Power Crunch Driven by AI Sparks Nuclear U-Turn… $12 Trillion Mega Plant for Yeongdeok

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By Global Team

With the selection of Yeongdeok in Gyeongbuk as a candidate site for a new nuclear power plant confirmed, the nuclear construction project is expected to speed up. The photo shows Units 1 and 2 of the Saeul Nuclear Power Headquarters in Ulju County, Ulsan. (Provided by Korea Hydro & Nuclear Power)

The clock on new nuclear power construction, which had been stopped for 15 years, has started moving again. A new large-scale nuclear plant will be built in Yeongdeok, Gyeongbuk, and South Korea’s first commercial small modular reactor (SMR) will be built in Gijang, Busan.

The New Nuclear Power Plant Site Selection Evaluation Committee said on the 17th that it had finalized the candidate sites for the new reactors included in the 11th Basic Plan for Electricity Supply and Demand. The task was to determine where to build two large reactors and one SMR.

This marks the first confirmation of a new nuclear power plant site in 15 years, since Yeongdeok and Samcheok were selected as candidate locations in 2015. The committee was composed of outside experts in policy and humanities, environment, nuclear engineering, and geology-seismicity, and conducted an independent review for nearly a year.

◆ Yeongdeok 91 points, Gijang 87 points: public sentiment decided the outcome

The evaluation was decided strictly by scores. In the large reactor category, Yeongdeok County scored 91.01 points, beating Ulju County in Ulsan (82.63 points) by 8.38 points. In the SMR category, Gijang County scored 87.11 points, defeating Gyeongju (84.56 points) by 2.55 points.

The review was divided into four categories: site appropriateness, environmental impact, construction suitability, and public acceptance. Each category was worth 25 points, for a total of 100. The committee examined whether the land was suitable for a plant, what impact it would have on the surrounding environment, whether construction would be feasible, and how much local residents would accept it.

A closer look at the criteria shows the character of the evaluation. Factors included underground fault lines and seismic activity, the impact on marine ecosystems and the heated wastewater discharged by the plant, the cost of building transmission networks and preparing the site, as well as survey results of local residents and approval rates in local councils.

Public sentiment among residents was the deciding factor. Yeongdeok scored 23.74 points in public acceptance, far ahead of Ulju’s 19.63 points. Gijang also lagged behind Gyeongju in environmental impact and construction suitability, but gained the upper hand at the final stage by outperforming it in site appropriateness and resident survey results. The committee explained that residents living within about 5 kilometers of the reactors in both areas showed higher support than in the competing sites.

◆ A “U-turn” from phaseout to expansion, with the nuclear clock turned back on after 15 years

South Korea’s first commercial small modular reactor (SMR) will be built in Gijang, Busan. The photo shows Units 1 and 2 of the Shin-Gori Nuclear Power Plant in Gijang County, Busan. (Provided by Korea Hydro & Nuclear Power)
South Korea’s first commercial small modular reactor (SMR) will be built in Gijang, Busan. The photo shows Units 1 and 2 of the Shin-Gori Nuclear Power Plant in Gijang County, Busan. (Provided by Korea Hydro & Nuclear Power)

This decision is the result of a major shift in South Korea’s energy policy. It has been 10 years since a new nuclear plan was included in the electricity supply and demand basic plan, since the 7th plan in July 2015. In the meantime, new nuclear plants disappeared under the Moon Jae-in administration’s phaseout policy.

The direction changed when the Yoon Suk Yeol administration abandoned the phaseout stance and, in February last year, included construction of two new large reactors (2.8 GW) and one SMR (0.7 GW) in the 11th Basic Plan for Electricity Supply and Demand. Gigawatt (GW) is a unit indicating the size of power-generation facilities; a single large reactor typically has a capacity of about 1.4 GW.

What stands out is the U-turn by the Lee Jae Myung administration. Although it had leaned at the time of the presidential election toward “reducing nuclear power” by not building new reactors and relying on existing ones, it shifted after taking office and decided to push ahead with the new nuclear projects as planned.

The background is the sharp surge in electricity demand. Semiconductor fabs, artificial intelligence (AI) data centers, and electric vehicles are all consuming rapidly increasing amounts of power. The government expects that the Yongin semiconductor cluster alone will need more than 10 GW of electricity, equivalent to a quarter of the Seoul metropolitan area’s power demand.

The logic is that solar and wind power, which fluctuate according to weather, cannot by themselves satisfy the around-the-clock hunger of factories and data centers. In other words, nuclear power has been brought back as the baseload source that will provide stable support from the bottom up.

