Government to Foster Next-Generation SMRs as a National Strategy... Comprehensive Support for Nuclear Fuel, Demonstration, and Special Zones

Fostering Specialist Public-Private Ventures to Capture the 2030s Market
Promoting Localization of Defense Semiconductors

The government is moving in earnest to gain an early foothold in the next-generation Small Modular Reactor (SMR) market, which is expected to fully blossom in the 2030s. This move aims to foster next-generation energy sources as a national strategic industry to respond to the rapidly rising electricity demand in the age of artificial intelligence (AI).

The government plans to support the entire lifecycle—from fostering specialist public-private joint ventures, securing the nuclear fuel supply chain, building demonstration infrastructure, to designating SMR special zones—in order to accelerate the early commercialization of next-generation SMRs.

Behind the banner expressing hope for attracting SMR to Gijang-gun, Busan, which is hung along the roadside near Sinpyeong Village Hall in Gijang-gun after Korea Hydro & Nuclear Power confirmed two large nuclear power plants in Yeongdeok-gun, Gyeongbuk, and one SMR in Gijang-gun as candidate sites for new nuclear plant construction, are Kori Units 1, 2, 3, and 4. Photo by Yonhap News Agency

On July 23, the Ministry of Science and ICT announced that Deputy Prime Minister and Minister of Science and ICT, Hoongoon Bae, presided over the 11th Science and Technology Ministers' Meeting at the Government Complex Seoul and discussed the direction for fostering non-light water-based next-generation SMRs, among other topics.

This strategy focuses on nurturing non-light water reactor next-generation technologies—such as high-temperature gas-cooled reactors, molten salt reactors, and sodium-cooled fast reactors—as core national strategic technologies, moving beyond the conventional light water SMRs. The government intends to establish a comprehensive support system across all agencies, centering on demand creation, strengthening supply capabilities, regulatory improvements, and expanding the industrial ecosystem.

From Nuclear Fuel to Demonstration and Special Zones... Supporting the Entire Lifecycle of Next-Generation SMRs

First, the government will work with the private sector to develop business models tailored to each reactor type, and foster specialist commercialization enterprises by launching Special Purpose Companies (SPCs) with joint investment from the private and public sectors. From the initial stages of technology development, an intellectual property management framework will be established, and the government will also support companies’ overseas market entry and technology exports.

A complete supply chain from research and development, manufacturing, demonstration, to nuclear fuel will be built. The government will promote research and development–commercialization linkage projects with early private sector participation and expand support for developing next-generation SMR-specialized manufacturing technologies and key equipment production.

To quickly secure licensing-required demonstration data, sites such as the Munmu Daewang Science Research Center in Gyeongju and digital twin technology will be leveraged. Large research facilities and equipment will be concentrated to create a foundation for supporting next-generation SMR development and testing.

Deputy Prime Minister and Minister of Science and ICT, Background Hoon, is chairing the '11th Ministerial Meeting on Science and Technology' at the main video conference room in the Government Seoul Office in Jongno-gu, Seoul on the morning of the 23rd. Provided by the Ministry of Science and ICT

Securing the nuclear fuel supply chain is also a key challenge. To address uncertainties in the supply of High-Assay Low-Enriched Uranium (HALEU) used in next-generation SMRs, the government will establish nuclear fuel cooperation systems with countries such as the United States and the United Kingdom, and secure the technology and infrastructure needed to manufacture finished nuclear fuel domestically. The government will also promote the establishment of nuclear fuel self-sufficiency through the recycling of spent nuclear fuel using the pyroprocessing method.

Under the SMR Special Act, which will come into effect on September 11, the government will form the "SMR System Development Promotion Committee" and draw up a basic plan for SMR development by the first half of next year. Efforts will also be made to identify and improve laws and systems that hinder the multifunctional use of SMRs—such as for heat supply and marine propulsion—and to formulate plans to foster SMR special zones that concentrate the capabilities of industry, academia, and research institutes.

At the meeting, strategies for domesticating defense semiconductors and developing the industrial ecosystem were also discussed. The government plans to generate stable demand based on weapons systems procurement plans, and broaden the application of domestically produced semiconductors—tested and proven for reliability under government leadership—to weapons systems.

Existing public and private semiconductor production facilities will be utilized to secure the manufacturing base for defense semiconductors, and public-private joint manufacturing facilities will be established to develop production and mass manufacturing technologies. Plans are also in place to designate and foster defense semiconductor companies, develop specialist talent, and build domestic and international cooperation networks.

Deputy Prime Minister Paik Kyunghoon stated, “As the AI revolution reshapes the global economy and industry, we will secure overwhelming competitiveness in semiconductors, AI data centers, and physical AI sectors,” adding, “I urge all relevant ministries and agencies to actively cooperate and take concrete action so that the public can truly feel these changes.”

This content was produced with the assistance of AI translation services.