South Korea Picks Sites for New Nuclear Power Projects

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

South Korea's Korea Hydro & Nuclear Power (KHNP) has selected Yeongdeok in North Gyeongsang Province for two new large-scale nuclear reactors and Gijang in Busan for a proposed small modular reactor (SMR).

South Korea is pushing forward with a number of new nuclear power projects as the country accelerates plans for ending its heavy reliance on imported fossil fuels for energy. Korea Hydro & Nuclear Power (KHNP), the country's largest electricity company, has selected Yeongdeok in North Gyeongsang Province for two large-scale nuclear reactors and Gijang in Busan for a small modular reactor (SMR) project after extensive evaluation of numerous sites. According to Industrial Info Resources data, there are 52 nuclear power-related projects in the country worth almost US$28 billion in investment. The selection comes at a time when South Korea has pledged a major shift to clean energy in an effort to end its reliance on fossil-fuel imports. 

"A stable power supply is essential for securing national competitiveness and ensuring a sustainable future for coming generations," stated the Site Selection Committee at KHNP. "We worked to identify the most suitable sites, giving top priority to the role of nuclear power as a reliable baseload energy source that supports the industrial ecosystem, while also taking regional coexistence and shared growth into consideration."

The Projects

Yeongdeok has been chosen to host two reactors rated at 1,400 megawatts (MW), using KHNP's APR+ (Advanced Power Reactor Plus) reactor technology. The Gijang SMR project will feature four 170-MW small reactors based on the Innovative Small Modular Reactor (i-SMR) design spearheaded by KHNP and the Korea Atomic Energy Research Institute (KAERI). i-SMR is based in an integrated pressurised water reactor type nuclear power plant that KHNP is aiming to get full approval for by 2028. KHNP claimed that compared to large reactors it will cut costs by two-thirds and can be constructed in half the time. 

South Korea's Energy Transition

South Korea is undergoing a major energy shift, accelerated by the global energy crisis. The country is heavily reliant on fossil fuels, most of which are imported. Gas and coal accounted for 55% of their energy mix in 2025. The country has pledged to triple its current renewable energy capacity from 37 gigawatts (GW) to 100 GW in the next four years, mostly with accelerated wind and solar power rollouts. At the same time, it has pledged to shut down 40 of 61 coal-fired power plants by 2040. 

Impact of the U.S.-Iran War

The new urgency behind the energy switch has been the U.S.-Iran conflict, which led to the closure of the vital fuel shipping route the Strait of Hormuz. This led to a 41% spike in imported gas prices for the country. According to Ember Research, if solar continues its recent growth rate and 14 GW of planned wind comes online, Korea is already on track for 92 GW by 2030. It stated: "South Korea is pairing its clean energy expansion with a decisive retreat from fossil fuels, operating under a roadmap to significantly reduce coal power from its energy mix by 2040. This transition extends directly to the heating sector, which represents roughly 48% of the country's final energy consumption. To decarbonize this space, the government is actively pushing to replace traditional gas-based heating with electric heat pumps and renewable district heating networks." Speaking earlier this year South Korea's President Lee Jae Myung said: "Our future will be at serious risk if we continue to rely on fossil fuels. The world is in turmoil over the energy crisis. To be honest, the situation is so serious that it has even kept me up at night. The immediate problem is grave enough, but the outlook ahead seems even more unstable - the situation is worse than expected. We need to transition to renewable energy."

All Power Utilities Will Be Merged 

At the same time, the government announced last month that it will merge its five power utilities back into one company, 25 years after they were split into separate entities. It claimed the move would reduce financial risks, strengthen the implementation of the energy transition and improve operational efficiency. A single entity will also help to cut the costs of buying thermal coal. It highlighted that at present the five state-run utilities procure coal independently and compete to secure the lowest-cost fuel supplies. 

Key Takeaways

• South Korea's Korea Hydro & Nuclear Power (KHNP) has selected Yeongdeok for two new large-scale nuclear reactors and Gijang for a proposed small modular reactor (SMR) plant. 
• The government is also backing a seismic energy shift, spurred on by the global fuel crisis, by committing to triple renewable energy to 100 GW by 2030.
• At the same time, it will shut 40 out of 61 coal-fired power plants by 2040.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).