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REPUBLIC OF KOREA

(updated on Dec. 2006)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

The Korean Peninsula is located on the eastern edge of the Asian continent and is covered by mountains over 70% of its land area. The Peninsula has been divided in two since 1945, consisting of the Republic of Korea, commonly referred to as South Korea and the Democratic People's Republic of Korea, otherwise known as North Korea. The Korean Peninsula is 222,540 km2, while the administrative area of South Korea is 99,646 km². The Republic of Korea (Korea) lies on the southern part of the Korean peninsula neighboring China and Russia. The terrain is mostly rugged and mountainous with only 21% of the land being arable.

Located in the East Asian Monsoon belt, Korea has a temperate climate with four distinct seasons. During the winter, from December to January, it is bitterly cold and dry under the dominant influence of the Siberian air mass. Meanwhile summer, from June to August, is hot and humid with frequent heavy rainfalls associated with the East-Asian Monsoon. The transition seasons, spring and fall, are mild and serene with fairly periodic passages of the transient high and low pressure systems. Annual precipitation is about 1,500mm in the southern region and about 1,300mm in the central region. More than a half of the total rainfall is concentrated in the summer season, while the winter precipitation constitutes less than 10% of the total.

Korea has its own language, Korean, with a unique and creative alphabet, called Hangul.

As of 2005, the Republic of Korea had a population of 48.3 million inhabitants (Table 1).

Korea is an energy resource-poor country. Consequently, energy security is one of the primary concerns of the Korean government. There are no significant oil or gas resources and only limited anthracite coal deposits. Uranium deposits identified are so low grade and uneconomical that development has never been made.

TABLE 1. POPULATION INFORMATION

1.1.1.  Economic Indicators

The Korean economy has grown remarkably over the last thirty years. Korea's Gross Domestic Product (GDP) growth rate has averaged nearly 7% per year over the period of 1990 to 2005 and GDP reached 788 billion US$ in 2005.

Foreign exchange reserves have substantially recovered (International Reserves amount to US$ 210.4 billion as of December, 2005), the Foreign Currency Reserves has nearly doubled the amounts in 2000, the stock market has revived strongly, interest rates have fallen, the balance of payments in the current account has staged a remarkable turnaround and there has been an upsurge of inward investment. Table 2 shows the historical GDP statistics.

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

1.1.2.  Energy Situation

Korea has poor energy resources.

Therefore, the primary objective of Korea's energy policy has been to secure an economical and stable supply of energy by diversifying energy sources. At present, environment-friendly energy policies gained ground due largely to a progress in Climate Change Convention negotiations. The impact of the two oil crises in the 1970s on the Korean economy was severe. In response, the government tried to limit the annual increase in energy consumption to about 7 ~ 8%. By the 1990s, however, consumption was growing at more than 10% annually.

Table 3 shows the Korean energy reserves and Tables 4 and 5 the primary and final energy consumption, respectively in Korea. As in many other countries that are not endowed with fossil fuel reserves, nuclear power is considered to be the most reliable energy source capable of meeting the soaring energy demand necessary for economic development (i.e. an economic growth rate of some 4.4% per year). Korea has, consequently, chosen nuclear power as one of its major energy sources. Under the government's Power Development Program, nuclear power is to become the major energy source by 2020 supplying about 43.4 percent of the nation's total electrical power.

TABLE 3. ESTIMATED ENERGY RESERVES

TABLE 4. PRIMARY ENERGY CONSUMPTION

TABLE 5. FINAL ENERGY CONSUMPTION

1.2.  Energy Policy

The key objectives of Korea's general energy policies can broadly be described under four main headings:

• Korea has a high level of dependency on energy imports and particularly oil. Thus, the primary objective in energy policies has been to improve the country's energy security;
• The second concern has been the desire to ensure that the Korean energy sector is managed in such a way as to provide low cost energy supplies to encourage and sustain economic development and growth;
• The third one is energy conservation. However, energy conservation is now attracting increasing attention as a tool for improving energy,
• The fourth major aspect of energy policies is sustainable energy development. Harmonization of development and environmental preservation is the most important concern.

1.3.  The Electricity System

1.3.1.  Structure of the Electricity Sector

The ministries chiefly responsible for developing electricity policy in Korea are the Ministry of Commerce, Industry and Energy (MOCIE) in consultation and close co-operation with the Ministry of Planning and Budget (MPB) and six generation companies (GENCOs) along with the Korea Electric Power Corporation (KEPCO) among others. With energy being regarded as a key component of Korea's rapid economic development, the government has maintained a strong presence in the sector.

