Korea Atomic Industrial Forum Welcomes Designation of SMR as National Strategic Technology

Financial and Tax Burdens Expected to Ease for SMR Development Companies

Small modular reactors (SMRs) are attracting attention as next-generation energy sources. Unlike large reactors that generate outputs exceeding 1000MW, SMRs produce less than 300MW of output and are manufactured in module forms by integrating major components. They are safer than traditional large nuclear power plants, require less installation space, and have simpler design and operation procedures, reducing the likelihood of malfunctions. Amidst the explosive expansion of AI technology and the widespread adoption of electric vehicles causing a surge in global electricity demand, South Korea hopes to secure a leading position in the global market through the development of Korean-style SMR technology. The photo shows personnel busily moving at the Innovative Small Modular Reactor Technology Development Project Group in Yuseong District, Daejeon. Photo by Jin-Hyung Kang

The Korea Atomic Industrial Forum (President Kim Hoecheon), which represents 561 domestic companies affiliated with the nuclear power industry, issued a statement on August 4 fully welcoming the government's designation of next-generation nuclear power (SMR) as a national strategic technology.

In the "2026 Tax Reform Plan" announced by the government on August 4, the scope of support for existing national strategic technologies was expanded to include the "future energy" sector, and explicit tax credits were provided for investments in SMR-related technologies and facilities.

Until now, the domestic nuclear industry has consistently requested the government to introduce proactive investment incentives such as tax reductions, stressing that, unlike conventional large-scale nuclear plants, SMRs are based on modularization and factory manufacturing, which increases the burden on companies for initial R&D and facility investment.

In its statement, the nuclear power industry noted, "This designation of SMRs as a national strategic technology will provide a stable foundation for domestic companies to invest, enhance technological capabilities, and simultaneously create a supply chain for SMR equipment and a robust industrial ecosystem. It will serve as a solid base for Korea to establish itself as a 'global leader in SMRs.' Furthermore, the expanded tax support is expected to significantly alleviate the financial and tax burdens on companies involved in the development, demonstration, manufacturing infrastructure, and equipment production for domestic SMR technologies."

No Baeksik, Vice President of the Korea Atomic Industrial Forum, said, "We deeply appreciate the government's bold determination and policy commitment to designate and support SMRs as a national strategic technology. With this designation as a catalyst, we will focus our industry-wide capabilities not only on building the domestic SMR ecosystem early but also on securing a leading position in the global SMR market."

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