Global Power Demand Surges, South Korea’s SMR Competitiveness Shines
The proliferation of artificial intelligence (AI) and electric vehicles (EVs) is triggering an unprecedented surge in electricity demand, making the securement of stable, carbon-neutral energy sources a global imperative. The Lawrence Berkeley National Laboratory projects U.S. data center electricity demand to increase from 176 terawatt-hours (TWh) in 2023 to between 325-580 TWh by 2028. RAND analysis suggests global AI data center power demand could reach 68 GW by 2027 and 327 GW by 2030. EVs, too, could account for up to 10% of global electricity demand by 2040. As small modular reactors (SMRs) emerge as a critical technology for this energy transition, South Korea is positioning itself as a frontrunner in this burgeoning market.
Major South Korean conglomerates are aggressively investing in SMR technology development and commercialization, reshaping the global competitive landscape. The recent passage of the ‘Special Act on the Promotion and Support of Small Modular Reactor Development’ by the National Assembly underscores South Korea’s strong commitment to meeting the surging electricity demand of the AI era, achieving carbon neutrality, and securing global SMR market leadership. This legislation mandates the government to establish a five-year ‘Basic Plan for SMR System Development,’ encompassing strategies for research, funding, and ecosystem creation.
South Korean SMR Strategy: Dual Focus on Domestic Innovation and Global Partnerships
South Korea is pursuing a two-pronged strategy, simultaneously developing its own SMR models and engaging in strategic investments and collaborations with leading international SMR developers. The ‘Innovative Small Modular Reactor (i-SMR),’ spearheaded by Korea Hydro & Nuclear Power (KHNP) and the Korea Atomic Energy Research Institute (KAERI), is a 170 MWe integral pressurized water reactor designed for both domestic use and export, currently seeking standard design approval. KEPCO Engineering & Construction (KEPCO E&C) is developing the 60 MWe block-type pressurized water reactor ‘BANDI-60,’ specialized for marine-based systems and remote communities. This diversification in domestic SMR designs allows South Korea to address varied market needs.
Concurrently, Korean companies are accelerating their global market penetration through close collaboration with leading SMR developers worldwide. Doosan Enerbility is a strategic partner for the deployment of U.S.-based NuScale Power’s SMRs and manufactures key equipment. Samsung C&T has made an equity investment in NuScale Power and established a strategic partnership for Engineering, Procurement, and Construction (EPC) across NuScale’s global projects. Samsung C&T is also expanding its SMR presence in Europe, Southeast Asia, and the Middle East through a strategic alliance with GE Vernova Hitachi Nuclear Energy. SK Group has invested $250 million in TerraPower, founded by Bill Gates, to commercialize Natrium SMRs. Hyundai Engineering & Construction is involved in a project with U.S.-based Holtec International to build two SMRs at the Palisades nuclear power plant site in Michigan, a project that could mark the world’s first SMR groundbreaking.
SMR Market Opportunities and South Korea’s Distinct Advantages
SMRs offer significant advantages over conventional large-scale reactors, including lower upfront capital investment, shorter construction times through factory fabrication, and greater siting flexibility. They can provide stable power supply to energy-intensive industrial facilities like AI data centers and enhance grid stability by complementing intermittent renewable energy sources. These technical and economic benefits underpin the projection that the SMR market will grow to $7.14 billion by 2030.
South Korea already possesses world-class expertise in large nuclear power plant construction and operation, providing a distinct advantage in expanding into the SMR sector. Doosan Enerbility’s reactor pressure vessel manufacturing capabilities and Hyundai E&C’s, and Samsung C&T’s global EPC prowess are optimally suited for the modular construction approach of SMRs. Furthermore, proactive government policy support and robust public-private collaboration are accelerating the development of the SMR ecosystem. The convergence of these factors positions South Korea not merely as a technology follower, but as an innovative solution provider in the global SMR market.
Conclusion: SMR Investment Opportunities and Future Outlook
South Korea’s SMR industry is emerging as a critical driver for addressing the explosive growth in electricity demand from the AI and EV eras and achieving carbon neutrality goals. The combined domestic and international SMR development and investment activities by Korean companies, coupled with strong government support, will further amplify the sector’s growth potential. Investors should closely monitor the technological advancements, overseas project awards, and regulatory approval processes of key players deeply involved in the SMR value chain, such as Doosan Enerbility, Samsung C&T, SK Group, and Hyundai E&C. As SMR technology commercialization becomes more tangible, the valuation of related companies will likely be re-evaluated. Significant investment opportunities are anticipated as the domestic SMR industrial ecosystem solidifies and Korean-designed SMR models begin their full-scale export to global markets.
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