As the government has designated small modular reactors (SMRs) as a core technology in the future clean energy sector, attention is growing on the domestic nuclear power industry. The government aims to commercialize light-water SMRs by 2035, pursuing research and development, demonstration, supply chain construction, and institutional improvements simultaneously.

■ SMR Included Among the Seven Future Growth Engine SEED Projects

Through the seven future growth engine SEED projects announced last month, the government selected SMRs, alongside nuclear fusion and renewable energy, as a core technology in the future clean energy sector. The government's timetable is to commercialize light-water SMRs by 2035 and begin construction of non-light-water SMRs in the 2030s. It plans to accelerate design and demonstration through public-private cooperation and advanced technologies, and to plan large-scale projects through a collaborative framework involving relevant ministries and the private sector.

■ Five-Year Master Plans and Annual Implementation Plans... Laying the Institutional Foundation

An institutional foundation to support the SMR industry will also be established. The Ministry of Science and ICT will formulate a master plan for SMR system development every five years and prepare annual implementation plans based on it. The master plan will include policy goals, promotion strategies, and implementation measures, as well as the nuclear fuel supply chain system, securing public acceptance, training of specialized personnel and education, and institutional improvements. Through an enforcement decree, matters related to supply chain technology development and the designation and operation of SMR system R&D special zones will also be incorporated into the master plan.

A governance system to coordinate SMR development policy will also be established. The government plans to create a collaborative framework involving relevant ministries and the private sector, and to pursue the discovery of large-scale public-private joint projects and improvements to laws and institutions.

■ Doosan Enerbility, Woori Technology, BHI, and Orbitech: Reviewing Business Areas by Company

As the government's SMR promotion policy becomes more concrete, the stock market is paying close attention to the business moves of companies linked to the nuclear power industry, including Doosan Enerbility, Woori Technology, BHI, and Orbitech.

Doosan Enerbility has manufacturing capabilities in core nuclear power equipment, including the fabrication of nuclear main equipment and forged components such as main forgings, and is expanding cooperation with overseas SMR companies. In particular, if the SMR market shifts from the design stage to actual fabrication and construction, the core equipment supply chain could emerge as an important area.

Woori Technology's main business area is nuclear instrumentation and control systems. As it has handled systems necessary for nuclear plant operation and control, whether it will participate in the instrumentation and control field as SMR business expands is a point to watch.

BHI conducts business centered on power generation equipment. It is pursuing business expansion in nuclear power and power generation equipment, and whether related businesses materialize in the process of the government building an SMR industry ecosystem is a subject of interest.

Orbitech is engaged in radiation management at nuclear power plants and related inspection and technology businesses. While its business area differs from companies that directly manufacture SMR main equipment, it is a company that can be examined from the perspective of the nuclear industry ecosystem, including plant operation and maintenance.

■ Government Policy Announcements and Corporate Performance Must Be Distinguished... Points to Watch

However, the fact that the government has announced an SMR promotion plan must be distinguished from individual companies' actual orders and performance. Since each company has different areas of nuclear power business and different revenue proportions, care is needed in simply grouping them together as the same SMR beneficiary stocks.

The market's future point of observation is how concretely the government's master plan and annual implementation plans translate into actual R&D and demonstration projects. Once the scale of public-private joint projects, participating companies, demonstration schedules, and supply chain construction plans are finalized, the roles of domestic nuclear-related companies are expected to become clearer.

[SMR-related business areas and actual business proportions may differ for each company. Government policy does not directly translate into individual companies' orders or performance. This is not a recommendation to invest in any particular stock, and the final decision on investment and the responsibility for it rest with the investor. This article was partially assisted by AI in the writing process.]