Focused Support for 100 'Independent Nuclear Export SMEs'... 2 Billion KRW Support per Company over 5 Years

Announcement of the 'First Step Export Program for Small and Medium Nuclear Power Companies'

The government is set to actively foster small and medium-sized enterprises (SMEs) and mid-sized companies capable of independent exports without relying on nuclear power public enterprises. The goal is to nurture 100 independent export companies by 2027.

The Ministry of Trade, Industry and Energy announced on the 11th that it will launch the "First Step for Nuclear Power SMEs and Mid-sized Companies Export" program, which focuses on supporting the first exports of nuclear power SMEs and mid-sized companies.

According to the ministry, although global demand for nuclear power facilities is increasing due to new nuclear power plant construction and extended operation, major countries have weakened manufacturing capabilities because of past nuclear power construction halts, opening opportunities for Korean companies to enter the global supply chain. However, in the past five years (2017?2021), nuclear power export contracts totaled 143 cases worth approximately $530 million. Most export methods involve subcontracting projects won by public enterprises, with independent exports by SMEs accounting for only 9% of the total number of cases.

To overcome this situation, the government established the "Nuclear Power Equipment Export Activation Plan" in March, proposing a two-track strategy (joint entry and independent export) as a solution to expand joint entry between nuclear power public enterprises and partner companies while fostering nuclear power equipment export companies that do not rely on public enterprise orders.

As a follow-up measure according to the strategy, the Ministry of Trade, Industry and Energy announced the nuclear power SMEs and mid-sized companies export first step program today. Promising companies with no export experience but export potential will be selected and supported intensively throughout all export stages. Based on a comprehensive evaluation of technological capability, export readiness, and commitment, 10 companies (tentative) will be selected for support in 2023, with plans to expand to a cumulative total of 60 companies by 2027.

An official from the ministry explained, "This program differs from existing projects as it offers a comprehensive package of 30 export support projects previously operated individually by various institutions, and it is expected to have a significant support effect."

The program is closely supported by five organizations: the Korea Nuclear Export Industry Association, Korea Hydro & Nuclear Power, Korea Trade-Investment Promotion Agency, Nuclear Cooperation Foundation, and Korea Trade Insurance Corporation, covering market research, export strategy establishment, quality certification acquisition, marketing, contract signing, and delivery. Through expert consulting, an optimal support portfolio will be composed from among 30 projects considering each company's circumstances. The maximum support per company is 400 million KRW annually and 2 billion KRW over five years (excluding financial support). The ministry plans to expand participating support institutions and broaden the scope of support in the future.

Lee Seung-ryeol, Director of the Nuclear Industry Policy Bureau at the Ministry of Trade, Industry and Energy, said, "Until now, various institutions have operated diverse support systems individually, which had some limitations in leading to nuclear power equipment export achievements. Taking this opportunity to establish the new support program, the government and related organizations will join forces to do their best to achieve 100 nuclear power equipment export companies by 2027."

(Photo) [Image source=Yonhap News]

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