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Korea Herald
3 days ago
- Business
- Korea Herald
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).'
Japan Times
3 days ago
- Business
- Japan Times
Japan to set up body to improve anime industry working conditions
The industry ministry said Tuesday that it will set up a third-party organization to improve the working conditions of animation industry workers. The move is part of a five-year action plan aimed at boosting overseas sales of Japanese content such as manga and video games to ¥20 trillion ($138 billion) in 2033. The Japanese anime industry has been facing chronic labor shortages linked to poor working conditions that have led to a decrease in the number of productions. The ministry aims to help the content industry release high-quality works abroad in a sustainable way by allowing creators to work without anxiety. The action plan also included promoting visits by fans to places appearing in anime stories and setting up an organization to support the overseas expansion of Japanese content.
The Hindu
16-06-2025
- Business
- The Hindu
Wholesale price inflation dips to 0.39% in May
Wholesale price inflation (WPI) declined to 0.39% in May as prices of food articles, manufactured products, and fuel eased, government data showed on Monday (June 16, 2025). WPI-based inflation was 0.85% in April. It was 2.74% in May last year. "Positive rate of inflation in May 2025 is primarily due to increase in prices of manufacture of food products, electricity, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and non-food articles, etc," the Industry Ministry said in a statement. As per the WPI data, food articles saw a deflation of 1.56% in May, against a deflation of 0.86% in April, with vegetables seeing a sharp drop. Deflation in vegetables was 21.62% in May, compared to 18.26%in April. Manufactured products, however, saw inflation at 2.04%, compared to 2.62% in April. Fuel and power, too, saw a deflation of 2.27% in May, compared to a 2.18% inflation in April. The Reserve Bank of India (RBI) mainly takes into account retail inflation while formulating monetary policy. Data released last week showed, retail inflation eased to over six-year-low of 2.82% in May mainly due subdued food prices. The RBI this month cut benchmark policy interest rates by a sharp 0.50% to 5.50% amid easing inflation.
The Star
02-06-2025
- Business
- The Star
Steelmakers in South Korea, Vietnam tumble on Trump's new tariffs
SEOUL/SINGAPORE: Shares in South Korean and Vietnamese steelmakers, major Asian exporters of the metal to the United States, dropped on Monday after U.S. President Donald Trump said he would double tariffs on imported steel and aluminium to 50%. Trump announced on Friday the new steel and aluminium levies, which take effect on June 4, intensifying a global trade war just hours after he accused China of violating an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals. Steel industry experts said that while the increased tariff would cause significant disruption for major exporters to the United States, the rates could go down in light of some of Trump's trade policy reversals. "Frequent shifts in the Trump administration's tariff policies introduce considerable uncertainty regarding the actual impact ... I think the final result will be far lower than initially projected, especially concerning its duration," said Chelsea Ye, senior analyst at metals research firm McCloskey. South Korea's Industry Ministry said on Monday it would respond to the 50% tariff on steel products as part of its trade discussions with Washington in order to minimise the impact on industry. South Korea was the fourth-biggest exporter of steel to the United States last year, behind Canada, Mexico and Brazil, according to American Iron and Steel Institute data. South Korea's Industry Ministry said in a statement that it had held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel . Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 8%. In Vietnam, major steelmakers Hoa Sen Group and Nam Kim Steel fell 2.8% and 3.4% respectively. Vietnam Steel Corp also fell 2.7%. Vietnam's exports of steel and steel products to the U.S. fell 27% in the first four months of this year, government data showed. The 50% tariffs will add to the challenges facing Korean steel exporters, which have refrained from sharply boosting exports to the U.S. to avoid Washington's scrutiny, despite rising U.S. steel prices, an industry executive told Reuters. "It will be a burden to exporting companies if there are no additional steel price increases in the U.S," he told Reuters, asking not to be identified due to the sensitivity of the issue. Despite tariffs, South Korea's steel shipments to the United States rose 12% in April from a year earlier, according to trade data. Steel and aluminium tariffs were among the earliest Trump imposed when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the U.S. went into effect on March 12. Industry officials said the tariffs had increased U.S. steel prices, affecting several sectors, including home appliances, cars, and construction. In Europe, Germany's second-biggest steelmaker Salzgitter warned that Washington's tariff policy was dealing a severe blow to European industry. TRADE TALKS South Korea, a major U.S. ally, has called for an exemption from tariffs on steel, autos and others items, during talks with the United States. