South Korea and the United States must leverage nuclear cooperation to cut costs, boost energy security, accelerate decarbonization, and lead the global nuclear energy market.
The Energy Challenges Facing Both Nations
Both the United States and South Korea face significant yet distinct energy challenges. In the United States, rising electricity prices and an aging power grid are major issues. According to a report from the North American Electric Reliability Corporation (NERC), the country has struggled with grid instability, leading to unreliable power supplies. Aging nuclear plants exacerbate this problem, requiring expensive refurbishments to meet modern safety regulations. With energy demand surging due to energy-intensive sectors like AI and the reshoring of manufacturing, the United States must find ways to secure reliable and affordable energy supplies.
South Korea faces similar challenges but with its own complexities. The country’s heavy reliance on expensive LNG and renewable energy during its nuclear phase-out has led to high electricity costs and significant debt for its state-run utility, Korea Electric Power Corporation. Meanwhile, South Korea is working to meet its “2050 carbon neutrality” goal by increasing its renewable energy share, which has driven grid stabilization costs higher. For South Korea’s industrial sector, which relies heavily on electricity, rising energy prices have diminished its competitiveness in the global market. South Korea must find a reliable and affordable energy solution to address these challenges.
Both nations share a critical need for stable and affordable energy to support their industrial sectors and achieve their decarbonization goals. A nuclear energy collaboration between South Korea and the United States could address these issues. By leveraging each other’s strengths—South Korea’s efficient nuclear construction and the United States’s leadership in SMRs—the two nations can reduce costs, enhance energy security, and accelerate the transition to a low-carbon future.
Potential Areas in Nuclear Energy for Collaboration
Both nations share a common technical and regulatory foundation in pressurized water reactors (PWRs), enabling collaboration in the following areas:
1. Upgrading Equipment for Continued Operation of U.S. Large Nuclear Reactors
Many of the operating PWRs in the United States are aging, and their continued operation requires significant upgrades to meet modern safety regulations. However, refurbishing equipment using the U.S. domestic supply chain is both time-consuming and costly. South Korea, with its active nuclear parts supply chain, can provide the equipment more cost-effectively and in a timely manner. For example, replacing equipment to extend the operation of South Korea’s Kori 1 and Wolsong 1 reactors cost approximately $210 million and $400 million, respectively, as of 2014. Wolsong 1 required the replacement of its Calandria, similar to a reactor in a PWR, which contributed to the higher cost. However, these costs were significantly lower than similar operations in the United States. Also, South Korea’s nuclear operator, Korea Hydro & Nuclear Power (KHNP), has extensive experience in large-scale project management and quality control. By collaborating closely, the United States could reduce costs and improve the economics of nuclear power generation through continued operations.
2. Collaboration in Building New Large Nuclear Reactors in the United States
A comparison of nuclear power plant construction costs between the two nations shows that South Korea’s costs were only one-fifth of those in the United States. Recent data confirm this trend. The Vogtle 3 and 4 units experienced substantial cost overruns, with the initial cost doubling to $30 billion by 2024, accompanied by construction delays of around seven years. In contrast, South Korea’s Shin-Hanul 1 and 2 reactors were completed for approximately $7.1 billion as of 2024. However, labor regulations limiting weekly working hours to fifty-two have resulted in longer construction timelines, higher labor costs, and rising equipment prices, increasing the construction cost of nuclear power plants in South Korea by more than 30 percent. Despite this, South Korea’s nuclear construction costs remain less than one-third of those in the United States.
South Korea has adopted the APR1400 as its primary reactor model. This reactor is an enhanced version of the System 80+ model developed by Combustion Engineering (now Westinghouse). After receiving Design Certification from the U.S. Nuclear Regulatory Commission in August 2019, the APR1400 can be approved and begin construction in the United States in a relatively short timeframe. If Westinghouse and KHNP form a consortium to build the APR1400 in the United States, U.S. power utilities could secure large-scale nuclear reactors at about one-third the construction cost of the Vogtle reactors.
3. Collaboration in Building Small Modular Reactors (SMRs) in South Korea
The United States is leading the development of SMRs, with companies like NuScale already nearing commercialization. South Korea is also working on its own i-SMR technology but lags behind the United States in terms of development progress. According to the recently announced 11th Basic Plan for Electricity Supply, the first i-SMR unit is expected to be constructed by 2038. Given this timeline, the contribution of SMRs to carbon reduction will inevitably be limited. However, given its ambitious carbon reduction goals, South Korea urgently needs to replace aging coal-powered plants with cleaner energy sources like SMRs.
The United States could support South Korea by exporting its SMR technology and sharing its experiences in reviewing SMR safety through the U.S. Nuclear Regulatory Commission. Additionally, the U.S. Department of Energy could assist in applying SMR technology for the transition from coal-powered plants to nuclear power. Since South Korean companies like Doosan Enerbility are already manufacturing main components for U.S. SMRs, building SMRs in South Korea could be cost-effective.
Conclusion
Nuclear energy cooperation offers tangible benefits for both nations. The United States would reduce the costs of nuclear reactor construction and maintenance, thereby lowering the price of electricity generated from nuclear power. This would result in cheaper electricity for U.S. businesses and consumers. For South Korea, adopting advanced SMR technologies would allow the country to meet its carbon reduction goals without significant economic disruption. This collaboration model could be expanded to the global nuclear market, giving both nations a competitive edge in an industry where Russia and China are dominant players. The United States and South Korea, with their complementary strengths, are well-positioned to lead the global nuclear energy market together.
Joohyun Moon is a Professor of Energy Engineering at Dankook University. His research primarily focuses on advancing Radiological Emergency Preparedness through Big Data Analysis. Additionally, he collaborates with various organizations to address and resolve challenges related to societal resilience in the aftermath of natural and social disasters.
He serves as the President of the Board of Directors at the Institute for Korea Spent Nuclear Fuel, where he oversees the planning and evaluation of R&D projects on spent nuclear fuel management, including final disposal. He is also the Vice President of both the Korean Nuclear Society and the Korea Institute of Nuclear Materials Management.
From 2013 to 2015, he was a Program Manager for the Nuclear Energy R&D Program at the National Research Foundation. Additionally, he has served as a member of the Nuclear Safety Advisory Committee for the Nuclear Safety and Security Commission. He earned his Ph.D. in Nuclear Engineering from Seoul National University in 1996.
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