Nuclear Industry: "Delaying 'Daltalwonjeon' Is Too Late... Critical to Secure Projects for Survival" (Comprehensive)

"Even if Shin Hanul Units 3 and 4 construction resumes,
work is expected to start only after 2-3 years"

President-elect Yoon Suk-yeol visiting the site of the halted construction of Shin Hanul Units 3 and 4 in Uljin County, Gyeongsangbuk-do, on December 29 last year when he was the People Power Party candidate. At that time, President-elect Yoon announced nuclear power pledges, including a full review of the nuclear phase-out policy and the immediate resumption of construction of Shin Hanul Units 3 and 4. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok]

"'De-nuclear phase-out' is not a health supplement but an oxygen respirator. Without it, everyone dies." (CEO of Company A, a control rod manufacturer at Busan Nuclear Power Plant)

"I don't believe the next government's pro-nuclear stance will be as strong as that of the 'Park Geun-hye administration.' Just because it's 'endemic' (periodic outbreak of infectious diseases) doesn't mean 'COVID-19 is over,' does it?" (Director of Company B, a nuclear maintenance manufacturer in Changwon, Gyeongsangnam-do)

As the possibility of resuming construction of Shin Hanul Units 3 and 4, which was halted under the Moon Jae-in administration, increases, the nuclear industry unanimously expressed that it is not a situation to be relieved. This is due to concerns that there are many hurdles to overcome before construction can resume and that the shortage of work will continue for 2 to 3 years.

According to the nuclear industry on the 19th, the number of new nuclear-related contracts for Doosan Enerbility (formerly Doosan Heavy Industries) dropped by half from 2,786 in 2016 to 1,172 in 2020. During the same period, the number of contracted partner companies sharply decreased from 320 to 227. According to the "Nuclear Industry Status Survey" conducted by the Korea Nuclear Industry Association on 332 organizations, 75.3% of nuclear supply companies and public research institutions responded that their 2024 sales would remain at or below 2019 levels.

The industry expects that even if construction of Shin Hanul Units 3 and 4 resumes, work will not pick up until 2 to 3 years later, so they are currently fighting desperately to secure maintenance and repair work for existing nuclear power plants. In reality, they must quickly supply essential items such as routine maintenance and control rods to subsidiaries of Korea Electric Power Corporation and Doosan Enerbility, but the industry explains that it is difficult to endure with a 'zero' operation rate. Commercialization of Small Modular Reactors (SMRs) is out of the question, and many responded that skilled worker attrition and securing work related to the resumption of nuclear construction are like stories from another country. In short, they are not in a situation to properly enjoy the "good news" appearing in the media.

CEO A said, "Since delivering parts for Shin Kori Units 5 and 6 one and a half years ahead of schedule in June last year, the factory operation rate has been 'zero' for 10 months," and pointed out, "If Korea Hydro & Nuclear Power, which is responsible for the national energy supply chain, manages the essential technology and supports companies with about 1 to 2 billion KRW annually during the bidding process, it could revive the industrial ecosystem." Director B confessed, "The most urgent thing is volume (work orders). Only with volume can we replenish manpower and repay 1 billion KRW in bank loans." He added, "Although the political sphere says construction of Shin Hanul Units 3 and 4 will resume, the Ministry of Trade, Industry and Energy and KHNP must actually proceed with procedures such as site approval for private companies to prepare bids. Even if construction resumes immediately, the manufacturing plant in Changwon is expected to receive orders two years later, so until then, we must endure without work."

There are many reactions expressing frustration due to political confusion and delays in policy discussions. In particular, there are concerns that even if construction of Shin Hanul Units 3 and 4 resumes due to environmental impact assessments by the Ministry of Environment, it will take considerable time to recover sales. Another industry official said, "Article 32, Paragraph 1, Subparagraph 1 of the Environmental Impact Assessment Act stipulates that if the surrounding conditions have changed only slightly during the period when the project has not started, and the approval authority has consulted with the Minister of Environment, the request for re-consultation can be omitted." He added, "It is urgent to fully utilize such provisions to drastically reduce licensing procedures and promptly support companies' efforts to secure work."

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