◆ Yeongdeok rises again after the pain of cancellation

The Yeongdeok site chosen for the large reactor has a long history. This area was designated as the planned site for the “Cheonji Nuclear Power Plant” during the Lee Myung-bak administration in 2012. Korea Hydro & Nuclear Power purchased about one-fifth of the total site and completed much of the geological and environmental surveys.

However, 92.7% of voters cast ballots against it in a civilian referendum in November 2015, and the project was completely scrapped after the Moon Jae-in administration declared a phaseout of nuclear power in 2017. In 2021, even the designation of the planned area was lifted. Yeongdeok County also had to repay 38 billion won in special support funds it had received in connection with the project, with interest added. The conflict over the site also left the village divided into two camps.

Eight years later, the atmosphere has changed. With population decline, depleted finances, and even major wildfire damage piling up, more people in the region are viewing nuclear power as a way to revive the area. A public survey in Yeongdeok earlier this year showed 86.18% in favor of hosting the plant, and the county council unanimously passed a resolution of consent.

Yeongdeok received high marks largely because of its strength as a “verified site.” Geological surveys, environmental reviews, and the site designation process had already been completed when the Cheonji project was being pursued. Its area is also 3.24 million square meters, more than three times the size required by the public call, and is considered large enough to accommodate two large reactors with room for more in the future.

◆ The SMR, a “mini reactor,” to be built in Gijang

Small modular reactor SMR (Photo = IAEA, International Atomic Energy Agency)
Small modular reactor SMR (Photo = IAEA, International Atomic Energy Agency)

The SMR to be built in Gijang is unfamiliar to many people. A small modular reactor refers to a reactor with a power output of 300 megawatts (MW) or less, roughly one-fifth the size of a large nuclear plant.

The biggest difference lies in how it is built. Core components such as the reactor, steam generator, and coolant pump are integrated into a single vessel, manufactured as a whole in a factory, and then assembled on site like Lego blocks. By reducing its size while incorporating safety systems internally, developers say it is designed to cool itself down even in the event of an accident.

Its uses are broad as well. While solar and wind power fluctuate with the weather, SMRs can serve as supplementary power to fill the gaps. Because they occupy less land and can be installed in places where transmission grids are hard to reach, they are also being discussed as distributed power sources that could be placed next to electricity-hungry AI data centers. More than 70 sites worldwide are involved in development, and South Korea is aiming to receive standard design approval for its innovative SMR (i-SMR) by 2028.

Gijang’s selection as a candidate site was influenced by its history. The area is home to the Gori Nuclear Power complex, the country’s largest, as well as research facilities of the Korea Atomic Energy Research Institute. With a concentration of nuclear personnel and infrastructure already in place, expectations are growing that it could become a base for demonstrating and industrializing South Korea’s first commercial SMR.

◆ Hurdles remaining before the first shovel: environmental review and nuclear waste

Site selection does not mean construction will begin immediately. A series of procedures still remain, including designation of a planned power development area, environmental impact assessment, power generation business licensing, approval of the implementation plan, and consultation with residents. Under the government’s target, construction of the large reactor would begin in 2031 and be completed in 2038, while the SMR would be completed in 2035. The large reactor construction alone is estimated to cost about 12 trillion won.

The biggest variable remains public acceptance. In Yeongdeok, opposition remains deeply rooted alongside support. Groups such as the “Yeongdeok Anti-Nuclear Power Plant Countywide Coalition” have demanded the cancellation of the 11th power supply and demand plan itself, citing the anti-nuclear public sentiment confirmed in the 2015 local referendum.

They point to the lessons of the Fukushima accident, the lack of a viable path for high-level radioactive waste, heated wastewater discharged into the sea, and the unpredictable risk of accidents. They also stress that South Korea’s nuclear density relative to its land area is among the highest in the world.

Supporters cite jobs, finances, and a stable power supply that could revitalize regions facing decline. Opponents emphasize safety, the environment, and the fact that once nuclear waste is introduced, it remains forever. Memories of villages split by repeated cycles of designation and cancellation have fueled fears that conflict could erupt again this time as well.

The committee was aware of this point, too. It asked Korea Hydro & Nuclear Power to sufficiently reflect, in its regional cooperation measures, the reasons for support and opposition identified in the public surveys, as well as suggested improvements.

The selection of new nuclear sites is a clear milestone showing that South Korea has once again embarked on a path of nuclear expansion. Industry’s appetite for electricity is growing ever larger, and society remains divided over what should satisfy that hunger.

How can stable power and safe living be balanced side by side? The nuclear plants to be built in Yeongdeok and Gijang place that old question before South Korean society once again.