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Strategic Vision: Gyeongsangnam-do has announced a massive KRW 1.8 trillion (approx. $1.3 billion) initiative to secure 60% of the global Small Modular Reactor (SMR) manufacturing market.
Industry Drivers: The strategy addresses the surging power demands of the AI and data center era, positioning SMRs as the essential, stable, carbon-free energy solution to complement renewables.
Policy & Cooperation: The plan proposes significant government incentives, including the enactment of a Special SMR Act, and emphasizes strengthening the Korea-U.S. nuclear alliance through joint R&D and regulatory harmonization.
Gyeongsangnam-do (Gyeongnam), the industrial heartland of South Korea, has officially declared a strategic roadmap to dominate the future global nuclear market. On the 15th, the provincial government released its "Global SMR Promotion Strategy," a proactive response to the shifting paradigms of the global energy sector.
Following calls last month for state-level support to preemptively secure nuclear technologies, Gyeongnam convened intense strategy sessions with industry leaders, academia, and research institutes. The resulting blueprint reflects the urgent voices of the field, aiming to solidify the region's status as a manufacturing powerhouse.
The Catalyst: Digital Transformation and Energy Security
According to Vice Governor for Economic Affairs Kim Myeong-ju, the digital transformation—specifically the exponential growth of data centers—has driven South Korea's per capita power consumption up by 1.7 times over the last two decades.
While renewable energy is vital, its inherent intermittency and volatility require a stable baseload partner. Nuclear power is being re-evaluated globally as this solution. In particular, Small Modular Reactors (SMRs) are emerging as the next-generation "Game Changer" to overcome the geographical and capital limitations of traditional large-scale nuclear plants.
Why SMRs?
Safety: Utilization of passive safety systems and integral designs.
Efficiency: Modular construction significantly reduces build times.
Versatility: Capable of 24/7 stable power supply, making them ideal for powering AI data centers, hydrogen production, and desalination plants.
The global market reflects this potential. Currently, over 127 types of SMRs are under development worldwide. By 2040, the market is projected to reach approximately KRW 632 trillion ($460 billion), prompting fierce competition among major nations to secure proprietary technologies.
The Strategy: A ₩1.8 Trillion Investment in Manufacturing Innovation
Drawing on insights from the "Korea-U.S. Nuclear Industry Cooperation" framework, Gyeongnam has submitted a proposal to the central government valued at KRW 1.8 trillion. The strategy focuses on Manufacturing Innovation and Supply Chain Resilience, outlined by 4 core strategies, 10 key tasks, and 17 detailed projects.
Key Performance Targets:
Achieve 60% global market share in SMR manufacturing.
Reduce SMR production lead time by 80%.
Achieve 100% localization of manufacturing inspection technologies.
Cultivate 100 "Hidden Champion" companies in the SMR sector.
Seven Key Proposals to the Central Government
To realize this vision, Gyeongnam has outlined seven critical policy proposals, including:
Enactment of the SMR Special Act: Through close cooperation with local lawmakers, this bill successfully passed the National Assembly's standing committee on the 10th, laying the legal groundwork for industry support.
Investment & Tax Incentives: Recognizing the heavy burden of facility investment, the province requested the relaxation of the "Nuclear Industry Growth Fund" criteria and the designation of SMR technology as a "National Strategic Technology" under the Restriction of Special Taxation Act.
Creation of Specialized Complexes: Establishing dedicated industrial zones to resolve corporate grievances in a one-stop manner.
Manufacturing Process Innovation: Large-scale government support to secure cost-competitiveness and "super-gap" technologies.
AI-Integrated Platforms: Developing a symbiotic ecosystem ("AI for SMR" and "SMR for AI") where AI is applied across the entire SMR lifecycle—from design and manufacturing to operation and maintenance.
Strengthening Korea-U.S. Cooperation:
Formation of a bilateral Industrial Cooperation Consultative Body.
Creation of a joint Nuclear Industry Growth Fund.
Joint development of regulatory technologies and a mutual verification system to streamline exports.
Workforce Development: Establishment of specialized graduate schools for high-level R&D talent and practical training programs for immediate field deployment.
Leadership Perspective
Vice Governor Kim, Myeong-ju emphasized Gyeongnam's unique competitive advantage:
"Gyeongnam is home to a robust ecosystem of over 340 nuclear companies, anchored by industry titan Doosan Enerbility. We possess the world's highest level of manufacturing capability and supply chain infrastructure. We are the optimal location for fostering the global SMR market."
He concluded with a forward-looking commitment:
"Through this strategy, we will build a full-cycle support system covering technology, finance, policy, and exports. We are concentrating all capabilities to ensure Gyeongnam leaps forward as the center of Korea's SMR industry and a world-class manufacturing hub."
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