President Yoon Suk-yeol visits a nuclear power plant of Doosan Enerbility in Changwon, South Gyeongsang Province, June 22. Korea Times file

By Lee Kyung-min

The competitive edge of Korea's nuclear power industry has crashed by as much as 40 percent compared to before the "nuclear phase-out policy" took effect under the former Moon Jae-in administration, according to the country's business lobby, Monday.

About four years will be needed to recover the largely destroyed industrial ecosystem, the Federation of Korean Industries (FKI) added. Increasing the number of highly skilled nuclear energy experts should be top priority, as well as deregulation to help businesses find new projects.

A FKI survey of 31 local nuclear energy firms showed over half, or 51.6 percent, of the respondents said the competitive edge of the industry sank by a range of between 30 percent and 40 percent over the past five years. About a fifth, or 22.6 percent, pinpointed the range between 20 percent and 30 percent.

Over a third, or 35.7 percent, cited personnel shortages as the largest concern. Data from the Korea Atomic Industrial Forum showed the number of students that majored in nuclear energy-related departments was 2,165 in 2021, down 22 percent from 2,777 in 2017.

Other concerns included a lack of operating funds (30.4 percent), supply chain disruptions due to bankruptcies of their partner firms (17.9 percent) and inability to secure next-generation growth technologies (12.5 percent).

About half, or 46.9 percent, said businesses finding work will be the key driver to recovering industrial competitiveness.

This was followed by the need to simplify licensing and approval processes involving the construction of nuclear power plants (28.1 percent), lowering borrowing costs and increasing access to financing (17.2 percent). Some 7.8 percent chose extending government assistance to firms with shaky financials.

Over a quarter, or 27.4 percent, said the government should map out long-term programs to nurture the desired skills in students.

A similar number of respondents, or 24.2 percent, said reducing dependence on overseas nuclear technologies and products is needed.

Over 19 percent of the respondents said research and development activities should be incentivized.

Some 16 percent said government policies should help local firms with overseas expansion.

The FKI said Korea should pursue measures promptly to help revitalize the stagnant industry, in a move to seek the best possible outcome from the recent global wave of recognizing nuclear power as a green energy source.

"Promising local firms will be able to find growth opportunities from around the world, lifted by rapid growth of the global nuclear energy industry," a KFI official said. "We need to embrace appropriate measures to better prepare for the rapidly changing global nuclear energy landscape."