Raising the Anchor: The Korea-US 'Nuclear Avengers'... Securing Practical Benefits Is Key

Government to Push for HLBC Restart Within the Year... First Time in 4 Years Since 2018
Top Priority Is 'Nuclear Power Export'...Strong Commitment from Both Korea and the US
Korea-US 'Nuclear Alliance' Gains Momentum...World-Class Competitiveness
Calls to Secure Practical Benefits... "Nuclear Power Design Sector Is Key"

Small-scale summit between the South Korean and U.S. leaders
(Seoul=Yonhap News) Photo by Seomyeongon = President Yoon Suk-yeol and U.S. President Joe Biden are holding a small-scale summit in the office of the Yongsan Presidential Office Building in Seoul on the 21st. 2022.5.21
seephoto@yna.co.kr
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＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

[Asia Economy Sejong=Reporter Lee Jun-hyung] As the government is pushing to hold the Korea-US High-Level Bilateral Commission on Nuclear Energy (HLBC) within this year, the clock on Korea-US nuclear cooperation, which stopped in 2018, is starting to turn again. HLBC is a permanent consultative body for Korea-US cooperation in the nuclear field. It was established according to the revised and enacted "Korea-US Nuclear Agreement" in 2015.

However, the cooperative projects promoted by Korea and the US centered on HLBC were suspended in 2018. This was because the intellectual property dispute between Korea Electric Power Corporation and the US nuclear power company Westinghouse, which surfaced in 2017, escalated into a diplomatic tension between the two countries. HLBC ultimately ceased to function after the 2nd plenary meeting held in 2018. It is also analyzed that the Moon Jae-in administration’s nuclear phase-out policy, which was intensified from 2017, is not unrelated to the suspension of HLBC.

In response, the new government has actively pushed for the reactivation of HLBC as a platform for Korea-US nuclear cooperation even before its inauguration. It judged that reactivating HLBC, which was suspended for four years due to the previous administration’s nuclear phase-out policy and other effects, would allow the government to express its determination to become a "nuclear power superpower" both domestically and internationally. The goal of exporting 10 nuclear reactors by 2030, as well as the plan to elevate the Korea-US alliance from a traditional military alliance to an economic and technological alliance, can also be strengthened.

Focus on Nuclear Reactor Exports... US Also Active

The top priority agenda of HLBC, which is entering its second term along with the new government, is "nuclear reactor exports." The background for the recent agreement between the Korea-US leaders to reactivate HLBC lies in the strong will of both governments regarding nuclear reactor exports. Initially, our government included "nuclear reactor exports" as a major national agenda. This is based on the analysis that exports are more effective than domestic construction to restore the domestic nuclear supply chain, which collapsed due to the nuclear phase-out over the past five years. In fact, the Shin Hanul Units 3 and 4, whose construction restart was confirmed under the new government, will only be able to break ground around 2025 after going through approval procedures such as environmental impact assessments and power development implementation plans.

The US is equally active in nuclear reactor exports. Since the Three Mile Island nuclear accident in Pennsylvania in 1979, the US has halted new nuclear reactor construction for over 40 years, losing its global competitiveness. On the other hand, Korea imported nuclear technology from the US and secured not only design technology such as the Korean Standard Nuclear Power Plant (APR-1400) but also construction and operational capabilities. In 2009, Korea confirmed its competitiveness in the global market by winning the contract for the Barakah nuclear power plant in the United Arab Emirates (UAE). From the US perspective, Korea, which has independent construction capabilities and has operated nuclear reactors accident-free for about 50 years, is the optimal partner to restore the faded status of the US as the "nuclear power pioneer."

With the reactivation of HLBC marking the start of the Korea-US "nuclear alliance," Korea will gain world-class competitiveness. The US still holds unparalleled technological prowess with major nuclear companies like Westinghouse. Diplomatic power, essential for nuclear reactor exports that have the nature of national competition, is also a factor that enhances US nuclear competitiveness. Adding Korea’s construction capabilities, which have been recognized for economic feasibility through the Barakah nuclear power plant, to this technology and diplomatic power, it is evaluated that Korea and the US can aim to seize the leadership of the nuclear power market currently dominated by China and Russia.

South Korean and U.S. Leaders Visit Aerospace Operations Command
(Pyeongtaek=Yonhap News) President Yoon Suk-yeol and U.S. President Joe Biden visited the Aerospace Operations Command (KAOC) at Osan Air Base together on the afternoon of the 22nd, encouraging the troops. 2022.5.22 [Provided by the Presidential Office. Redistribution and DB prohibited]
Photo by seephoto@yna.co.kr
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＜Copyright (c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

Excluding China and Russia in Europe... Must Secure Practical Benefits

Recently, "energy security" has emerged as a key issue in the nuclear power business, which is also an opportunity. In particular, the increased possibility of winning orders in the European market, which is strengthening economic sanctions against Russia, is a positive factor. Some nuclear construction countries such as the Czech Republic have already excluded Russia at the bidding stage for national security reasons. As Europe is reducing its dependence on Russia following the Ukraine crisis, it has judged that it cannot entrust national base power sources such as nuclear power to Russia. For similar reasons, the Czech Republic also excluded China from the bidding for the Dukovany nuclear power plant project.

However, there are concerns that the Korea-US nuclear alliance could become a "bitter disappointment." There is worry that Korea might only play the role of a subcontractor for the US in jointly promoting nuclear projects. Accordingly, there are calls to expedite the launch of the "Nuclear Export Strategy Promotion Team," which the government plans to establish within this year, to prepare for future negotiations.

Jung Dong-wook, president of the Korean Nuclear Society, said, "The US has a strategy to incorporate Korea into the nuclear supply chain led by itself," adding, "The key issue will be who takes the high value-added nuclear design sector."

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