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Local governments compete to host Korea's first SMR, expect trillions of won in economic value

Published: 25 Apr. 2026, 07:00

Visitors look at a small modular reactor model set up inside the nuclear power fair at the Bexco convention center in Busan on April 22. [YONHAP]

Local governments are competing to host Korea’s first small modular reactor (SMR) — with a total capacity of 0.7 gigawatts and scheduled for completion by 2035 — amid growing expectations that the market will expand to an astronomical scale due to generous financial support and incentives.

The short list of contenders has already been set. Korea Hydro & Nuclear Power (KHNP) said that it received applications from the city of Gyeongju in North Gyeongsang and Gijang County in Busan for the construction of a new nuclear power plant site, with both regions expressing interest in hosting an SMR.

Unlike conventional large-scale reactors, SMRs integrate a reactor and other key components into a single unit. As the cooling system is built into a singular vessel, SMRs require shorter construction periods and are thus less expensive to produce. Their compact design also enables them to be constructed near sources of power demand, making SMRs a promising power source in the AI era, which demands a constant and large electricity supply.

Local governments are aggressively pursuing SMR projects largely due to their extensive financial benefits. Authorities project legally mandated support tied to SMR construction to total approximately 780 billion won ($530 million) over the course of 80 years. When including broader economic ripple effects, the overall economic value for host regions is expected to reach several trillion won.

KHNP plans to complete preliminary studies and on-site inspections by June, followed by evaluations by an external site selection committee, before making a final decision.

Both Gyeongju and Gijang County already have longstanding ties to nuclear energy. Gyeongju hosts KHNP’s headquarters, the Wolsong Nuclear Power Plant and a low- and intermediate-level radioactive waste disposal facility. Gijang is home to the Kori Nuclear Power Plant, which received Korea’s first nuclear operations license in May 1972.

Officials from the Gyeongju city government sign a memorandum of understanding with those from the North Gyeongsang provincial government, Pohang and four local universities to support its bid on April 23. [GYEONGJU-SI]

A 3-D-rendered model of the Munmu Daewang Science Research Center, aimed at becoming the small modular reactor research facility for Gyeongju, North Gyeongsang [NEWS1]

Gyeongju has emphasized that it is “the only city where construction can begin immediately.” According to the city, not only could the Munmu Daewang Science Research Center, currently under development, serve as a foundation for SMR-related design and research, but the potential SMR’s proximity to an established nuclear industry ecosystem would enable the full development process, from design to demonstration, to be completed in the shortest possible time.

In fact, Gyeongju signed a memorandum of understanding with the North Gyeongsang provincial government, the city of Pohang and four local universities — the Pohang University of Science and Technology, Handong Global University, Dongguk University WISE Campus and Uiduk University — on Thursday to support its bid.

Meanwhile, Gijang has also formed a task force dedicated to attracting an SMR project, with a site previously designated for two Kori nuclear plant units currently under review as a potential SMR location.

Gijang officials have highlighted the site’s geographic advantages. As KHNP owns the land, which is by the sea, it could begin construction on the SMR without completing additional procedures, such as land acquisition or site preparation. The county also pointed to its experience across the entire nuclear power life cycle — from design and construction to operation and decommissioning — as a key strength.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JUNG-SEOK, KIM MIN-JU [[email protected]]