Seoul’s second U-turn on nuclear power will endure

Significance

He is reversing his liberal predecessor Moon Jae-in’s planned phase-out of nuclear power and backing state-owned Korea Hydro & Nuclear Power (KHNP)’s bid to become a major exporter of reactors.

Impacts

• With its long lead times, the nuclear sector cannot afford further U-turns.
• Samsung, Hyundai and SK will seek varied roles, both as plant constructors and investors in the emerging small-reactor sector.
• Activist investors are starting to treat South Korea as a laggard on climate change; reviving nuclear power will help.
• Ties with the United Arab Emirates illustrate Seoul’s strategy of offering cooperation on nuclear power in return for access to oil.