China's Nuclear Exports and Korea-U.S. Nuclear Cooperation
Kim Lami
(lamikim@mailbox.org)
Assistant Professor and Director of the Asian Studies Program,
US Army War College
Executive Summary
■ Introduction
○ Interest in nuclear energy is rising in South Korea, as the Yoon administration is seeking to increase domestic nuclear energy production and promote nuclear exports, and also following the United States and South Korea agreement to strengthen cooperation in the nuclear energy sector at the May 2022 summit.
■ New opportunities in the global nuclear market
○ The demand for nuclear energy is rising as countries search for a clean and reliable energy source amid the global campaign to reduce carbon emissions and the energy security crisis triggered by Russia’s invasion of Ukraine. While the demand for nuclear energy is rising, Russia, which holds the largest share in the global nuclear market, is being pushed out. Thus, opportunities have emerged for South Korea and the U.S. to fill the market gap.
■ China's Rise in the World Nuclear Market
○ However, China, which is rising as a strong rival in the global nuclear market based on its advanced technology, price competitiveness, and financing capacity, is most likely to take advantage of these new opportunities. As China’s nuclear exports may increase its political and economic influence around the world, posing a threat to the U.S., the U.S. is seeking to thwart China’s nuclear exports.
■ Necessity and Challenges of Nuclear Cooperation between South Korea and the U.S.
○ In this endeavor, the U.S. needs to cooperate with its allies. The U.S. has a comparative advantage in nuclear technology and safe operation and management of nuclear power plants, but lacks recent experience in constructing them. Meanwhile, South Korea has the capacity to build nuclear power plants relatively quickly and inexpensively, but the U.S. is better suited for the stable operation of nuclear power plants. South Korea also lacks the ability to supply nuclear fuel. Therefore, South Korea and the U.S. should seek to complement each other's strengths and weaknesses to enhance their comparative advantage against China in the global nuclear power market.
○ For their effective nuclear cooperation, South Korea and the U.S. need to iron out remaining issues, such as intellectual property rights, role sharing and non-proliferation-related export restrictions.
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