Taking Advantage of 'Nuclear Phase-Out,' Russia and China Control 80%... "Strengthening the Korea-US Nuclear Alliance"

FKI Report on 'Korea-US Civil Nuclear Cooperation Plan'
"Joint Entry into Third Countries for SMRs, Establishment of Fuel Supply Chain"

While free countries such as South Korea, Japan, and Germany have been pursuing 'nuclear phase-out' policies, it has been revealed that Russia and China have come to dominate nearly 80% of the global nuclear power plant market. There are calls to build a small modular reactor (SMR) supply chain together with the United States to reduce dependence on Russia and China.

On the 3rd, the Federation of Korean Industries (FKI) released a report titled 'Korea-US Private Nuclear Cooperation Plan,' commissioned to Park Sang-gil, a senior advisor at the law firm Bae, Kim & Lee LLC.

The report stated that as of last year, Russia's share of exported nuclear power plants was 67.6%. Of the 34 export nuclear reactors being built in 13 countries, 23 are Russian-made. China and South Korea accounted for 4 reactors (11.8%), and France followed with 3 reactors (8.3%). The combined market share of Russia and China reaches 79.4%.

While free countries like South Korea implemented nuclear phase-out policies, Russia and China pursued nuclear export policies centered on state-owned enterprises. Russia's state-owned company Rosatom provides nuclear power plant construction, financial support, uranium enrichment, operation, and maintenance services all at once to export countries. Rosatom is understood to have direct or indirect relationships with 43 countries.

China's three major state-owned enterprises CNNC (China National Nuclear Corporation), CGN (China General Nuclear Power Group), and SPIC (State Power Investment Corporation) lead nuclear power plant sales. China recently exported its self-developed reactor, the Hualong One, to Argentina. This marks achievements in South America following Pakistan. China has also signed a uranium agreement with Kazakhstan, establishing a stable nuclear fuel supply chain. Kazakhstan holds 15% of the world's uranium reserves and 45% of production.

The report noted, "China emerged as a rising power in the nuclear export market after the 2011 Fukushima accident in Japan," adding, "This period coincides with the time when export capabilities of free world nuclear power leaders such as South Korea, Japan, and Germany were significantly damaged due to nuclear phase-out policies."

Chinese President Xi Jinping (left) and Russian President Vladimir Putin are shaking hands after signing a joint statement following a summit at the Kremlin Palace in Moscow, Russia, on March 21 (local time).
[Image source=Yonhap News]

The report stated that with the United States recently accelerating exports of advanced nuclear power plants such as SMRs, South Korea has an opportunity to strengthen supply chain cooperation.

It recommended creating policies to complement the U.S. 'FIRST (Foundational Infrastructure For Responsible Use of SMR Technology) program,' which has been in effect since last year. The FIRST program supports initial infrastructure projects for SMRs in 10 new nuclear power importing countries, including Ukraine. South Korea announced in May last year that it would support the FIRST program alongside Japan and Canada.

The report suggested that South Korea should establish a program tentatively called 'SECOND' (Supply Chain, Engineering, Construction, Operation for Nuclear Development) to jointly pursue SMR export projects with the United States. It advised referring to Japan's 'WECAN (Winning an Edge through Cooperation in Advanced Nuclear)' program, which has been in operation since October last year. WECAN is a feasibility study project for SMR introduction conducted by Japan in cooperation with the U.S., and it has been operated in Ghana, Africa.

The report also emphasized the need to jointly promote the establishment of an SMR fuel supply chain for HALEU (High-Assay Low-Enriched Uranium) with the United States. HALEU refers to high-purity, low-enriched uranium essential for SMR development.

The U.S. currently relies entirely on Rosatom subsidiary TENEX for HALEU. To increase HALEU self-sufficiency, the U.S. is expanding domestic production capacity through measures such as the Inflation Reduction Act (IRA). South Korea does not have the authority to produce nuclear fuel at the enrichment levels suitable for HALEU. Therefore, if Korean companies participate in the construction of HALEU enrichment facilities in the U.S. through equity investment or EPC (Engineering, Procurement, and Construction) contracts, they can simultaneously gain both justification and practical benefits by contributing to the U.S. HALEU supply.

Choo Kwang-ho, head of the Economic and Industrial Headquarters at FKI, said, "The recent Korea-US summit has opened the door for cooperation between Korean energy and construction companies and innovative U.S. SMR companies," adding, "As the U.S. is expected to fully launch SMR cooperation with its allies, South Korea must prepare an action plan that secures both practical benefits and justification."

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