Increasing Work Supply and Tax Benefits for Large Nuclear Power Plants: "Complete Restoration of the Nuclear Power Ecosystem"

The government has decided to provide companies with large-scale nuclear power plant manufacturing technology with tax reduction benefits of up to 18% on facility investments going forward. This is in line with the government's decision to newly include large-scale nuclear power plant manufacturing technology in the tax credit targets for the nuclear power sector under the Restriction of Special Taxation Act to achieve a 'complete restoration of the nuclear power ecosystem.'

원본보기 아이콘

On the 22nd, the government held a public discussion forum titled 'Revitalizing the Nuclear Power Industry, Vibrant Changwon and Gyeongnam' at the Gyeongnam Provincial Government Office in Changwon City.

At the forum, An Deok-geun, Minister of Trade, Industry and Energy, reported on efforts and achievements in normalizing nuclear power policies and presented specific plans to leap forward as a leading nuclear power nation through qualitative advancement beyond just normalizing the nuclear power industry. Minister An stated, "As a result of a series of efforts, investments in the nuclear power industry, which had decreased to 140 billion KRW in 2021, increased to 250 billion KRW in 2022. Key ecosystem indicators such as sales, investment, employment, and enrollment in related university and graduate programs are all showing clear improvements." He added, "In particular, nuclear power equipment exports have achieved results more than six times higher in less than two years compared to the total amount over the previous five years of the last administration."

Shin Hanul Units 1 and 2 Overview (Reference Photo)

원본보기 아이콘

First, the government views it as important to inject seed money into new investments by the nuclear power industry, which had been stagnant during the phase-out period, to strengthen the warmth of the nuclear power ecosystem. Accordingly, it plans to significantly expand the tax credit for the nuclear power sector under the Restriction of Special Taxation Act. Specifically, in addition to the current tax credit targets under the Act that include 'large-scale nuclear power plants and small modular reactors (SMR)' design technology and part of SMR manufacturing technology within new growth and source technologies, 'large-scale nuclear power plant manufacturing technology' will be newly added. Furthermore, by expanding the scope of SMR manufacturing technology, the government aims to enhance the investment capacity of nuclear power equipment companies.

The supply of nuclear power work orders will also increase. Following 2.4 trillion KRW in 2022 and 3 trillion KRW last year, the scale of nuclear power work orders supplied will be expanded to 3.3 trillion KRW this year. Additionally, measures will be implemented to resolve difficulties faced by nuclear power companies that have secured contracts but have not yet received payments.

Changwon will be developed as an SMR hub. Changwon holds special significance in the nuclear industry. Since Korea Heavy Industries & Construction (now Doosan Enerbility) moved into the Changwon General Machinery Complex in 1982, the first domestically produced main equipment for nuclear power plants was developed in Changwon. The Changwon National Industrial Complex surpassed 10 trillion KRW in production value in 1992 through the manufacturing of main equipment for Hanbit Units 3 and 4, and to this day, all main equipment for domestic nuclear power plants is produced in Changwon.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.