South Korea nuclear watchdog approves first dismantlement of nuclear power plant

South Korea's Nuclear Safety and Security Commission has approved the first dismantlement of a nuclear power plant in the country, the Kori-1, which ceased operations in 2017. Operator Korea Hydro and Nuclear Power (KHNP) will undertake the 12-year project at a cost of 1.1 trillion won ($810 million), including handling approximately 170,000 tonnes of nuclear waste. This landmark decision positions South Korea, a major global nuclear energy producer and plant builder, to potentially enter the growing international nuclear decommissioning market.

Analysis

South Korea's Nuclear Safety and Security Commission has granted its first-ever approval for the dismantlement of a nuclear power plant, the Kori-1 unit. The project, to be executed by operator Korea Hydro and Nuclear Power (KHNP) over 12 years at a cost of 1.1 trillion won ($810 million), marks a significant strategic development for the country's nuclear industry. As the world's fifth-largest nuclear energy producer, with nuclear power accounting for 31.7% of its electricity generation in 2024, this move signals an expansion of capabilities beyond plant construction and into the full asset lifecycle. The successful decommissioning of Kori-1, involving the complex management of approximately 170,000 tonnes of nuclear waste, is positioned as a critical entry point into the global nuclear decommissioning market. This market is currently dominated by the United States, and South Korea's ability to execute this project could establish it as a credible new competitor alongside nations like Japan and Germany.

Key Decisions for Investors

• Investors should monitor South Korean engineering and waste management firms that could emerge as key suppliers for the nascent, multi-billion dollar domestic nuclear decommissioning market.
• The execution of the Kori-1 project is a critical catalyst; its progress and cost-efficiency will be a primary indicator of South Korea's ability to compete in the global decommissioning sector against established players.
• This development strengthens the ESG case for the nuclear sector by demonstrating a clear pathway for end-of-life asset management, potentially improving the risk profile for long-term investors in nuclear energy.