research and development (R&D) of core technologies centered on the research institute. In the "Nuclear Power Plant Dismantling Industry Promotion Strategy" announced in 2019, the research institute was identified as a key infrastructure for fostering the dismantling industry and supporting small and medium-sized enterprises.

KISTEP: "Some Benefit Effects Overestimated"

The government originally planned to start construction of the nuclear power plant dismantling research institute in the second half of last year. However, the schedule was delayed when the "Nuclear Power Plant Dismantling Core Technology Development Project," which included the budget for the research institute, failed the preliminary feasibility study early last year. The Korea Institute of S&T Planning and Evaluation (KISTEP), which conducted the review, pointed out in its report that some of the benefit effects anticipated by the government were overestimated. It also expressed that the government's plan to increase the global market share of nuclear power plant dismantling to 10% by 2035 lacked sufficient logic and evidence.

Government's plan to promote the Nuclear Power Plant Decommissioning Research Institute.
[Photo by Ministry of Trade, Industry and Energy]

As a result, the nuclear power plant dismantling research institute, the first key step in fostering the dismantling industry, was delayed by more than a year from the start of construction. Although it was a core task emphasized from the beginning of the current administration, it has ultimately been postponed to the next government. The institute's launch schedule has been delayed by two years compared to the original plan. The government initially planned to complete both the nuclear power plant dismantling research institute and the SMR Dismantling Technology Institute by 2024.

The bigger problem is that even the construction schedule for the second half of this year is uncertain. In September last year, the government reduced the budget for the nuclear dismantling project by more than 300 billion won and reapplied for the preliminary feasibility study. The results of this feasibility study will be announced around May this year, when the next government takes office. If Yoon Seok-youl, the People Power Party presidential candidate who pledged to continue operating nuclear power plants, assumes power, there is a high possibility that the nuclear dismantling project, which was a focus of the previous administration, will be reconsidered from scratch.

The economic feasibility controversy of the nuclear dismantling project is also an obstacle to passing the feasibility study. According to the Korea Institute of Energy Technology Evaluation and Planning, if 737.2 billion won is invested in core technology development for nuclear dismantling from this year until 2029, the expected benefits amount to 576.3 billion won. The benefit-cost ratio (B/C) is 0.782, falling below the economic feasibility standard of 1.

Budget Likely to Be Cut Even If Feasibility Study Passes

Even if the feasibility study is passed after many twists and turns, it is analyzed that the budget allocated will be significantly reduced compared to the government’s plan. This takes into account the fact that budgets are usually further cut during feasibility study reviews. Professor Jung Dong-wook of the Department of Energy Systems Engineering at Chung-Ang University explained, "Depending on the administration's policy, the 10 nuclear power plants whose lifespan expires by 2030 can be operated until 2040," adding, "In this case, the nuclear power plants that actually need to be dismantled immediately are only two: Kori Unit 1 and Wolsong Unit 1, so the cost-effectiveness of the investment can be considered low."

Expected site for the Nuclear Power Plant Decommissioning Research Institute.
[Photo by Ministry of Trade, Industry and Energy]

There is also controversy over splitting the research institute into two locations not far apart. If the research institute is divided into two locations, Busan·Ulsan and Gyeongju, indirect costs such as auxiliary facilities and administrative personnel will inevitably increase significantly. Even the main office of the research institute has its registered address in Busan, but the main gate is in Ulsan. There are criticisms that the government has accepted financial and administrative waste to court regional votes. Professor Jung said, "Building the nuclear power plant dismantling research institute in two locations is a result of political logic," adding, "Although the characteristics of SMRs and large reactors differ, it is not to the extent that the research institute should be built in two locations."

The government’s plan has not only been derailed for the nuclear power plant dismantling research institute. The dismantling work of Kori Unit 1, which was permanently shut down in 2017, has already been delayed by more than two years. The government originally planned to start dismantling Kori Unit 1 in the second half of this year and complete the dismantling by 2032, 10 years later. However, procedures necessary for dismantling, such as approval of the dismantling plan, have been delayed one by one, making actual dismantling possible no earlier than 2024. While the dismantling procedures have been sluggish, KHNP’s estimated dismantling period for Kori Unit 1 has also increased from 10 years and 6 months to 13 years, extending the completion of dismantling to 2037.

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