MOCIE, through the direct or indirect government ownership of energy companies, utilities and several energy research institutes, has maintained a high degree of control in all aspects of energy policy development and implementation.

MOST has the overall responsibility for ensuring nuclear safety through regulatory activities and related R&D.

In July 1998, in order to enhance economic efficiency, to improve the quality of public services, and to reduce the extent and level of the government's direct involvement in economic activities, the Korean government announced a privatization plan for state-owned enterprises (SOEs) including KEPCO, Korea Heavy Industries and Construction Co., and KEPCO’s subsidiaries (KOPEC, KPS, etc.).

Following the plan, the government announced the “Basic Plan for Restructuring of the Electricity Supply Industry” to introduce competition into the electricity supply industry in January 1999, as a precondition to the privatization, and sold a 5% stake of KEPCO to overseas investors in March 1999. According to the restructuring plan, KEPCO's power generation sector has been split-up in April 2001, into six generation companies (GENCOs), i.e. five non-nuclear GENCOs which were privatized step-by-step, and one hydro-nuclear GENCO which is called KHNP (Korea Hydro & Nuclear Power Co., Ltd) which remained as a subsidiary of KEPCO in consideration of the importance of nuclear safety.

In the long-run, as the restructuring plan shows, KEPCO will undergo a split-up of the power distribution sector into several power distribution companies thereby introducing competition in the wholesale and retail sectors, and opening-up of the transmission network to guarantee open access for private enterprises, thereby creating a fair competitive environment. But, in June 2004 the government decided to hold a plan to partition in abeyance and sell off the power supply division from the state-run Korea Electric Power Corp. (KEPCO). However, the government will continue to push for the ongoing privatization of KEPCO’s thermal power plant division. The government decision is expected to influence its original plan to reconstruct the power industry.

While most of South Korea’s generating capacity is controlled by the subsidiaries of KEPCO, a few independent power producers (IPPs) exist. GS Power owned by the GS-CALTEX with 100% stakes operates 900 megawatt (MW) plants in Anyang and Puchon. GS EPS owned by GS Group operates a 500-megawatt(MW) plant in Bugok at Asan Bay. POSCO Power owned by POSCO with 100% stakes operates 1,800 megawatt(MW) plants in Incheon. Nearly all of IPPs plants are combined cycle.

1.3.2.  Decision Making Process

Under the vertically integrated system of electricity power industry in Korea, the establishment of the Long Term Power Development Plan by the Government and KPX had successfully balanced the electricity supply with the demand.

However, with the progress of restructuring, the competitive market mechanism has been introduced into the domestic electricity supply industry since April 2001. Thus the function of the Long-term Power Development Plan was inevitably changed into non-binding guidelines or reference under the deregulated scheme.

The Korean Government, in consultation with KPX(Korea Power Exchange), establishes the Basic Plan of Long-term Electricity Supply and Demand, the former Long Term Power Development Plan, as they did biennially before. However, the Plan is established not as a binding force but as a tool providing market participants with appropriate information and market based solution.

1.3.3.  Main Indicators

The total installed capacity in 2005 was 62,258 MW(e), which accounts for an additional 41,237 MW(e) since 1990. The share of oil-fired power plants rapidly decreased from 65.5% in 1970 to 7.6% in 2005. Instead, nuclear energy became one of the largest electric power sources in Korea, with a 28.5% share. LNG, as a peak source, increased to 26.4%. This fuel mix shows a remarkable improvement in fuel diversity compared with the heavy reliance on oil that prevailed until the early 1980s. The composition of installed capacity by power sources is shown in Figure 2.

The total power generation in 2005 increased from 107,670 GWh in 1990 to 364,639 GWh. This breaks down to 146,779 GWh (40.3%) from nuclear power, 133,659 GWh (36.7%) from coal-fired power, 17,731 GWh (4.9%) from oil-fired power, 58,118 GWh (15.9%) from LNG combined power, and 5,189 GWh (1.4%) from hydro power. Table 6 gives the historical electricity production and installed capacities. The energy and economic data are given in Table 7.

TABLE 6. ELECTRICITY PRODUCTION AND CAPACITY

TABLE 7. ENERGY RELATED RATIOS

2.  NUCLEAR POWER SITUATION

2.1.  Historical Development and current nuclear power organizational structure

2.1.1.  Overview

Nuclear activities in Korea were initiated in 1957 when Korea became a member of the IAEA. In 1959, the Office of Atomic Energy was established as a government organization in conformity with the global trend toward developing peaceful uses of atomic energy. The Atomic Energy Law was promulgated in the preceding year.

