Yoon Seok-yeol Administration's Regional Economic Revitalization... Impact on Energy Transition

'Immediate Resumption of Construction' Shin Hanul Units 3 and 4
'Possibility of Resumption' Cheonji Units 1 and 2, Daejin Units 1 and 2, etc.
'Post-Nuclear Phase-Out Devastation' Beneficiaries Include Gyeongbuk Uljin and Yeongdeok Regions

President-elect Yoon Suk-yeol delivering opening remarks while meeting with Christopher Del Corso, Charg? d'Affaires of the United States to Korea, at the office for the president-elect set up at the People Power Party headquarters in Yeouido, Seoul, on the 11th. (Photo by National Assembly Press Photographers)

[Asia Economy Reporter Moon Chaeseok] President-elect Yoon Seok-yeol has decided to establish a Regional Balanced Development Task Force (TF) under the Presidential Transition Committee just two days after his election, drawing attention to its potential impact on energy transition. With the immediate resumption of construction for Shin Hanul Units 3 and 4, and the possibility of restarting construction plans for Cheonji Units 1 and 2, and Daejin Units 1 and 2, economic revitalization is expected in regions such as Uljin County and Yeongdeok County in Gyeongsangbuk-do. Additionally, areas like the national industrial complex in Changwon City, Gyeongsangnam-do?home to key nuclear companies such as Doosan Heavy Industries?and the Solarsido complex in Haenam County, Jeollanam-do, the largest solar power generation complex in Korea, are also expected to benefit.

According to political circles on the 13th, President-elect Yoon announced on the 12th that, in addition to the COVID-19 Crisis Response TF, the Presidential Transition Committee will add a Regional Balanced Development TF, alongside the direct National Integration Special Committee and the Blue House Reform TF. The plan is to gather balanced development opinions through the 17 provincial governments nationwide and reflect them in the new government’s policies. This is aimed at resolving polarization caused by concentration in the metropolitan area. The committee’s personnel appointments are expected to be finalized as early as the end of this week.

According to the People Power Party’s “Presidential Election Pledge Book,” the most notable aspect of the Yoon administration’s energy policy is the plan to use nuclear power as a base load power source. It states that construction of Shin Hanul Units 3 and 4 will be resumed immediately. This is expected to revitalize the economy in areas such as Uljin County, Gyeongsangbuk-do, where Korea Hydro & Nuclear Power’s Hanul Nuclear Power Plant headquarters is located. Furthermore, if construction plans for Cheonji Units 1 and 2 and Daejin Units 1 and 2, which were scrapped under the Moon Jae-in administration, are re-pursued, Yeongdeok County in Gyeongsangbuk-do is also expected to emerge as a beneficiary region. Additionally, the administration has pledged to create 100,000 jobs through nuclear power exports. The revitalization of the ecosystem involving key companies such as Doosan Heavy Industries and component manufacturers is anticipated. The cultivation of engineers for new industries like Small Modular Reactors (SMRs) is also expected to become an important issue. On the other hand, management plans for the Nuclear Decommissioning Research Institute have not yet been clearly disclosed, drawing attention to future policies.

It is also notable that the policy includes not only the abandonment of the nuclear phase-out but also the promotion of batteries and solar power. It proposes fostering hydrogen energy technology, developing new technologies for batteries, fuel cells for transportation and power generation, and solar power. Because of this, companies located in the Changwon National Industrial Complex in Gyeongsangnam-do, which is undergoing smart industrial complex transformation and equipped with hydrogen refueling infrastructure, are likely to benefit. In the case of solar power, industrial revitalization is expected near the Solarsido complex in Haenam, Jeollanam-do, the largest domestic power generation complex, and the pace of technological development by related energy storage system (ESS) developers may accelerate.

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