S. Korea’s nuclear industry sees dramatic revival under Yoon administration

Korea Hydro & Nuclear Power headquarters. [Courtesy of KHNP]

South Korea’s nuclear industry is beginning to revive after a survival crisis due to the “nuclear phase-out” policy pursued by the previous Moon Jae-in administration. With the resumption of new nuclear construction and the continued operation of aging nuclear plants, Korean nuclear companies are witnessing a rapid increase in job opportunities. Particularly, the possibility of nuclear exports to overseas markets is bolstering the domestic nuclear industry, generating optimism for a reinvigorated phase and aiding in the recovery of the manufacturing sector.

According to sources on Monday, the total value of contracts signed between Korea Hydro & Nuclear Power (KHNP) and its contactors during the first half of this year reached a 5.43 trillion won ($4.05 billion). This amount represents an almost 50 percent increase compared to the annual contract value of 3.65 trillion won for the latter half of 2021 during the Moon administration. It is nearly three times more than the contract value of the first half of that year. Additionally, the number of KHNP vendors has grown from 1,665 in 2021 to 1,744 in the first half of this year. The revenues of these companies are also on the rise. The combined revenue based on the top 330 companies increased by 12 percent from 99.2 trillion won in 2021 to 110.9 trillion won last year. The industry is anticipating even further growth in revenue this year.

This revival in the nuclear industry has the potential to positively impact the sluggish domestic manufacturing sector by contributing to the creation of quality jobs.

The nuclear phase-out policy pursued by the Moon administration had pushed the domestic nuclear industry to the brink of collapse. Doosan Enerbility, the only company in Korea that manufactures key equipment for nuclear power plants, faced severe financial difficulties from 2017 to 2020, incurring annual losses in the billions of won. The company experienced plummeting factory utilization rates and order backlogs, eventually leading to workforce restructuring.