The Republic of Korea has carried out a very ambitious nuclear power program since the 1970's in parallel with the nation's industrialization policy, and has maintained a strong commitment to nuclear power development as an integral part of the national energy policy aimed at reducing external vulnerability and insuring against global fossil fuel shortage. Currently, Korea has one of the most dynamic nuclear power programs in the world.

During the early years of nuclear power development, power plants were constructed mostly through "Turn-Key" contracts, providing little opportunity for domestic industries to participate in the construction. Since then, however, domestic participation in overall construction management, design, equipment supply, and civil construction has continuously increased through the adoption of the "Non Turn-Key" approach. A high degree of technological self-reliance was achieved through the construction of Yonggwang Nuclear Units(YGN) 3 and 4 in various fields of the nuclear industry. At present, nuclear power plant technology and related fuel cycle technologies are maturing.

The first domestic reactors were 1000 MW(e) PWRs Ulchin Unit 3 & 4, the so called Korea Standard Nuclear Power Plant (KSNP), which entered commercial operation in 1998. The Ulchin Units 3 and 4 became the reference plant for KSNP plants thereafter. Six more KSNP plants are being built at Ulchin, Shin-Kori and Shin-Wolsong as shown in Table 8.

2.1.2.  Current Organizational Chart(s)

In Korea, nuclear-related activities are planned and carried out by various organizations such as the Atomic Energy Commission (AEC), the Nuclear Safety Commission (NSC), the Ministry of Science and Technology (MOST), and the Ministry of Commerce, Industry and Energy (MOCIE).

Under the Atomic Energy Act, the AEC is the highest decision-making body on policy issues and utilization of nuclear energy. The AEC is composed of nine to eleven members representing various sectors of the government, academia and industry. The chairman of the AEC is the Prime Minister.

The MOST has the overall responsibility for the nation's nuclear research and development, regulatory and licensing works. In order to deal with important issues in nuclear safety, the NSC was established under the MOST in December 1996. The NSC consists of seven to nine members, including the Minister of Science and Technology who is its chairman.

The MOCIE is responsible for the construction and operation of nuclear power plants, nuclear fuel supply, and the management of low- and intermediate-level radioactive waste.

2.2.  Nuclear Power Plants: Status and Operations

Since the first commercial operation of Kori unit 1 in 1978, nuclear energy has been an important energy in Korea. In spite of the slowdown of the nuclear energy industry in the U.S. and Europe, the Korean government has been steadily promoting the nuclear power generation business in response to Korea's increasing electricity demand, seeking new sites for nuclear power plants and supporting the development of commercial technology.

As of Dec. 2005, a total of twenty nuclear power units are in operation, and eight units are under construction or planning as shown in Table 7. Korea has more than 17 GW of nuclear power capacity, which accounts for 28.5% of its total electric power capacity. The volume of nuclear power generation in 2005 was around 147 TWh, accounting for 40.3% of total power generation. Korea also has a high capacity factor of its nuclear units, which was 90.4% in 2000, and 95.5% in 2005 as shown in Table 7 and 8.

TABLE 8. STATUS OF NUCLEAR POWER PLANTS

According to the "the Third Basic Plan of Long-term Electricity Supply and Demand", which was finalized by MOCIE in December 2005, eight new nuclear power units will be constructed by 2016, including the eight units that are currently under construction or planning. The share of nuclear power capacity and nuclear power generation will be increased to 29.0% and 43.4%, respectively by 2020 as shown in Figure 4.

To enhance the safety and economy of nuclear power plants, KHNP has developed an advanced power reactor with a capacity of 1,400MWe, called APR1400 since 1995, on the basis of the technological self-reliance of the KSNP.

The APR1400 is an improved version of a light water reactor. It is expected to be ten times safer than the KSNP. In terms of economic benefits, it will be more competitive than any existing nuclear power units or thermal plant. The APR1400 Standard design was certified through a stringent safety review by the Korean regulatory agency in May 2002 and appraised as the new design concept with enhanced safety and economical competitiveness. Shin-Kori Units 3 & 4 will be the first APR1400 plant and are to be constructed at the site adjacent to the present Kori nuclear power station. They are scheduled to start commercial operation in September 2013 and 2014 respectively by the Third Basic Plan of Long-term Electricity Supply and Demand.

