South Korea fast-tracks new nuclear plant and regional industrial electricity price cuts

Minister Kim Sung-hwan of South Korea's Ministry of Climate, Energy and Environment announced that the government will accelerate public hearings for the 12th Electricity Supply Basic Plan, aiming to start the process this month. The plan includes building new nuclear power plants of unprecedented scale – each unit about 1.4 GW – to meet an estimated additional 30 GW of demand from three mega‑projects: a Honam semiconductor cluster, AI data‑center (AIDC) facilities and physical‑AI initiatives. The government also said it may consider adding LNG power generation in the Honam region if needed.

In parallel, the administration will introduce a regional industrial electricity price differentiation system, dividing the country into four zones and further adjusting rates for areas identified as experiencing population decline. The goal is to lower electricity costs for factories outside the Seoul metropolitan area and to launch a dedicated AIDC electricity tariff by the end of the year. While the price cuts could reduce competitiveness gaps, officials noted that Korea Electric Power Corporation (KEPCO) may face higher deficits, and funding could involve a national growth fund or other investment mechanisms. A new Power Management Agency is also slated for creation in the first half of next year to oversee the power system.