KEPCO, POSCO join hands for development of nuclear energy

The Korea Electric Power Corporation and the world’s second largest steelmaker (in terms of market value) POSCO agreed on May 3 to work together to locally manufacture key materials needed at nuclear power plants, and signed a Memorandum of Understanding to formalize that agreement.

In signing the agreement, the two sides concurred on the importance of raising national competitive power in nuclear energy development.

Korea started its first nuclear power plant operation in Busan in 1978. By the late 1990s, it had succeeded in developing almost all core technologies to develop nuclear energy. But the localization of materials needed at nuclear plants is low, just 76 percent at present.

Some key materials at nuclear power plants are wholly sourced through exports, which is likely to hamper national competitiveness in the nuclear energy sector. This is more so when considering the increasing demand for nuclear power plant construction worldwide.

Through their joint work, KEPCO and POSCO expect to boost the localization rate up to 90 percent in the near future.

Also according to the agreement, KEPCO will provide POSCO with knowhow and international contacts earned from the 40-year-long operation of nuclear plants, while POSCO will devote itself to securing scarce resources and developing core new materials.