2.3.  Supply of NPPs

In 1985, the Korean government made a milestone decision to implement the national self-reliance policy and allocated the roles and duties among domestic nuclear organizations to streamline the nuclear power industry

DOOSAN took part of plant manufacturing by virtue of its capability to supply heavy industrial construction equipment and machinery. KOPEC was established in 1975 to foster the nation's self-reliance in power technologies, particularly in nuclear power engineering for pressurized water reactors. KOPEC took the prime architect engineer's responsibility. KPS was decided to provide maintenance services for all the operating nuclear power plants and 5 individual companies including DOOSAN are providing maintenance services for Ulchin Units 5 & 6 plants under start-up. KNFC was established in November 1982 by the joint investment of KEPCO and KAERI to localize the nuclear fuel fabrication for pressurized water reactors and CANDU reactors.

The self-reliance strategy has been applied since construction of the Yonggwang 3 & 4 project. Domestic nuclear industries became the project's prime contractors on the condition of technology support and transfer from foreign subcontractors.

2.4.  Operation of NPPs

KEPCO was the sole electrical generating utility in Korea. As mentioned in Section 1.3, KEPCO's generation sector has been split up into five non-nuclear GENCOs and one hydro-nuclear GENCO: KHNP. KHNP is the sole entity in Korea responsible for long-term planning, development and generation of nuclear and hydro power. It has implemented a comprehensive program for improving the performance of NPPs leading to world top class.

2.5.  Fuel Cycle and Waste Management

Korea's demand for Uranium and nuclear fuel cycle service has continuously increased with the expansion of its nuclear power capacity. The demand is expected to account for 5% of the world's demand in the year 2006. Korea imports Uranium concentrates from Australia, Canada, France, Kazakhstan, the U.S. and South Africa. In 2006, Korea imported a total of 8.2 million pounds of U3O8.

KHNP, the sole consumer of nuclear fuel in Korea, has a basic guideline to ensure the stable supply of nuclear fuel and to pursue the economic efficiency at the same time by applying an international open bid. For Uranium concentrates, KHNP has tried to maintain the optimal contract condition through both long-term contracts and spot-market purchase. Whereas conversion and enrichment services come from the U.S., the U.K., France, Canada, and Russia by long-term contracts. Fuel fabrication services are fully localized to meet domestic needs.

The Radwaste Disposal Facility Project of KHNP was established as the responsible organization for management of low-level radwaste and spent fuels in the nation. In order to carry out the radioactive waste management program more successfully, the government promulgated a law to enable such support to neighboring local communities and inhabitants in the form of a fund to improve the standard of their living.

KHNP established the plan to build an Away From Reactor Interim Storage Facility for the spent fuel and a permanent disposal facility for the low/intermediate level radwaste under the government's auspice.

The plan was approved by the Atomic Energy Commission in September 1998. According to the plan, a low-and-intermediate-level radioactive waste (LILW) repository will be constructed by 2008 and spent fuels will be stored at each nuclear power plant site until interim storage facilities are constructed by 2016. But in December 2004, the Atomic Energy Commission decided to separate the construction plan of the LILW and spent fuel interim storage facility respectively.

2.6.  Research and Development

The Atomic Energy Act stipulates that the Minister of Science and Technology shall formulate the National Nuclear R&D Program according to the sector-by-sector implementation plan.

The Nuclear R&D Program, otherwise called the "National Medium-and-Long-term Nuclear R&D Program", is implemented mainly by KAERI, KCCH(Korea Cancer Center Hospital) and KINS. Besides, industry-led R&D Programs are implemented by KHNP, KOPEC, KPS and KNFC etc.

Originally, the "National Medium-and-Long-term Nuclear R&D Program" was launched in June 1992 as a 10-year (1992-2001) programme. It was modified into a new R&D program for 1997-2006 term, to take account of major changes in national and international situations. The program is funded by both the government and the nuclear industry.

The R&D Program is focused on five research fields such as; 1) advanced reactor & fuel, 2) nuclear safety, 3) radioactive waste management, 4) application of radiation and radioisotopes, 5) fundamental technologies.

A couple of projects for development of advanced reactors and fuel cycle technology are in progress under the mid and long-term nuclear R&D program. As the near term reactor options, KNGR(Korea Next Generation Reactor so called APR1400) and SMART (System-integrated Modular Advanced Reactor) are under development. As mid and long-term reactor options, KALIMER (Korea Advanced Liquid Metal Reactor) for power generation and a number of advanced reactors, as a member of Gen IV program, are also under development.

