Stung by scandal, South Korea weighs up cost of curbing nuclear power

Reuters ^ | 10/28/2013 | Cho Mee-young

[TexGrill]

(Reuters) - It started with a few bogus safety certificates for cables shutting a handful of South Korean nuclear reactors. Now, the scandal has snowballed, with 100 people indicted and Seoul under pressure to rethink its reliance on nuclear power.

A shift away from nuclear, which generates a third of South Korea's electricity, could cost tens of billions of dollars a year by boosting imports of liquefied natural gas, oil or coal.

Although helping calm safety concerns, it would also push the government into a politically sensitive debate over whether state utilities could pass on sharply higher power bills to households and companies.

Gas, which makes up half of South Korea's energy bill while accounting for only a fifth of its power, would likely be the main substitute for nuclear, as it is considered cleaner than coal and plants can be built more easily near cities.

"If the proportion of nuclear power is cut, other fuel-based power generation has to be raised. If we use LNG, the cost will definitely go up," said Hwang Woo-hyun, vice president of state-run utility Korea Electric Power Corp (KEPCO).

KEPCO owns Korea Hydro and Nuclear Power Co Ltd (KHNP), which operates the county's nuclear reactors, and also has a quarter stake in Korea Gas Corp (KOGAS), the world's largest corporate buyer of LNG.

The extra cost to Asia's fourth-largest economy of importing

[TexGrill]

Global business tip

[gunsequalfreedom]

The sooner they get off nuke power the better. Unfortunately, their waters are already messed up by Fukishima. What a giant disaster Fukushima is for Japan and nearby countries that share those waters.

[GeronL]

They are already having power shortages because it’s a government monopoly, this won’t help