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Busan Steps Up to Lead Domestic and Global Markets by Establishing a Nuclear Decommissioning Industry Ecosystem

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Busan Metropolitan City (Mayor Park Heong-joon) announced that, in response to increasing global demand and market size for nuclear decommissioning, as well as the planned dismantling of Kori Unit 1 and Wolsong Unit 1, it has been actively working to prepare for the domestic decommissioning market.

The city is currently pursuing various projects to foster the nuclear decommissioning industry as a new energy sector.

To date, Busan has undertaken several initiatives to build an ecosystem for nuclear decommissioning, including:
▲ the establishment of the Korea Radioactive Waste Research Institute;
▲ the construction of a support center for the production of auxiliary equipment for small modular reactors (SMRs);
▲ and the promotion of energy technology-sharing universities based on the local nuclear industry.

In particular, Busan has explicitly stipulated the participation of local companies in joint and subcontracting arrangements through close cooperation with Korea Hydro & Nuclear Power.

Following the approval of the Kori Unit 1 decommissioning by the Nuclear Safety and Security Commission on June 26, the domestic nuclear decommissioning market has officially opened. As the first step, KHNP issued the main bid notice for the dismantling of the non-controlled internal yard at Kori Unit 1 on July 17.

After repeated on-site visits to KHNP and the Kori Unit 1 site, holding various briefing sessions and meetings, and participating in external seminars and discussions, Busan’s efforts enabled the successful inclusion of provisions requiring local company participation in joint and subcontracting arrangements.

As a result, forming a joint venture with a local company in Busan has become a requirement for joint contracts. Local companies with at least a 30% equity share are exempt from stringent performance requirements and only need to meet licensing requirements to participate in joint contracts.

Furthermore, it has been stipulated that more than 30% of subcontracting must involve companies from the Gijang-gun area. If the ratio is not met, the bidder will receive a penalty in the evaluation. This measure substantially ensures local companies’ participation in the nuclear decommissioning market.

Meanwhile, KHNP will hold a project briefing session tomorrow (July 25) at 10:00 AM on the 4th floor of the main conference room at the Integrated Support Center of the Kori Nuclear Power Plant.

The session will provide an overview of the project, scope of work, contract details, and important notes regarding the dismantling of the non-controlled internal yard.

The bid is scheduled to close at 11:00 AM on August 28.

Busan plans to continue its multifaceted efforts to ensure local companies can participate stably in the nuclear decommissioning market, which is expected to become more active.

The city will strive to establish a foundation for local companies to take part in decommissioning of controlled areas in close collaboration with KHNP.

Additionally, Busan will focus on building infrastructure for nuclear decommissioning, fostering companies, training skilled professionals, and promoting industry-academic-research cooperation to ensure the stable participation of local companies in the market.

Kim Ki-hwan, Director General of the Citizens’ Safety Office, stated, “Through this bid, we have laid the groundwork for local nuclear-related companies in Busan to build their track record in the domestic nuclear decommissioning market. Based on accumulated experience, we expect that Busan’s nuclear decommissioning industry will eventually expand into the global market, which is worth an estimated 550 trillion KRW. We encourage active participation and interest from local nuclear companies in this project.”