S.Korea to support nuclear power SMEs

South Korea's the ministry of SMEs and Startups will invest 675 billion won ($513 million) by 2027 to revive small- and middle-sized nuclear power companies that have been affected by the government's nuclear power phase-out policy.

According to the recently announced policy measure, the vitality of small- and middie-sized nuclear power companies will be restored by 2024 to help them recover their competitiveness to the level of 2016, prior to the phase-out policy.

Based on this, the plan is to cultivate 150 small- and medium-sized nuclear power firms by 2027. The ministry estimates that there are currently about 550 small- and medium-sized companies related to nuclear power in the country.

The Ministry of SMEs and Startups announced the "Long-term competitiveness restoration plan for small- and middle-sized nuclear power companies" on Tuesday, which includes the above provisions.

Short-term concentrated support will be provided in business areas with a large cut in sales and workforce by next year in order to secure their vitality. As the time for the reinvigoration of the nuclear power market is expected to come with the construction of new nuclear power plants in the country and the promotion of exports abroad, support will be provided as soon as possible for their market entry.

Small- and middle-sized nuclear power companies are in a situation where government support is urgently needed as their sales and workforce have decreased significantly in four areas: auxiliary equipment and parts, maintenance and decontamination, electricity and instrumentation and machinery equipment. The plan is to concentrate support, including funding and research and development (R&D), in these areas by 2024.

Beginning in 2025, support will be focused on securing the competitiveness of parts localization and exports so that small- and medium-sized companies can continue to grow.

In order to develop domestic technology, cooperation will be made with customer companies such as Korea Hydro & Nuclear Power and Doosan Enerbility to discover import-substitution items that are highly applicable in nuclear power sites, and the ministry and customer companies will promote joint development.

Write to Jeong-Seon Lee at leeway@hankyung.com