Nuclear Stocks Jump as South Korea Considers Adding New Plant

(Bloomberg) -- Nuclear power-linked stocks surged in South Korea after the nation confirmed it will consider construction of a new atomic plant under plans to expand electricity generation.

A review will examine the potential addition of a further nuclear facility following a committee meeting Monday hosted by Trade, Industry and Energy Minister Lee Chang-yang, his department said in a statement. 

Korea Electronic Power Industrial Development Co. surged as much as 30% in Tuesday trading in Seoul to lead gains across the sector. Bosung Power Technology Co. rose as much as 14%, Kepco Engineering & Construction Co. by as much as 13% and Woojin Inc. as much as 18%.

President Yoon Suk Yeol is a strong advocate of nuclear power and favors an expansion of the technology over deployments of renewable energy. Proposals for the nation’s future energy mix released in January call for nuclear to account for almost one-third of generation capacity by 2030, up from about 24% in earlier drafts. Nuclear accounted for about 26% of generation in 2021, according to data compiled by BloombergNEF.

South Korea’s push for more nuclear generation comes amid a broader revival of the power source. Japan’s government aims to fire up stalled reactors and explore new technology, while nations including China, the UK and France also have ambitious to add more nuclear. The Philippines, India and Indonesia are among emerging economies considering how the technology could help rising energy demand.

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