Nuclear-powered ships seen as next growth engine for Korean shipbuilders

South Korea's shipbuilding industry could turn to nuclear-powered vessels as a new growth engine once the current boom cycle winds down, an industry expert said.

"Korea is the only country that can combine the nuclear and shipbuilding industries into one," Shin Eon-su, former executive vice president of Daewoo Shipbuilding (now Hanwha Ocean), said Wednesday at the 16th Shipping, Shipbuilding and Logistics Stabilization Forum, held at the National Assembly Library.

Shin named HD Hyundai Heavy and Samsung Heavy Industries as the country's leading companies in developing nuclear-powered ships. Both are moving quickly on the technology. HD Hyundai Heavy has received certification from the American Bureau of Shipping for the design of nuclear-powered container ships and car carriers. Samsung Heavy Industries has secured certification for a floating platform design powered by small modular reactors.

Shin said the domestic shipbuilding industry can turn nuclear-powered ships into its next growth engine, particularly as competition intensifies worldwide to develop the Arctic shipping route. "The icebreakers Russia is developing are too small to be deployed on Arctic routes," he said. "Applying nuclear power to merchant vessels has never been attempted anywhere in the world, and Korea can be the first to develop an icebreaking merchant ship that operates on the Arctic route."

Nuclear-powered ships also hold a competitive edge given the industry's growing need for eco-friendly, high-efficiency energy, Shin said. "If nuclear propulsion succeeds technologically during this energy transition period, it could replace conventional fuel across the commercial shipbuilding market," he said. "Nuclear power also outperforms conventional engines or electric propulsion in energy efficiency, especially as ships grow larger and require long voyages such as those on the Arctic route."

Shin added that while the vision for nuclear-powered ships is becoming a reality, many steps remain before the market can fully open. He cited classification society and nuclear-related regulations in each country, the International Maritime Organization and securing uranium fuel as key challenges ahead. "This is not something private companies can handle alone," he said. "The nuclear industry and the government need to solve this together under a fast-track approach."

There were also calls to secure highly enriched uranium, the fuel needed for nuclear-powered ships, in advance. South Korea and the United States issued a joint statement earlier this year following a presidential summit between the two countries. It said Washington would support Seoul's private-sector uranium enrichment efforts, but follow-up discussions have yet to take place.

Baek Jong-hyuk, director of the Korea Institute of Nuclear Safety, said South Korea needs to speed up its uranium supply strategy. "In the United States, the military itself is moving to deploy reactors at military bases, and a presidential executive order already spells out how to secure the nuclear fuel and uranium needed for that," he said. "Investment and expanded facilities for uranium enrichment companies are already underway there."