Korea's export competitiveness hinges on reactor employment: energy minister

[Source: Ministry of Trade, Industry and Energy]

South Korea must make most of its strength in nuclear reactors to fight challenges from inflation and energy crisis to sustain export competitiveness, according to trade, industry and energy minister.

The economy heavily reliant on imports for fuel sourcing is bearing the double-whammy shock of inflation and energy crisis, industry minister Lee Chang-yang during a press conference on Tuesday. In the first half of this year, Korea’s trade balance delivered the largest-ever six-month deficit of $10.3 billion as import cost from strong commodity prices and weak Korean won overwhelmed record half-year exports.

“We must make most of reactors to sustain export competitiveness,” he said.

His comment follows the government announcement to resume with suspended construction of reactors and fully operate existing reactors to raise power sourcing from reactors to 30 percent in a U-turn from the former government which aimed to phase out from nuclear power by cancelling new construction and retiring aged ones.

To fend off stagflation risk, enhancing productivity is most important, he said.

The government is studying tax breaks for companies with bold capex plans to help raise productivity.

“To boost private investment, the government is preparing tax benefits and deregulations. As part of that, regulations on chemicals will soon be eased,” he hinted.

Lee recently visited Czech Republic and Poland to promote Korea’s technological capabilities in nuclear energy and seek for new business opportunities.

“It is hard to go into details, but I can say Korea is highly rated for its building, maintenance and operation capacity in reactors,” Lee said.

The government this month will unveil roadmap on chip, battery, display, AI, robotics industry.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]