Heesu Lee, Bloomberg News

SEOUL
EnergiesNet.com 09 02 2022

South Korean President Yoon Suk Yeol’s push for nuclear energy has boosted shares of atomic power-related firms. 

Suppliers of nuclear reactor equipment and components including Kepco Engineering & Construction Co. and Korea Electronic Power Industrial Development Co. rose about 10% last month. They outpaced gains in the nation’s benchmark Kospi index, which advanced less than 1%. 

South Korea is seeing a nuclear renaissance as President Yoon, who took office in May, revives the role of atomic power to overtake coal as the main source of electricity to help meet the country’s climate targets. The new administration has proposed that nuclear account for about a third of total generation, while pledging to be a major exporter of equipment and technology.

“As one of the world’s most prominent nuclear energy nations, Korean atomic stocks will remain attractive as electrification is driving the role of atomic power globally,” Shin Jin-ho, co-chief executive officer at Midas International Asset Management Ltd., said by phone. “The shares will be supported by the local demand to build more plants, as well as the country’s push to build reactors abroad.”

The surge also comes after state-run Korea Hydro & Nuclear Power Co. secured a 3 trillion won ($2.2 billion) order to supply equipment and materials for the construction of nuclear plants in Egypt’s El Dabaa region. The Asian nation, which aims to build 10 reactors abroad by 2030, is working on exporting units to countries including Saudi Arabia, Poland and the Czech Republic. 

South Korea currently operates 24 reactors with 23.3 gigawatts of installed capacity and plans to build four more by 2030. It’s also seeking to extend the life of 10 older units to bolster its effort to cut emissions by 40% from 2018 levels by the end of the decade. 

bloomberg.com 09 31 08 2022