KRW 161 Trillion Korean Nuclear Project Heads to U.S.... Hyundai Engineering & Construction in the Spotlight [Stock(s) of the Week]

South Korea Considering Construction of Eight Large-Scale Nuclear Power Plants Worth $120 Billion

Hyundai Engineering & Construction—Korea’s Leading Nuclear Plant Builder—Gains Attention

Hyundai E&C Actively Expanding Into U.S. Nuclear Market With TerraPower and Holtec Partnerships

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As the Korean government pursues the construction of large-scale nuclear power plants in the United States, Hyundai Engineering & Construction has emerged as a beneficiary. Hyundai Engineering & Construction possesses strengths across the entire nuclear industry spectrum, ranging from large reactors to small modular reactor (SMR) construction. Unlike its past focus on construction work (C), the company is now reborn as a nuclear EPC (Engineering, Procurement, and Construction) contractor, performing not only construction but also detailed design (E) and procurement (P), which has led to a revaluation of its stock.

South Korea and the U.S. in Talks On Building 8 Large Nuclear Power Plants in the U.S. Worth $120 Billion

According to the Korea Exchange on September 16, Hyundai Engineering & Construction’s share price rose by 32.7% last month, far exceeding the benchmark KOSPI's 3.4% increase. Even this month, while the KOSPI has decreased by about 2.7%, Hyundai Engineering & Construction has risen 2.5%, showing continued strength.

The main driver behind the surge in Hyundai Engineering & Construction’s stock price has been expectations over its top-level domestic expertise in nuclear plant construction. In particular, the recent likelihood that the Korean government will build large nuclear power plants in the U.S. has further boosted its shares. According to industry sources, the U.S. government has proposed that, of Korea’s planned $350 billion in U.S. investments, $120 billion (KRW 161 trillion) be allocated for constructing eight nuclear power plants.

The Ministry of Trade, Industry and Energy reportedly briefed lawmakers on this during a closed-door ruling party-government meeting at the National Assembly. The Wall Street Journal also reported recently that, as the first project of South Korea's investment agreement with the U.S. signed last year, discussions are close to finalized for more than $100 billion to be invested in energy—including eight nuclear reactors and natural gas projects.

Korean investments in U.S. nuclear power represent a significant opportunity for Korean builders. Due to the explosive growth of the artificial intelligence (AI) sector in the U.S., demand for power to run AI data centers is surging and there are few domestic companies capable of building new nuclear reactors. Conversely, Korean builders have proven world-class EPC capabilities by continually constructing nuclear plants at home and completing successful projects in the Middle East.

Market analysts are particularly focused on Hyundai Engineering & Construction among Korean construction companies. Of the 36 large reactors built in Korea—including the first Kori unit, Korean standard reactors, and new-generation pressurized water reactors—Hyundai Engineering & Construction has constructed 24, proving its capabilities. In particular, its successful completion of the Barakah plant in the United Arab Emirates (UAE) in 2009 demonstrated Hyundai Engineering & Construction's EPC technology on a global stage. Having repeatedly achieved these successes, the company is now being evaluated not merely as a construction stock, but specifically as a nuclear power stock.

Park Sera, a researcher at Shin Young Securities, commented, “With U.S. nuclear construction included in Korea’s investment projects, Hyundai Engineering & Construction is increasingly likely to participate. It is a rare company that can take on orders across electricity (nuclear and SMRs), transmission/distribution, infrastructure (civil engineering), and housing sectors.”

‘Number One in Korean Nuclear Plant Construction’ Hyundai Engineering & Construction Gaining Attention—Aggressively Entering the U.S. Market

As the AI industry rapidly expands, Hyundai Engineering & Construction is dedicating significant focus to the U.S. nuclear power market. Its U.S. nuclear business operates on a two-track model: it works with Westinghouse for large reactors, and with Holtec and TerraPower for SMR projects. Recently, Hyundai Engineering & Construction's cooperation with TerraPower—co-founded by Microsoft’s Bill Gates—has attracted particular attention.

Regarding this, HD Hyundai Chairman Chung Ki-sun met with Bill Gates, Chairman of the Board at TerraPower, in Seoul on August 14 to discuss next-generation SMR projects. In May, HD Hyundai, TerraPower, and Hyundai Engineering & Construction signed a three-party Memorandum of Understanding (MOU) to collaborate on the next-generation sodium-cooled nuclear reactor project. Lee Han-woo, CEO of Hyundai Engineering & Construction, also attended the meeting.

Jung Ki-sun, Chairman of HD Hyundai (right), is meeting with Bill Gates, Chairman of the Board at TerraPower, on the 14th of last month to discuss business cooperation plans. HD Hyundai

Chairman Chung, CEO Lee, and others discussed multifaceted cooperation—including manufacturing, supply chain, and construction—to accelerate the commercialization of next-generation sodium-cooled SMRs. Chairman Chung stated, “Based on a collaborative framework encompassing technology, manufacturing, and EPC, we can speed up the commercialization of next-generation reactors. We will proactively address rising demand for SMR development through our in-house R&D and partnerships with global companies."

Following the meeting, Hyundai Engineering & Construction signed a framework agreement with TerraPower on August 18 to perform the sodium reactor project. The company secured a preferential right to participate as an EPC partner in up to eight additional sodium reactor units that TerraPower is planning.

TerraPower’s “Sodium” project is a 4th-generation next-generation SMR model based on a 345MW-class sodium-cooled fast reactor (SFR). By using liquid sodium as a coolant, safety is improved, and the reactor features an energy storage system capable of adjusting output in response to the fluctuating supply of renewable energy.

Hyundai Engineering & Construction is also partnering with U.S. nuclear specialist Holtec. With the construction rights for Holtec’s proprietary 300MW-class light water SMR, the ‘SMR-300’ model, the company is bidding on projects both in the U.S. and internationally.

The main project involves constructing two SMR-300 units at the Palisades Nuclear Power Plant site in Michigan. The companies are targeting commercial operation by 2030. Their partnership extends far beyond SMR construction—covering nuclear decommissioning, spent nuclear fuel interim storage, and the full nuclear value chain—making it a hallmark for South Korea-U.S. technological and construction cooperation in nuclear power.

Jang Moonjun, a researcher at KB Securities, noted, “By securing EPC priority for TerraPower SMRs, Hyundai Engineering & Construction is solidifying its pipeline across the entire nuclear sector—large reactors, SMRs, Gen 3.5 and Gen 4 models. We recommend Hyundai Engineering & Construction as the top pick among Korean and global nuclear companies.”

The performance outlook also remains positive. According to FNGuide consensus data, analysts project Hyundai Engineering & Construction’s operating profit to rise 33% year-on-year to KRW 868.9 billion this year, and to further increase to KRW 1.1276 trillion next year.

Kim Sunmi, an analyst at Shinhan Investment & Securities, commented, “Profitability in the domestic business remains constrained by price competition, but overseas projects—in which the company acts as the sole contractor—allow for price negotiations with key designers, improving profitability prospects. We recommend Hyundai Engineering & Construction as the top sector pick.”

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