[2022 National Audit] Moon Government's Nuclear Phase-Out Controversy Heats Up... Ruling Party "Nuclear Ecosystem Collapse" Opposition "Safety First"

21 Sanjajunggiwi National Audit Heated Debate
"Huge Losses from Nuclear Phase-Out" vs "Minimal Impact on Electricity Wholesale Prices"

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy attends the comprehensive audit of the Industry, Trade, Industry and Small and Medium Venture Business Committee held at the National Assembly in Yeouido, Seoul on the 21st, responding to questions from the committee members. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] At the comprehensive audit of the Ministry of Trade, Industry and Energy by the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee on the 21st, the Moon Jae-in administration’s energy policy centered on 'denuclearization' was once again brought into the spotlight.

The ruling party, the People Power Party, argued that the denuclearization policy caused the collapse of the nuclear power ecosystem and resulted in enormous loss costs. The main opposition party, the Democratic Party of Korea, countered that the early shutdown of Wolseong Unit 1 and the delay in operation of Shinhanul Units 1 and 2 had little impact comparable to the increase in electricity rates.

Kim Seong-won, a member of the People Power Party, pointed out, "A representative example of the losses suffered by the people due to government policy is denuclearization," adding, "Regardless of whether it is denuclearization or not, the biggest problem is that the (nuclear power) ecosystem has collapsed. Overseas nuclear power exports have also failed, and the nuclear power industry is on the verge of collapse."

Lee Cheol-gyu, from the same party, claimed that the cost of power loss caused by the delay in operation of Shinhanul Units 1 and 2 and the delay in the groundbreaking of Shinhanul Unit 3 would exceed 7 trillion won. Lee said, "If the nuclear power policy had proceeded as planned, the burden on the people would have been reduced accordingly," and criticized, "It should not be disparaged and vilified as a social evil or something harmful to the national economy."

On the other hand, Park Young-soon, a Democratic Party member, said the impact of the denuclearization policy on the System Marginal Price (SMP) is minimal, stating, "The closure of Wolseong Unit 1 has less than a 1% effect on the wholesale electricity price."

The Democratic Party also emphasized the risks of nuclear power. Yang Yi-won-young mentioned suspicions of radioactive leakage at the Wolseong nuclear power plant and stressed, "Nuclear power must be operated under conditions where safety is guaranteed."

The government’s 'delayed response' controversy regarding the U.S. Inflation Reduction Act (IRA) also heated up the audit session. In particular, the opposition parties criticized the government for inadequate response.

Hong Jeong-min, a Democratic Party member, called it "a diplomatic and trade disaster caused by belated, complacent, and hollow responses," and questioned, "Has the U.S. position changed favorably toward Korea, and is there a possibility of amending the law? Until when is it possible?"

Kim Han-jung, from the same party, asked Minister of Trade, Industry and Energy Lee Chang-yang, "When was the first time you reported the seriousness of this issue directly to the president?" and criticized, "President Yoon Seok-youl has not mentioned the unfairness of the Inflation Reduction Act or the electric vehicle issue even once in a month."

In response, Minister Lee said, "I think President Biden’s sending of a personal letter showed a willingness to resolve the issue," adding, "Since it is fundamentally a legal matter, it is not easy to resolve, but we will make every effort to minimize the damage to our companies."

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