{"id":2198884,"date":"2022-09-06T10:32:00","date_gmt":"2022-09-06T10:32:00","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2198884"},"modified":"2023-04-05T16:11:39","modified_gmt":"2023-04-05T07:11:39","slug":"how-the-war-in-ukraine-complicates-south-koreas-nuclear-export-plans","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/09\/how-the-war-in-ukraine-complicates-south-koreas-nuclear-export-plans\/","title":{"rendered":"How the war in Ukraine complicates South Korea\u2019s nuclear export plans"},"content":{"rendered":"

The South Korean government announced<\/a> in late August that Korea Hydro & Nuclear Power Co. (KHNP) has won a $2.5 billion bid to construct Egypt\u2019s first nuclear power plant, a major boon for President Yoon Suk-yeol\u2019s efforts to reinvigorate Seoul\u2019s nuclear exports<\/a>.<\/p>\n

The successful Egypt bid marks the first time South Korea has been tapped to build an overseas nuclear plant in 13 years. Seoul\u2019s last such international project was the <\/span>Barakah nuclear power facility<\/span><\/a> in the United Arab Emirates, which began operations last year.<\/span><\/p>\n

Amid <\/span>much<\/span><\/a> troubling<\/span><\/a> economic<\/span><\/a> news<\/span><\/a> for South Korea, the Egypt bid is one of the few bright spots in Yoon\u2019s economic policy. His administration has made nuclear power a key policy priority, abandoning his predecessor\u2019s <\/span>nuclear phaseout<\/span><\/a> and setting the ambitious goal \u2014 perhaps overly ambitious \u2014 of exporting <\/span>ten nuclear power plants<\/span><\/a> by 2030.<\/span><\/p>\n

Seoul is now attempting to convince countries including the <\/span>Czech Republic<\/span><\/a>, <\/span>Poland<\/span><\/a> and <\/span>Saudi Arabia<\/span><\/a> to import South Korean nuclear power plants.<\/span><\/p>\n

However, the Yoon administration still remains a long way from achieving its nuclear export goals and will need to see the Egypt plant through as it tries to market itself to other countries, a task that could be more challenging in the aftermath of Russia\u2019s invasion of Ukraine.<\/span><\/p>\n

\"\"

A Ukrainian soldier in April 2015. U.S. efforts to increase economic pressure on Russia in response to its invasion of Ukraine could complicate the South Korean nuclear power plant project in Egypt | Image: Ukrainian defense ministry via Wikimedia Commons<\/a> (CC BY-SA 2.0<\/a>)<\/span><\/p><\/div>\n

STUMBLING BLOCKS<\/b><\/p>\n

KHNP\u2019s successful bid to construct the El-Dabaa Nuclear Power Plant is a win for the Yoon administration, but there are complications. Most notably, it did not win the bid independently but rather by winning a subcontract from Atomstroyexport (ASE), a subsidiary of Moscow\u2019s state-owned Rosatom.<\/span><\/p>\n

This could present problems because the South Korean government has <\/span>joined<\/span><\/a> the U.S.-led economic sanctions regime against Russia for its invasion of Ukraine, and Moscow has since <\/span>added<\/span><\/a> South Korea to its list of \u201cunfriendly countries.\u201d<\/span><\/p>\n

Seoul\u2019s energy ministry has taken the <\/span>position<\/span><\/a> that Rosatom is not on the list of entities that face U.S. sanctions, and South Korean officials have assured Washington that KHNP\u2019s cooperation with ASE does not conflict with sanctions against Russia, including the <\/span>requirement<\/span><\/a> that South Korea provide turbine-related equipment and construction for the nuclear power plant.<\/span><\/p>\n

Even so, South Korea\u2019s cooperation with Russia will be an eyesore for the Biden administration as it tries to exert economic pressure on Moscow. With the Russian economy showing <\/span>greater resilience<\/span><\/a> than initially expected, Seoul\u2019s <\/span>continued purchase<\/span><\/a> of Russian gas will inevitably come under scrutiny. This new nuclear power venture will only increase attention on such purchases.<\/span><\/p>\n

More worrisome, behind lofty rhetoric about values-based alliances and partnerships, cracks may be emerging in ROK-U.S. relations, at least on the economic front. While South Korea committed to joining the U.S.-led <\/span>Indo-Pacific Economic Framework<\/span><\/a> and also took steps toward joining the <\/span>Chip 4 alliance<\/span><\/a>, the Biden administration has since signed the Inflation Reduction Act into law, <\/span>excluding South Korean electric vehicles<\/span><\/a> from tax credits.<\/span><\/p>\n