Even though Korea has a "wait and see policy" for spent fuel management, several alternative studies on spent fuel management have been carried out for a long time. The DUPIC program is one of the prominent approaches among the KAERI R&D activities. Also active R&D activities on the treatment of radioactive wastes from the nuclear fuel cycles as well as the decontamination and decommissioning of nuclear facilities are in progress.

Several research projects on the application of radiation and radioisotopes including the production of radioisotopes have been being conducted for various areas such as medicine, agriculture, food, industry etc.

2.7.  International Co-operation and Initiatives

In order to vitalize the efficient development of nuclear power utilization, international cooperation is essential in bilateral and multilateral information/personnel exchange, nuclear industry trading, and R&D. The bilateral cooperation encompasses governmental guarantee, scope and period of cooperation, and mediation of disputes regarding the peaceful use of nuclear energy. The number of bilateral international nuclear cooperation agreements, which started in 1956, has been on the increase, totaling 22 countries, with which the nuclear cooperation agreement has been concluded as of the end of 2006. Joint committees of nuclear energy between Korea and the cooperating countries are held in both countries alternately which lay the foundation for the introduction of advanced nuclear technology from developed countries.

Korea has been also making an active effort to promote the multilateral international cooperation for the peaceful use of nuclear energy. The cooperation with IAEA (International Atomic Energy Agency) and OECD/NEA (Organization for Economic Cooperation and Development/Nuclear Energy Agency) are the representative multilateral cooperation for promotion of peaceful use of nuclear energy, for which diverse cooperation activity discussions, information/personnel exchange between member countries, and international joint research have been executed.

Bilateral Nuclear Power Cooperation

The Republic of Korea's bilateral cooperation on nuclear energy started with the Korea-the U.S. Cooperation Agreement in 1956. As of the end of 2006, Korea, with its bilateral cooperation agreement on nuclear energy with 22 countries (U.S.A., Canada, France, Australia, Germany, Spain, Japan, Russia, U.K., China, Argentina, Vietnam, Turkey, Belgium, Czech, Brazil, Ukraine, Egypt, Chile, Rumania, Kazakhstan, and Indonesia), maintains the cooperation system of peaceful use/development of nuclear energy based on Non-Proliferation of Nuclear Weapons.

The major cooperation types of bilateral cooperation are the Joint Coordinating Committee of Nuclear Energy held in both countries in alternate years as a regular discussion body of nuclear energy for 12 countries including the USA, Canada, France, Australia, Japan, Russia, UK, Chile, China, Vietnam, Thailand, and Kazakhstan. The bilateral cooperation with countries other than the 12 countries includes visits of high-ranking governmental officials and technical survey teams, etc.

The objectives of Korea's bilateral cooperation on nuclear energy can be classified into two. Firstly, it is the expansion of technical exchange with developing countries to lay the foundation of nuclear technology export. Korea's bilateral cooperation relationship centered on nuclear cooperation agreement and joint coordinating committee extends from those with advanced countries in the 1970s and 1980 to countries in Southeast Asia, Africa, Eastern Europe, and South America in the 1990s and 2000s. Through the cooperation agreements, joint coordinating committees, dispatch of technical survey teams, invitation of high-ranking governmental officials, technical explanation meetings, or joint feasibility surveys for nuclear power plant introduction with developing countries, Korea aims at promoting the publicity of its nuclear technology and laying the foundation of overseas export. Secondly, it is the reinforcement of technical cooperation with advanced countries for the advance of nuclear technology. Through the joint coordinating committees with the USA, Canada, and France, Korea continuously promotes exchange in nuclear policies, personnel exchange, and joint research.

United States of America

The Republic of Korea's nuclear cooperation with the U.S.A. includes the inter-governmental agreement for the use of nuclear energy for non-military purposes concluded on February 3, 1956, the agreement on the application of ensuring measures among the IAEA, the Korea, and the USA on January 5, 1968, the agreement for nuclear utilization cooperation in private sectors between the Korea and the USA governments on March 19, 1973, the MOU for the exchange of nuclear safety technology information between Korean Ministry of Science and the Technology and US Nuclear Regulation Committee in June 1995, and the MOU between the Korean Ministry of Science and Technology and the US Department of Energy's research institution in June 1996.

Based on the MOU in August 1976 to establish a joint standing committee of Korea-USA nuclear energy and other energy to promote the technical and economic cooperation of nuclear energy between two countries including the peaceful use of nuclear and energy research & development, the regular annual meetings were held in both countries in alternate years from the first meeting in Seoul in July 1977 to the 27th meeting in 2006.

