The spread of artificial intelligence data centers and advanced industries has made stable carbon-free energy a determinant of national competitiveness. Small modular reactors, or SMRs, are drawing attention because they can be placed flexibly near demand centers and used without carbon emissions to power ships, supply industrial process heat, produce hydrogen and ammonia, and desalinate seawater. With the United States and China accelerating demonstration projects and construction, some argue that Korea has only a few years left to convert its nuclear supply chain into actual orders.
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: "I think we have roughly three to five years left to establish ourselves as an irreplaceable country in the global SMR market." He added: "With the United States and Japan building their own supply chains and China speeding up its entry into the world market, if we hesitate now we could lose our strengths." Kim earned bachelor's, master's and doctoral degrees in mechanical engineering from Pohang University of Science and Technology and worked as a postdoctoral researcher in the Department of Nuclear Science and Engineering at the Massachusetts Institute of Technology. Kim currently heads Kyung Hee University's Net Zero Energy Infrastructure Convergence Center, conducting research on next-generation reactors and on the development and regulation of molten salt reactors for maritime use, and also serves as director of international cooperation at the Korean Nuclear Society.
SMRs, whose main components are built 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 burden of building large-scale transmission networks. Still, design, licensing, component manufacturing, demonstration and construction all take considerable time, making commercial deployment difficult before the mid-2030s. "SMRs are a stable carbon-free power source that can be installed near data centers and industrial complexes, and they can also be used for ship propulsion and industrial process heat," Kim said.
The decisive factor 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 sodium-cooled reactor is targeting completion in 2032. China put its HTR-PM high-temperature gas-cooled reactor into commercial operation in 2023, and its ACP100 has entered the trial operation stage. Korea's innovative SMR, or 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 the first unit can we verify project costs, construction periods and operating performance and attract private capital and overseas customers," Kim said. "Competing designs abroad could enter commercial use in the early to mid-2030s, so we need to move faster as well."
Korea's greatest competitive strength lies in the design, manufacturing, construction and operating capabilities it built while constructing large nuclear plants. It has the entire nuclear value chain, from reactor pressure vessels and steam generators to pumps, valves and piping and on to sensors and control panels. The number of qualified nuclear suppliers registered with Korea Hydro & Nuclear Power reached about 840 last year. The United States, however, is rushing to build its own supply chain in the name of energy security and manufacturing revival, and Japan is also expanding its participation in U.S. SMR projects. Washington plans to release a draft licensing framework next month for micro modular reactors, or MMRs, ultra-small reactors that are smaller than SMRs and easier to transport and install. China, which accounts for about 50% of nuclear construction worldwide, has already begun SMR demonstration work, backed by a large domestic market and government support. "Japan is looking to take our place. The United States is also moving quickly toward self-reliance," Kim said. "China's entry into Western nuclear markets is restricted by U.S. containment, but who knows what will happen going forward?"
Kim therefore recommended that Korea combine its manufacturing and construction capabilities with the U.S. technology and market base to take part in first-of-a-kind projects in North America, while pressing ahead with i-SMR development without delay. "There is no need to view the value added from cooperation as low simply because the structure has the United States designing and Korea manufacturing," Kim said. "Korea has ample potential to export its own SMRs while also growing into an 'SMR foundry' that produces major equipment and components for SMRs worldwide."
Government support is also urgently needed to accelerate construction of the first domestic unit. The scope and level 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. Placing advance orders for major equipment and components with long manufacturing lead times, in step with design progress, is another option worth considering. "This is not about loosening regulation but about keeping pace with international trends," Kim said.
Kim also cited allowing direct power purchase agreements, or PPAs, for SMR electricity as a key task. Under the current Electric Utility Act and its subordinate regulations, 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 the long term. Securing early demand is what makes private investment, financing and follow-on construction possible. "A special act on SMRs passed the National Assembly early this year, so the ruling and opposition parties along with industry, academia, research institutes and government should join forces to build a foundation for future growth engines," Kim said.