Some in South Korea see the Inflation Reduction Act as a \u201c<\/span>betrayal<\/span><\/a>\u201d in light of the Yoon administration\u2019s decision to side with the U.S., and while Seoul is pushing Washington to reconsider, the White House is not likely to concede anything before the November midterm elections.<\/span><\/p>\n

While this isn\u2019t likely to lead to a significant deterioration in ROK-US ties, Moscow could try to use the nuclear plant deal as a wedge between Seoul and Washington.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol has made nuclear exports a key part of his economic policy | Image: South Korean presidential office (Aug. 25, 2022)<\/p><\/div>\n

THE UPSIDE<\/b><\/p>\n

Despite the issue of Russia\u2019s involvement, the nuclear plant project in Egypt has clear, concrete benefits for South Korea.<\/span><\/p>\n

For one, carrying the KHNP-ASE deal as it has been will serve as a great marketing tool for South Korea\u2019s nuclear energy industry, especially after the ROK-built Barakah nuclear power plant in the UAE began commercial operation last year.<\/span><\/p>\n

To date, the only nuclear power plants on the African continent are in <\/span>South Africa<\/span><\/a>. But given the reality of climate change and the geopolitical risks associated with oil and gas, nuclear energy is an attractive method to generate electricity. In addition to being carbon-free, nuclear power stations can also be an effective tool for <\/span>desalination<\/span><\/a>, which would help address <\/span>water shortages<\/span><\/a> in many parts of Africa.<\/span><\/p>\n

Several countries in Africa are beginning to invest in nuclear energy. Tanzania, which <\/span>discovered uranium<\/span><\/a> within its borders a few years ago, has <\/span>nearly completed<\/span><\/a> its nuclear energy laboratory. It is only a matter of time before Dodoma seriously considers the logical next step of building a nuclear power plant. <\/span>Uganda<\/span><\/a> has also sought Russian help to build a nuclear power plant.<\/span><\/p>\n

South Korea can use its experience constructing the UAE\u2019s Barakah nuclear power plant to repeat that success in Egypt, and show countries in Africa and the Middle East that it is a reliable partner in the defense and energy industries. By doing so, Seoul can present itself as a partner that countries in the region can cooperate with while avoiding antagonizing Beijing and Moscow.<\/span><\/p>\n

In turn, South Korea\u2019s role in providing carbon-free nuclear energy to African countries will serve as a badly needed democratic counterweight to <\/span>Russian and Chinese economic dominance<\/span><\/a> on the continent. Eventually, it would further the Yoon administration\u2019s goal of transforming South Korea into a \u201cglobal pivotal state.\u201d<\/span><\/p>\n

<\/b>NEXT STEPS<\/b><\/p>\n

In the meantime, Seoul cannot afford to rest on its laurels. While the Yoon administration is unlikely to meet its goal of exporting ten power plants by 2030, it could seek to achieve about half of that goal by angling to build power plants in the Czech Republic, Poland and Saudi Arabia.<\/span><\/p>\n

South Korea has already concluded a <\/span>massive arms deal<\/span><\/a> with Poland, which has tightened relations between Seoul and Warsaw. The Yoon administration can use that to its advantage in its bid to build its next nuclear power plant there. Similarly, South Korea has begun to <\/span>pivot to the Middle East<\/span><\/a>, and it can use its nascent yet <\/span>growing influence<\/span><\/a> in Riyadh to do the same.<\/span><\/p>\n

Even achieving half of the Yoon administration\u2019s nuclear energy goals would go a long way toward redefining South Korea\u2019s image and global reach for the foreseeable future.<\/span><\/p>\n

Edited by Bryan Betts<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

The South Korean government announced in late August that Korea Hydro & Nuclear Power Co. (KHNP) has won a $2.5 billion bid to construct Egypt\u2019s first nuclear power plant, a major boon for President Yoon Suk-yeol\u2019s efforts to reinvigorate Seoul\u2019s nuclear exports. The successful Egypt bid marks the first time South Korea has been tapped […]<\/p>\n","protected":false},"author":7824,"featured_media":2198888,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,28],"class_list":["post-2198884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-inter-korean-foreign-relations"],"yoast_head":"\nHow the war in Ukraine complicates South Korea\u2019s nuclear export plans - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/09\/how-the-war-in-ukraine-complicates-south-koreas-nuclear-export-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How the war in Ukraine complicates South Korea\u2019s nuclear export plans - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The South Korean government announced in late August that Korea Hydro & Nuclear Power Co. 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