South Korean nuclear stocks surge amid U.S. reactor construction talks

South Korean stocks in the nuclear power sector saw significant gains following reports that South Korea and the United States are discussing a project to construct up to eight large-scale nuclear reactors in the U.S. The proposal suggests allocating $120 billion of a $200 billion strategic investment fund—separate from a $150 billion shipbuilding investment—toward this nuclear initiative.

Major construction and engineering firms, including Daewoo E&C, KEPCO E&C, Doosan Enerbility, and Hyundai E&C, experienced stock price surges. Daewoo E&C rose by over 12%, while KEPCO E&C saw gains exceeding 13% during intraday trading.

Despite the market enthusiasm, the South Korean Ministry of Trade, Industry and Energy clarified that while discussions are ongoing to identify nuclear projects, specific details have not yet been finalized. Key factors such as site selection, reactor types, and construction timelines remain undetermined. A memorandum of understanding (MOU) could potentially be signed as early as the 18th, pending final coordination between the two nations.