Doosan to invest 5.1 trillion won in Yeongnam region, targeting SMRs and next-generation energy

By Park Hye-won, The Herald Business

Doosan plans to invest around 5 trillion won ($3.22 billion) in energy industries — centered on small modular reactors — to drive advanced industrial growth in the Yeongnam region. The move signals the conglomerate's strategy to enter the next-generation energy supply business in earnest, amid mounting concerns over the power demands of the AI industry.

According to the Ministry of Economy and Finance on Friday, Doosan Group plans to invest approximately 5.1 trillion won in the Yeongnam region across SMRs, large nuclear power plants, and gas and hydrogen turbines. The investment is part of the Lee Jae Myung administration's "Great Leap Forward Three Mega-Projects," which aims to foster strategic industries in three designated regional zones. Yeongnam, one of the three zones, has drawn particular attention as a nuclear industry hub after the government recently designated Yeongdeok-gun in North Gyeongsang Province as a new nuclear power plant site.

Doosan Enerbility, the group's core affiliate, is in effect the only domestic manufacturer of key SMR components in South Korea. The company has focused primarily on overseas nuclear markets but has recently turned its attention to the domestic market as construction of new nuclear plants at home gains momentum.

Doosan Enerbility aims to secure a production system capable of manufacturing 20 SMR units per year by 2031. To that end, it is committing a total of 806.8 billion won to build a dedicated SMR factory at its Changwon plant, optimize existing facilities, and establish advanced manufacturing infrastructure.

The Changwon area is also expected to see closer industry-academia collaboration centered on Doosan Enerbility. Changwon National University has been selected for a government-backed national research institute program providing approximately 140 billion won in funding over 10 years, and the university is currently working to establish a dedicated SMR research institute. It plans to share advanced AI-driven manufacturing technologies applicable to nuclear power plants with local companies, including Doosan Enerbility.

The government has also pledged to support large-scale corporate investment through deregulation and other measures. On SMRs specifically, it plans to significantly expand tax support — including introducing a domestic production tax credit and reviewing the designation of SMRs as a national strategic technology.