Kim Jeong-gwan, Minister of Industry, "We must promote 2 new nuclear power plants and SMR"

[Financial News] Minister of Trade, Industry and Energy Kim Jeong-gwan stated, "We must promote 2 new large nuclear power plants and small modular reactors (SMR)" and added, "In the process of public discussion, as the Minister of Industry, I have no choice but to say that nuclear power is necessary in terms of energy prices and stable power supply." 
 According to the Ministry of Industry on the 17th, Minister Kim said at a press conference held at Baujeongwon in Sejong City on the 16th, "It is not necessary immediately, but we must prepare for the power demand in 2035-2036," and explained, "Even if we go through a national consensus and public discussion process, the necessity will eventually be confirmed in terms of power demand forecasts." 
 The 11th Basic Plan for Electricity Supply and Demand, confirmed last February, includes the introduction of a total of 2.8GW of new nuclear power plants and 0.7GW of Korean-style SMR by 2037-2038.
 Previously, Minister of Environment Kim Seong-hwan stated that when the Ministry of Climate Environment and Energy is launched, they will reconsider the construction of 2 new nuclear power plants and 1 SMR included in the 11th Basic Plan for Electricity Supply and Demand through public discussion.
 President Lee Jae-myung also recently expressed a negative view on the construction of new nuclear power plants at a press conference, saying, "It takes 15 years for nuclear power to actually operate, and there is no site to build it."
 While the President and the Ministry of Environment emphasized caution, the Minister of Industry directly emphasized the need to expand nuclear power in terms of stable power supply and industrial competitiveness.
 Minister Kim emphasized, "Industrial electricity rates have risen by nearly 60% in recent years. It is 1.3 to 1.4 times more expensive than in China. The same goes for the United States," adding, "We need to be mindful of the fact that Korea's competing companies are in China and the United States."
 He also expressed regret over the transfer of energy policy to the Ministry of Climate Environment and Energy due to government reorganization.
 Minister Kim said, "From the perspective of someone from the energy sector, it is regrettable and disappointing," adding, "I think industry and energy should go organically like one body, one brother." However, he emphasized the consistency of nuclear power industry policy, saying, "Nuclear power export is related to 400-500 related companies, so it is appropriate for the Ministry of Industry to handle it."
 Regarding the investigation related to the contract signed by Korea Electric Power Corporation and Korea Hydro & Nuclear Power with Westinghouse in the United States in January this year, he stated, "We are looking into whether the procedures were in accordance with laws and regulations during the negotiation process."
 He continued, "If we have to pay $1 billion in royalties, the issue is whether we will remain in the domestic business without challenging the market worth more than $10 billion, or whether we will enter the global market despite the costs to enhance the vitality of domestic companies."


aber@fnnews.com Park Ji-young Reporter