France

The Republic of Korea's nuclear cooperation with France started with the Cooperation Agreement on the Peaceful Use of Nuclear Energy on October 19, 1974 and the Agreement on the Safeguards Application among IAEA, the Korean Government, and the French Government on September 22, 1975. A closer cooperative relationship started with the conclusion of the Agreement on the Establishment and Operation of the Korea-France Joint Coordinating Committee of Nuclear Energy and the Agreement on Information Exchange and Cooperation in Nuclear Safety Regulations on February 18, 1982.

Based on the Agreement on the Establishment and Operation of the Korea-France Joint Coordinating Committee of Nuclear Energy, the Joint Coordinating Committee's annual meetings were held in both countries in turn from the 1st meeting held in Paris in February 1982 to the 17th meeting.

United Kingdom

With the nuclear cooperation agreement concluded in November 1991 between the Korea and the U.K., the bilateral cooperation is discussed in the Korea-UK Nuclear Energy Consultation Meeting. The 6th Nuclear Energy Consultation Meeting was held in London in June 1999. At the meeting, policy issues such as UK's major nuclear policies, Korea's becoming an IAEA-appointed board member country, and nuclear safety information exchange and technical issues such as RI (Radioisotope) utilization cooperation using Cyclotron, and the information exchange between nuclear safety regulation organizations were discussed.

Russia

Korea's cooperation with Russia in nuclear energy, initiated when Russia expressed its intention of supplying Korea heavy water and uranium. On December 14, 1990 the MOU on the Peaceful Use of Nuclear Energy between the MOST (Korean Ministry of Science and Technology) and the Russian Department of Nuclear was concluded, which was revised into the Cooperation Agreement on Peaceful Use of Nuclear Energy between the Korean Government and the Russian Federal Government on May 28, 1999 (effective on October 8, 1999).

Based on the MOU concluded in 1990, the 1st nuclear Joint Coordinating Committee between both countries was held in March 1991 and the 4th meeting in Moscow in 1995. With the nuclear cooperation agreement concluded in 1999, the 5th nuclear joint committee was held in 2000, and the 11th joint coordinating committee was held in Seoul in December 2006.

Japan

Korea's nuclear cooperation with Japan started with the MOU for Peaceful Use of Nuclear Energy concluded between Foreign Affairs Ministers during the Korea-Japan Summit in May 1990. The MOU on Nuclear Safety Regulation Cooperation was exchanged between the MOST and the METI in February 1991 and the Nuclear Safety Cooperation Agreement was concluded between MOST and STA in December 1991.

The 1st Nuclear Cooperation Conference was held based on Article 4 of the MOU concluded in May 1990 in Seoul in November and the 8th conference was held in 2002.

In addition to the Korea-Japan Nuclear Cooperation Conference, the MOST-METI/NISA Nuclear Safety Conference is held in order to reinforce practical cooperation in nuclear safety between both countries. The Korea-Japan Nuclear Safety Conference, which had been held together with the Nuclear Cooperation Conference until the 7th meeting, started to be held separately agreeing with the suggestion by Japan, and the separate 8th conference was held in Seoul in May 2002 and the 9th conference was held in Tokyo in February 2004.

Besides the bilateral cooperation with Japan, there is also multilateral cooperation through the ICNCA which was held in Tokyo during 1990-1999, in which 9 Asian countries participated. The ICNCA changed to the FNCA in 2000 and continues till today. During the 1st nuclear safety agreement review meeting, it became necessary to review the safety agreement and secure the cooperation between neighboring countries. As a result there was a conference among the Korea, China and Japan (MOST-NISA-NNSA) twice (1st in Tokyo on January 3, 2001 and 2nd in Japan on April 2, 2004).

China

After the establishment of the Korea-China diplomatic relationship in August 1992, the Nuclear Cooperation Agreement was concluded in October 1994 and the MOU on Nuclear Safety Cooperation was concluded in December 1994 (MOST/National Nuclear Safety Bureau Chief) to establish the foundation for nuclear cooperation. With the Agreement on Peaceful Use/Cooperation of Nuclear between the MOST and the CAEA which was concluded to establish and operate Korea-China Joint Nuclear Committee in October 1999, the Joint Nuclear Coordinating Committee has been held since 2000.

