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SMRs return to Korea's energy mix amid AI-driven power surge
Amid surging demand and limited grid capacity, SMRs emerge as controversial but viable option
Small modular reactors or SMRs are reemerging in the national energy conversation as South Korea reevaluates its energy strategy, driven by a sharp rise in electricity demand from artificial intelligence and data center expansion.
The new liberal administration under President Lee Jae Myung, who took office earlier this month, has expressed cautious support for SMRs. This marks a shift from the Democratic Party of Korea's stance under the Moon Jae-in administration, which pursued a nuclear phase-out.
While Lee has reiterated his opposition to expanding large-scale nuclear power, he views SMRs as a pragmatic, flexible energy solution compatible with Korea's decarbonization and energy security goals.
SMRs are advanced nuclear reactors that generate up to 300 megawatts of electricity — about one-third the capacity of traditional nuclear plants.
Their compact, factory-built design allows for modular deployment in remote or space-limited locations, making them an attractive alternative for industrial zones, small communities and even energy-intensive tech facilities.
SMRs use the same basic fission process as conventional reactors but are engineered for simpler, safer and more scalable use.
The growing appeal of SMRs also stems from their potential to address the surging power demands driven by AI technology.
South Korea is expected to add 732 new data centers by 2029, requiring a combined 49.4 gigawatts of contracted power. This is equivalent to more than half of the nation's peak capacity in 2022, according to the Industry Ministry.
As global tech firms look to low-carbon energy to power their operations, SMRs have emerged as a viable candidate to meet such needs.
In line with this shift, Democratic Party lawmaker Hwang Jung-a on June 12 proposed a bill titled the 'SMR Special Act,' which seeks to establish a national roadmap for SMR development.
The legislation includes provisions for administrative, technical and financial support for research and development projects, private-sector participation, workforce training and public engagement.
'This is a legislative measure in response to what advanced countries such as the US, UK, and Canada are already doing to support SMRs,' Hwang said.
However, the renewed push for SMRs has sparked concern among environmental groups.
The Korea Federation for Environmental Movements issued a statement calling SMRs a 'delusion of the nuclear industry,' raising safety concerns over radiation risks, particularly when reactors are located near urban centers.
Critics also argue that SMRs may have higher costs per kilowatt-hour than traditional nuclear plants and still produce radioactive waste without a clear disposal strategy.
Despite the criticism, advocates argue that SMRs offer advanced safety features, including passive cooling systems that allow reactors to shut down safely without external power in the event of an emergency.
'SMRs are the optimal energy source for addressing the climate crisis, energy security and the AI era,' said Korean Nuclear Society President Lee Ki-bog.
Korea's Nuclear Safety and Security Commission is also stepping in to support the shift. The agency announced plans to develop a regulatory framework to back the government's 'i-SMR' project. Korea Hydro & Nuclear Power, the country's state-run utility, aims to secure regulatory approval by 2028.
Experts say that while Korea already possesses world-class nuclear technology, its industrial base remains narrow.
'Nuclear energy supplies around 30 percent of Korea's electricity, but only accounts for 10 percent of total fuel costs,' said Kim Sung-joong, a professor of nuclear engineering at Hanyang University.
'If the share of nuclear energy were increased to 50 percent, we could cut energy import costs by up to 11 trillion won ($8 billion).'
