"I believe we have roughly three to five years left to establish ourselves as an irreplaceable country in the global SMR market," Kim Hyung-dae, a professor of nuclear engineering at Kyung Hee University, said in an interview at his office in Yongin, Gyeonggi Province, on the 18th. "With the U.S. and Japan building their own supply chains and China accelerating its push into global markets, hesitating now could cost us our advantage." Kim earned bachelor's, master's and doctoral degrees in mechanical engineering from POSTECH and worked as a postdoctoral researcher in the Department of Nuclear Science and Engineering at the Massachusetts Institute of Technology. He currently heads Kyung Hee University's Net-Zero Energy Infrastructure Convergence Center, researching next-generation reactors and the development and regulation of marine molten salt reactors, and also serves as director of international cooperation at the Korean Nuclear Society.
SMRs, whose main components are manufactured in factories and assembled on site, can reduce upfront investment burdens and construction periods once standardization and repeat production take hold. Another advantage is that they lower the need for large-scale transmission network construction. However, design, licensing, component manufacturing, demonstration and construction all require considerable time, making commercial deployment unlikely before the mid-2030s. "SMRs are a stable carbon-free power source that can be installed near data centers and industrial complexes, and can also be used for ship propulsion and industrial process heat," Kim said.
The decisive battleground in global SMR competition is expected to be actual construction and operating records rather than design technology. In Canada, GE Hitachi's BWRX-300 has entered the construction phase, and U.S.-based TerraPower's Natrium reactor is targeting completion in 2032. China put its high-temperature gas-cooled HTR-PM into commercial operation in 2023, and its ACP100 has entered the trial operation stage. South Korea's innovative SMR (i-SMR) aims to obtain standard design approval by the end of 2028 and complete its first domestic unit in December 2035. "Only by building a first unit can we verify project costs, construction periods and operating performance, and attract private capital and overseas customers," Kim said. "Competing overseas designs could reach commercialization in the early to mid-2030s, so we need to move faster."
South Korea's greatest strength lies in the design, manufacturing, construction and operating capabilities built up through large nuclear plant projects. The country has the full nuclear value chain, from reactor pressure vessels and steam generators to pumps, valves, piping, sensors and control panels. As of last year, about 840 companies were registered with Korea Hydro & Nuclear Power as qualified nuclear suppliers. But the United States is rushing to build its own supply chain in the name of energy security and manufacturing revival, and Japan is expanding its participation in U.S. SMR projects. Washington also plans to release draft licensing rules next month for micro modular reactors (MMRs), ultra-small reactors that are smaller than SMRs and easier to transport and install. China, which accounts for roughly 50% of global nuclear construction, has already begun SMR demonstration projects on the back of its large domestic market and government support. "Japan is aiming to take our place, and the U.S. is moving quickly toward self-reliance," Kim said. "China's entry into Western nuclear markets is restricted by U.S. containment, but who knows how that will change?"
He therefore recommended combining U.S. technology and market access with South Korea's manufacturing and construction capabilities to participate in first-of-a-kind projects in North America, while pressing ahead with i-SMR development without delay. "Just because the structure has the U.S. designing and Korea manufacturing doesn't mean the value added from cooperation is low," he said. "Korea has ample potential to export its own SMRs while growing into an 'SMR foundry' that produces key equipment and components for SMRs worldwide."
Government support is also urgently needed to accelerate construction of the first domestic unit. The scope and rigor of safety reviews should be maintained, but review staff should be increased and operators and regulators should communicate from the early design stage to reduce administrative delays. Ordering long-lead components and parts in advance, in line with design progress, could also be considered. "This is not about loosening regulation but about keeping pace with international trends," he said.
Kim also cited allowing direct power purchase agreements (PPAs) for SMR electricity as a key task. Under the current Electricity Business Act, nuclear power is in principle difficult to trade through direct PPAs, so the system should be improved to let data centers and advanced manufacturers buy SMR power directly over long periods, he said. Securing early demand is essential to drawing private investment, financing and follow-on construction. "With the special SMR act having passed the National Assembly early this year, the ruling and opposition parties, along with industry, academia, research institutes and government, must join forces to build a foundation for future growth engines," Kim said.
[Reference] SMR applications
SMRs can be used for multiple purposes beyond power generation, including supplying industrial process heat and propelling ships. Process-heat SMRs can reliably supply the heat and steam needed at petrochemical and refining sites, reducing manufacturers' carbon emissions and exposure to fuel price swings while strengthening industrial competitiveness.
SMRs for ship propulsion, in particular, could be a game changer for the shipping industry by sharply reducing carbon emissions and refueling burdens for large vessels. Combining South Korea's nuclear technology with its shipbuilding capabilities could allow the country to lead the next-generation vessel market and create new high-value industries spanning equipment, operations and maintenance services.