Canada

Korea's cooperation with Canada started with the conclusion of the contract to supply the CANDU reactor Wolsong #1 between the KEPCO and the AECL (Atomic Energy of Canada Limited) in January 1975. With the Cooperation Agreement for Peaceful Use and Application of Nuclear Energy between both countries in January 1976, the nuclear cooperation between both countries started. In September 1982, the MOST and Canadian Nuclear Committee concluded the Agreement on the Annual Report of Nuclear Materials and Nuclear Regulation Information Exchange.

In order to execute efficient nuclear cooperation, both countries concluded the MOU on the Establishment and Operation of the Korea-Canada Nuclear Joint Coordinating Committee in April 1983 (Ministry of Foreign Affairs/Ministry of Power Mining Resources, currently Ministry of Natural Resources), based on which the 1st Nuclear Joint Coordinating Committee between both countries was held in Seoul in April 1983.

In order to discuss the nuclear safety, exchange regulation areas, and discuss joint research and mutual interests besides cooperation in the area of nuclear energy utilization/development, the MOU for Nuclear Safety Regulation Cooperation was concluded between the MOST and the Canadian Nuclear Safety Committee in October 1998, which laid the foundation for the MOST-CNSC Nuclear Safety Committee to be held independent of the Joint Coordinating Committee.

Vietnam

Korea's official cooperation with Vietnam started with the conclusion of the Agreement on the Cooperation and Research on Peaceful Use of Nuclear Energy between both countries in November 1996. The cooperation was furthered by exchange visits of Vietnamese high-ranking government policy makers and representatives of both counties. The Agreement for the Cooperation between Nuclear related Organizations was concluded between the Ministries of Science and Technology of both countries in February 2002. Based on the cooperation agreement, both countries have held bilateral nuclear cooperation consultation meeting since 2002. The training program for Vietnamese nuclear human resources has been in progress since 2005.

Australia

The Korean and Australian governments concluded the agreement on cooperation in peaceful use of Nuclear Energy on May 2, 1979 and the administrative agreement on November 25, 1983. Based on Article 9 of the agreement, both countries have been holding the Korea-Australia nuclear policy consultation meeting since February 1990.

Kazakhstan

Korea's cooperation in nuclear with Kazakhstan started with the conclusion of the Korea-Kazakhstan nuclear cooperation agreement between both governments on September 20, 2004. At the 1st nuclear cooperation consultation meeting held in Kazakhstan in September 2004, both countries decided to reinforce the government-level cooperation.

Multilateral cooperation

IAEA (International Atomic Energy Agency)

The Board of Governors of the IAEA consists of 35 member countries. The Republic of Korea was appointed as a regional board member country at the 49th General Conference. Of the 18 Standing Advisory Groups to support the policy decisions of the Director General of IAEA, Korea participates in 16 Standing Advisory Groups and sends representatives to meetings held twice a year. As the meeting of INSAG (International Nuclear Safety Advisory Group) was held in Seoul in April 2005, high-level policy makers came to Seoul to participate in the meeting. The IAEA's biennial technical cooperation program executed 5 projects during 2005-2006. Based on the MOU (Memorandum of Understanding) concluded in November 1998 for the reinforcement of technical cooperation between the Korea and the IAEA, the Korea is actively hosting international technical conferences held by the IAEA and the IAEA regional training programs for the trainees from developing countries. As a result of the effort to promote improved nuclear technology and enhanced technology cooperation, the number of applications of scientific/fellowship visits to Korea is increasing every year. Visits from countries in South/Middle America and Eastern Europe have been increasing recently. As of December 2005, the IAEA executed 125 international CRPs (Coordinated Research Programs) of which the Korea participated in 45 projects.

OECD/NEA (Organization for Economic Cooperation and Development/Nuclear Energy Agency)

The Republic of Korea became a member country of the OECD/NEA (Organization for Economic Cooperation and Development/Nuclear Energy Agency) in May 1993. The Steering Committee composed of the representatives of member countries is held twice a year, in which Korea participates as a member country. Seven standing technical committees which consist of member country experts are in operation under the Steering Committee. Korea actively participates in the NEA's current technical cooperation programs by appointing experts to participate in each technical committee.

According to its regulations, the NEA develops and executes the research programs in which the member countries jointly participate. As of the end of 2005, the NEA runs 16 international joint research projects and information exchange projects. Korea participated in 12 of the 16 projects.

FNCA (Forum for Nuclear Cooperation in Asia)

The FNCA (Forum for Nuclear Cooperation in Asia) is the organization launched by a change in part of the operational system of ICNCA (International Conference of Nuclear Cooperation in Asia). It is a forum of high-ranking governmental officials for the vitalization of nuclear cooperation in Asia such as peaceful use and joint research of nuclear energy. The 9 member countries, Korea, Japan, Australia, China, Indonesia, Malaysia, Philippines, Thailand, and Vietnam, are in cooperation in 8 subject areas such as people's understanding of nuclear energy, control of radioactive waste, etc.

