Inside the municipal scramble for Seoul’s nuclear future

Regional authorities across South Korea are currently engaged in a high-stakes struggle to secure the nation's debut small modular reactor (SMR) installation, lured by the promise of vast financial dividends, Korea JoongAng Daily reported on April 27. This pilot scheme, designed with a 0.7-GW capacity, is earmarked for commissioning by 2035.

Korea Hydro & Nuclear Power (KHNP) has formally acknowledged interest from Gyeongju, located in North Gyeongsang, and Gijang County in Busan. Both contenders are framing themselves as the logical cradle for this emerging nuclear frontier.

The nation already possesses a formidable nuclear pedigree, with its 26 existing reactors generating 30% of its power in 2024, World Nuclear News noted. Looking ahead, the 11th Basic Plan for Long-Term Electricity Supply and Demand (BPLE), ratified in February 2025, targets a nuclear capacity of 35.2 GW by 2038, according to The Electricity Hub. This blueprint involves commissioned construction of three traditional large-scale units alongside this first commercial SMR, aiming to ensure nuclear power maintains at least a 32.9% share of the energy mix by the end of the next decade.

The modular pivot

In contrast to conventional, sprawling nuclear plants, these smaller units integrate both the core reactor and its associated thermal management systems into one unified, space-saving containment. Most significantly, this reduced physical presence allows the technology to be positioned in close proximity to the specific industrial hubs where power consumption is at its most intensive.

South Korea is currently pursuing its indigenous "i-SMR" design—a 170-MW pressurised water reactor. The NucNet news agency reports that the Nuclear Safety and Security Commission (NSSC) began a standard design review for the i-SMR in March 2026. The goal is to obtain standard design approval by 2028, with the Maeil Business Newspaper (MK) noting that the 0.7-GW project in 2035 would likely comprise four of these 170-MW modules.

The "trillions of won" in economic value isn't hyperbole. The project represents a fundamental pivot in how South Korea manages its grid. The SMR market is projected to expand to an astronomical scale globally. For local governments, hosting the first unit provides a first-mover advantage in attracting auxiliary industries, from specialised maintenance firms to high-tech manufacturing hubs that want to be close to the source.

The primary driver for municipal interest is the financial windfall. Authorities project that legally mandated support for the host region will total c. KRW780bn ($0.53bn) over an 80-year lifecycle. When broader economic ripple effects are factored in, Korea JoongAng Daily estimates the total value could reach several trillion won.

KHNP is currently finalising preliminary studies, with a final decision expected by June. Both contenders are nuclear veterans: Gyeongju houses the KHNP headquarters and the Wolsong plant, while Gijang is home to the Kori plant, where South Korea’s nuclear operations began in May 1972.

Gyeongju officials claim they are the only city ready for immediate construction, leveraging the Munmu Daewang Science Research Center as a foundation for SMR innovation. Gijang is countering with its coastal land readiness; because KHNP already owns idle land at the Kori site, the project could skip lengthy acquisition procedures, MK reports.

Export ambitions, national strategy

This domestic race is a microcosm of a larger ambition. South Korea has set a target to win 10 new nuclear plant orders abroad by 2030, according to World Nuclear News. The flagship APR1400 model is already a proven export, with all four units at the Barakah plant in the UAE entering commercial service as of late 2024.

The 2035 SMR project is essentially a prototype for a global export product. As IntelliNews reports, Seoul is already laying the groundwork for international cooperation, having signed the four-way memorandum of understanding (MOU) with Vietnam in April 2026 covering nuclear power and infrastructure. If the domestic pilot succeeds, it secures "Korea Inc’s" brand in a market where US and European rivals are also racing for dominance.

The June decision will be a major catalyst for regional infrastructure plays. If Gyeongju wins, it solidifies its status as the Silicon Valley of Korean nuclear tech. If Gijang takes it, the focus shifts to industrial efficiency and coastal logistics. Either way, the 0.7-GW project is the opening salvo in a decade-long infrastructure build-out that will define South Korea’s energy mix for the rest of the century.

KHNP’s timeline is tight, and the political pressure is high. With the AI boom showing no signs of slowing, the race for stable power is no longer just an environmental issue, it’s a race for industrial survival. If the domestic pilot fails to launch on time, it dents the brand in the highly competitive global reactor market.

South Korea’s central government has also ramped up R&D spending to ensure domestic SMR designs remain competitive against US and European rivals, The Korea Times reports. This indicates that whichever municipality wins the bid won’t just be hosting a power plant; it will be the focal point of a strategic national export industry.