Energy Policy
South Korea’s recent nuclear-energy policy is best described as conditional expansion
21 Aug 2026 · SuhngJoon Han
South Korea’s recent nuclear-energy policy is best described as conditional expansion: existing reactors will continue operating safely, while decisions on new large reactors and SMRs will be made through public and expert deliberation as part of the 12th Basic Plan for Electricity Supply and Demand. The number and sites of new reactors have not yet been finalized.
Overall policy direction
Continued operation of existing reactors
The government intends to use existing nuclear plants as important low-carbon power sources while electricity demand rises and emissions must be reduced.
Key elements include:
Continuing operation subject to safety requirements.
Coordinating reactor utilization with maintenance schedules.
Using nuclear power to support the baseload needs of AI data centers and semiconductor complexes.
Expanding renewables in parallel while maintaining system reliability.
Existing reactors are viewed as one of the fastest available sources of firm, low-carbon power because they do not require the long development period associated with new nuclear projects.
New nuclear plants remain undecided
The Ministry of Climate, Energy and Environment has said that it will not predetermine the number of new reactors. The decision will consider electricity demand, the generation mix, safety, and public opinion. Minister Kim Seong-hwan said in August 2026 that neither the inclusion of new nuclear plants nor their number had been finalized.
The issues under review include:
Construction of additional large reactors.
Deployment of small modular reactors (SMRs).
Sites and construction schedules for new reactors.
The possibility of supplying power to semiconductor clusters and AI data centers through nuclear-based or nuclear-supported systems.
Nuclear power in the 12th Basic Plan
The 12th Basic Plan is being redesigned to reflect the sharp increase in electricity demand associated with the government’s three megaprojects.
Government plan: Finalize the government proposal by October 2026.
Draft: Expected around September–October 2026.
Public deliberation: Expert and public consultations during August–September.
Final process: Review and reporting through the relevant government and parliamentary procedures.
The government estimates that semiconductor and AI megaprojects could create approximately 38 GW of additional demand, equivalent to about 260 TWh of annual electricity consumption. This has increased the need to redesign the roles of nuclear, renewable, LNG, ESS, and transmission infrastructure in the 2040 generation mix.
Nuclear-related project schedule
The following schedules have been mentioned in government materials and recent reports:
Reactor or technology Plan or target
Saeul Units 3 and 4 Target completion in 2026 and 2027
Shin-Hanul Units 3 and 4 Target completion in 2032 and 2033
SMRs A potential deployment target around 2035 has been discussed
Two new reactors in Yeongdeok Target completion dates around 2037 and 2038 have been discussed
Additional new reactors Number and timing remain undecided
The schedules for Saeul Units 3 and 4, Shin-Hanul Units 3 and 4, and the potential Yeongdeok units are policy or construction targets, not necessarily final commercial-operation dates. The ultimate scale of additional reactors and SMRs may change after the 12th Plan’s deliberation process.
SMR policy
SMRs are being considered as distributed, low-carbon power sources for large industrial complexes and data centers. Compared with conventional large reactors, SMRs may be built in smaller modules and potentially located closer to demand centers, subject to safety and regulatory requirements.
The government is considering SMRs for:
Stable baseload supply for AI data centers.
Distributed generation near industrial complexes.
Balancing variable renewable generation.
Potential future hydrogen production and industrial heat supply.
Reducing dependence on long-distance transmission.
However, SMRs still face uncertainties involving economics, licensing, spent-fuel management, safety, and commercialization schedules. They should therefore be viewed as a medium- to long-term option rather than the main solution for electricity demand emerging around 2030.
Why new nuclear is being considered
The main reason is the rapid increase in large, continuous electricity demand:
Semiconductor fabs require reliable power 24 hours a day.
AI data centers consume large quantities of electricity continuously.
Coal retirements will reduce existing firm-generation capacity.
Renewable power requires storage and flexibility to manage variability.
Reinforcing transmission from generation regions to metropolitan demand centers takes many years.
For these reasons, the government is considering nuclear power not as a substitute for renewables but as a firm, low-carbon source that can operate alongside renewables and ESS.
Constraints on nuclear expansion
Public acceptance
The government plans to decide on new nuclear plants through hearings, expert discussions, and public consultation rather than by announcing a predetermined number of reactors. Safety, radioactive waste, local acceptance, and costs are expected to remain highly contested issues.
Construction lead times
New large reactors require site selection, environmental reviews, licensing, engineering, and construction. They are therefore unlikely to solve the initial electricity needs of the Yongin Semiconductor Cluster, particularly around 2029. Existing nuclear capacity, LNG, renewables, and transmission expansion will be more important for near-term supply.
Transmission requirements
Even if new reactors are approved, power must still be transported from generation sites to demand centers. Transmission capacity between the eastern coastal region and the Seoul metropolitan area will remain a key constraint, with local acceptance and undergrounding costs as major issues.
Waste and decommissioning
Spent-fuel storage, decommissioning costs, and compensation for host communities will need to be addressed as part of any long-term nuclear expansion strategy.
Expected role in the generation mix
Power source Likely government role
Nuclear Stable operation of existing reactors; selective review of new large reactors and SMRs
Renewables Accelerated deployment toward 100 GW by 2030 and long-term clean-power expansion
LNG Initial supply, flexible generation, and industrial heat or steam
Coal Gradual reduction and phase-out by around 2040
ESS and pumped storage Renewable balancing and peak-demand response
Transmission grid Deliver eastern-coast and central-region power to the metropolitan area and industrial clusters
Implications for industry and investment
Approval of new reactors would benefit nuclear equipment, reactor components, construction, maintenance, and grid-connection businesses.
SMRs offer long-term growth potential but face greater commercialization, licensing, and economic risks than conventional reactors.
The government is likely to pursue a combined strategy involving nuclear, renewables, ESS, and transmission rather than relying on nuclear alone.
LNG generation may gain a larger role in the initial supply of the Yongin and Honam semiconductor clusters, particularly where industrial heat and steam are required.
The five KEPCO generation subsidiaries are likely to shift away from coal and toward renewables, ESS, hydrogen, and grid-flexibility investments.
Bottom line
South Korea’s recent nuclear policy is neither a finalized nuclear phase-out nor a fully confirmed nuclear-expansion program. It is a practical, conditional approach: existing reactors will be used, while new large reactors and SMRs will be assessed through public deliberation and the 12th Basic Plan.
In the short term, existing nuclear plants and LNG are expected to support reliability, while renewables and ESS expand rapidly. In the medium and long term, the decision on new large reactors and SMRs will be one of the most important factors shaping the 2040 generation mix and electricity supply for the Yongin semiconductor and AI data-center projects.