Yoon Administration's SMR Support... Renewed Attention on Doosan's Business Portfolio

Acceleration of Chinwonjeon Policy
Chairman Park Jung-won Actively Oversees Site
Korean Private Energy Company
Role as Supply Chain Hub

Doosan Group Chairman Park Jung-won is checking the business status while looking at a nuclear power plant model in front of the reactor head at Doosan Enerbility's nuclear power plant in Changwon, Gyeongnam, on the 15th of last month. Photo by Doosan Group

[Asia Economy Reporter Choi Seoyoon] As the Yoon Seok-yeol administration, launched this year, accelerates its pro-nuclear power policy, the business portfolio of Doosan Enerbility, a leading domestic nuclear power company, is gaining attention. Park Jung-won, chairman of Doosan Group, who rarely appeared in official settings, even visited Doosan Enerbility’s nuclear power plant to personally oversee the business.

On the 14th, President Yoon Seok-yeol stated, "We will further accelerate the restoration of the nuclear power ecosystem," announcing plans to increase support for the nuclear power industry to around 2 trillion won next year and invest 400 billion won in the development of Small Modular Reactors (SMR). He made these remarks at the completion ceremony of Shin Hanul Unit 1, where Doosan Enerbility supplied main equipment such as reactors, steam generators, and coolant pumps. Having experienced a crisis under creditor management, Doosan Enerbility is now attracting market attention as pro-nuclear power emerges as a key keyword of the Yoon administration. An industry insider explained, "The driving force behind Doosan Group’s stock price, which focuses on nuclear power and power generation businesses, is ‘favorable policies.’ Even if they secure orders worth over 1 trillion won, the stock price does not fluctuate, but it soars when policies favorable to the business are announced."

Although gaining attention for nuclear power under the current administration, Doosan Enerbility is a comprehensive energy company. When the Yoon administration mentioned resuming construction of Shin Hanul Units 3 and 4 early in its term, Doosan Enerbility announced its intention to devote efforts across all business areas, including nuclear power, offshore wind power, and gas turbines.

Doosan Enerbility’s business portfolio is so diverse that it is regarded as a supply chain hub for Korean private energy companies. During the period of the nuclear phase-out policy, it expanded its business areas to include not only SMR but also renewable energy sectors such as liquefied natural gas (LNG), offshore wind power, and gas turbines. This year, Doosan Enerbility plans to install an LNG gas turbine at the West Power Gimpo combined heat and power plant for pilot operation. In the offshore wind sector, it signed a contract for equipment supply and long-term maintenance for the 100MW Jeju Hallim offshore wind power complex and is preparing for the selection of the preferred operator for the Southwest Sea offshore wind power complex.

In the SMR field mentioned by President Yoon, Doosan Enerbility is a domestic leader. Since 2019, it has been growing its business by investing $44 million in the U.S. SMR company NuScale Power, the first domestic company to do so, along with Whale Investment and Industrial Bank of Korea. Currently, it is also considering equity investment in X-energy, one of the top three U.S. SMR companies alongside NuScale Power and TerraPower. A Doosan Enerbility official said, "It is under review, but nothing has been finalized."

As a manufacturer of power generation equipment, Doosan Enerbility is also at the center of the supply chain. Companies from different industries, such as Samsung C&T (Engineering, Procurement, and Construction EPC) and GS Energy (Asian development projects), announced earlier this year that they are collaborating with Doosan Enerbility, which holds the original technology for equipment manufacturing. Even during the previous administration, which advocated nuclear phase-out, Doosan Enerbility did not neglect research and development. The ratio of R&D expenses to sales increased from 3.46% in 2016, just before the previous administration took office, to 3.82% as of the end of last year. Last month, Doosan Group Chairman Park visited Doosan Enerbility’s headquarters in Changwon, Gyeongnam, inspecting sites including nuclear and wind power projects such as SMR, stating, "As major domestic and international nuclear power projects become visible, we must be fully prepared."

Meanwhile, Doosan Enerbility’s order target for this year is 7.9133 trillion won, a 24.8% increase from the previous year. As of the third quarter cumulative total this year, it recorded 4.7901 trillion won and has already secured 6.9 trillion won. Operating profit for next year is expected to grow 11% from this year to 1.092 trillion won.

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