Nuclear power-related projects escape R&D budget cut

While next year’s research and development (R&D) budget was significantly cut as the government tightened its purse strings, nuclear power-related projects turned out to be an exception.

Shin-Hanul nuclear reactor Unit 1 in Uljin, North Gyeongsang [KOREA HYDRO & NUCLEAR POWER]

While next year’s research and development (R&D) budget was significantly cut as the government tightened its purse strings, nuclear power-related projects turned out to be an exception.

Small modular reactor (SMR) R&D programs will get a major boost as new projects come in, and the government further ramps up its effort for nuclear exports.

Funds for the nuclear sector will be expanded across the board from financial support toward small- and mid-sized enterprises to nuclear decommissioning and radioactive waste management in 2024, according to the Ministry and Trade, Energy and Industry.

In particular, the R&D budget for SMR — a generally smaller reactor module touted to have greater scalability and siting flexibility than conventional reactors — got a major ramp-up from this year’s 3.9 billion won ($3 million) to 33.3 billion won.

Funds for nuclear decommissioning R&D programs were raised by 28.4 percent to 43.3 billion won. A new program to provide financial support with low interest rates for local nuclear companies will be set up with a budget of 100 billion won, along with other support measures including training programs.

The budget to support overseas nuclear sales activities will also get a 9.3 percent increase, while 25 billion won was allocated to provide smaller companies with export bond insurance.

The significant hikes came as the overall expenditure for R&D was cut by 16.6 percent, with President Yoon Suk Yeol demanding a full overhaul of research spending citing a corrupted “cartel” within academic circles.

“Much of the R&D budget has been cut, but SMR programs seem to have secured funds since the technology is considered a future game changer in the nuclear industry,” KAIST nuclear engineering professor at KAIST Yoon Jong-il said.

“To take the lead in the global market, three main tasks need to be tackled: R&D, regulatory reform and manufacturing technology,” Yoon added.

The government hopes to export 10 nuclear power plants by 2030 and win nuclear equipment projects worth 5 trillion won by 2027.

Meanwhile, the Yoon administration’s decision to slash R&D funds is facing backlash, particularly from government-funded research institutes.

“[The budget cut] undermines each research institute’s efforts to achieve its R&D goals and makes operations fundamentally difficult,” a union of scientific technology researchers said in a statement issued on Monday, stressing that “the country’s R&D capabilities will be significantly undermined in the long-term.”

BY JEONG JONG-HOON, SHIN HA-NEE [shin.hanee@joongang.co.kr]