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum ahead of elections on Tuesday. In late March, Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana in response to U.S. tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project. In India, which relies heavily on the U.S. for aluminium exports, industry experts also warned of a major hit. "This is going to have a detrimental impact," B.K. Bhatia, director-general at the Federation of Indian Mineral Industries, the country's leading mining body, told Reuters. "The U.S. is the biggest market for Indian aluminium. Government has been negotiating so we are hopeful that with talks, the tariffs will come down." The U.S. is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of imported steel in 2024, according to the Department of Commerce. As a result, the new tariffs will likely increase steel prices across the board, hitting industry and consumers alike. "The latest hike will prompt these sellers to renegotiate with their U.S. buyers on how to, and who, will shoulder the extra 25% cost," said Thaiseer Jaffar, founder of Dubai-based steel industry event organiser Global Steel Summit. - Reuters
News24
02-06-2025
- Business
- News24
Market fall-out as Trump doubles steel, aluminium tariffs
• For more financial news, go to the News24 Business front page. Shares in South Korean and Vietnamese steelmakers, major Asian exporters of the metal to the United States, dropped on Monday after US President Donald Trump said he would double tariffs on imported steel and aluminium to 50%. Trump announced on Friday the new steel and aluminium levies, which take effect on June 4, intensifying a global trade war just hours after he accused China of violating an agreement with the US to mutually roll back tariffs and trade restrictions for critical minerals. Steel industry experts said while the increased tariff would cause significant disruption for major exporters to the US, the rates could go down in light of some of Trump's trade policy reversals. "Frequent shifts in the Trump administration's tariff policies introduce considerable uncertainty regarding the actual impact ... I think the final result will be far lower than initially projected, especially concerning its duration," said Chelsea Ye, senior analyst at metals research firm McCloskey. South Korea's Industry Ministry said on Monday it will respond to the 50% tariff on steel products as part of its trade discussions with Washington in order to minimise the impact on industry. South Korea was the fourth-biggest exporter of steel to the United States last year, behind Canada, Mexico and Brazil, according to American Iron and Steel Institute data. South Korea's Industry Ministry said in a statement that it had held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel . Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 6.3% in morning trade. In Vietnam, major steelmakers Hoa Sen Group and Nam Kim Steel fell 2.8% and 3.4% respectively. Vietnam Steel Corp also fell 2.7%. Vietnam's exports of steel and steel products to the U.S. fell 27% in the first four months of this year, government data showed. The 50% tariffs will add to the challenges facing Korean steel exporters, which have refrained from sharply boosting exports to the US to avoid Washington's scrutiny, despite rising US steel prices, an industry executive told Reuters. "It will be a burden to exporting companies, if there are no additional steel price increases in the U.S," he told Reuters, asking not to be identified due to the sensitivity of the issue. Despite tariffs, South Korea's steel shipments to the United States rose 12% in April from a year earlier, according to trade data. Steel and aluminium tariffs were among the earliest Trump imposed when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the US went into effect on March 12. Industry officials said the tariffs have increased US steel prices, affecting several sectors, including home appliances, cars, and construction. Trade talks South Korea, a major US ally, has called for an exemption from tariffs on steel, autos and others items, during talks with the United States. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum ahead of elections on Tuesday. In late March, Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project. In India, which relies heavily on the US for aluminium exports, industry experts also warned of a major hit. "This is going to have a detrimental impact," B.K. Bhatia, director-general at the Federation of Indian Mineral Industries, the country's leading mining body, told Reuters. "The US is the biggest market for Indian aluminium. Government has been negotiating so we are hopeful that with talks, the tariffs will come down." The US is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of imported steel in 2024, according to the Department of Commerce. As a result, the new tariffs will likely increase steel prices across the board, hitting industry and consumers alike. "The latest hike will prompt these sellers to renegotiate with their US buyers on how to and who will shoulder the extra 25% cost," said Thaiseer Jaffar, founder of Dubai-based steel industry event organiser Global Steel Summit.