The FNCA's operational system consists of forums held in Japan and member countries in turn every December, Coordinator Meetings held in Tokyo, Japan every March, and annual workshops/seminars of project areas in which experts participate. Korea actively participates in activities of each meeting and authorized representatives for each project areas are designated by the MOST for effective execution of the projects.

INPO (Institute of Nuclear Power Operation)

The KHNP (Korea Hydro & Nuclear Power Co., Ltd) exchanges technical information using the international online information exchange system operated by the INPO, collects INPO publications including nuclear power plant operation guidelines, accumulates information and promotes technical exchange through participation in academic conferences, seminars, and workshops.

WANO (World Association of Nuclear Operators)

Actively participating in the operation of the Tokyo Center to which the KHNP has been a member since the WANO was established in 1986, the KHNP contributed to the operation of the center by performing the role of chairman of the board from 1993 to 1995, and hosted the Tokyo Center's working-level personnel meeting and inter-regional workshop in 1997, inter-regional workshop in 2001, and working-level personnel meeting in 2002 in Korea.

Through the international online information exchange system shared by the WANO and the INPO, the KHNP provides important information on domestic nuclear power plants and collects, analyzes, evaluates, and uses operational experience of overseas major nuclear power plants in order to improve the performance of domestic nuclear power plants.

OG (Owners Groups)

In order to improve the safety and reliability of nuclear power plants, it is essential to reflect the operation experience and latest technology in a timely manner among the owners of identical types of nuclear reactors. Korea joined three nuclear power plant owners groups, the FROG, the PWROG, and the COG and has exchanged diverse technical information.

The FROG (Framatome Reactor Owners Group) was established in October 1991 and the Korea joined the FROG at the time of establishment. As a member country, The Korea participates in or hosts the biannual regular Steering Committee, exchanges operational information with member countries, and selects and executes the joint projects to solve current issues.

The PWROG (Pressurized Water Reactor Owners Group) consists of 26 US power companies and 10 foreign companies as members, of which the KHNP is a foreign company member. Foreign member companies, as associate members, do not have the decision authority but can collect technical information. With such a regulation resulting in the decreased interest among foreign member companies, the authority to decide projects depending on project participation is given with the revision of the operational regulation in March 2004. As it became possible for foreign companies to suggest the joint research on the necessary technology for the WH-type and CE-type nuclear plants in Korea, the KHNP is seeking active participation in the projects.

The COG (CANDU Owners Group) consists of 11 member companies including 5 Canadian companies and 6 foreign companies. The KHNP joined the COG in November 1986 and maintains an associate member status.

2.8.  Human Resources Development

The distribution of human resources in the nuclear industry

The total number of human resources in the Korean nuclear industry in 2004 was 21,201, up by 1.2% from the year before. All the employees were divided into groups for analysis based on the sectors they work in: nuclear plant construction and operation, nuclear safety, nuclear energy research, nuclear project support, radioactive isotope (RI) utilization.

The workforce in each sector showed some changes. The number of employees in the fields of nuclear plant construction and operation and nuclear energy research rose by 4.4% and 2.6% respectively. Meanwhile, the number of workers in nuclear safety and nuclear project support sectors fell by 1.1% and 5.7% respectively. In particular, the field of RI showed a 9% decrease in the workforce due probably to advanced inspection equipment and techniques.

When nuclear-related employees were classified according to functional characteristics of their work, the number of technical workers, office workers, researchers, and general service workers was 13,549 (63.9%), 2,618 (12.3%), 2,552 (12.0%), and 2,482 (11.7%) respectively. The number of female workers was 746 (3.5% of the entire workforce), up by 159 (27.1%) compared with the previous year. This was because employers began to hire more women and, in turn, the number of female researchers and office workers in public and research institutions increased.

The distribution of the workforce in terms of educational level was as follows: Of the total 1,099 workers holding doctorate degrees, 648 (59%) were engaged in research institutions. Out of 2,659 workers with master's degrees, 23.2% were employed in nuclear power plants, 19.7% in research institutions and manufacturing facilities respectively, and 19.1% in nuclear design companies. Among 9,443 college graduates, 3,645 (38.6%) worked in nuclear power plants.

From 1995 to 2004, the number of employees in the fields of nuclear power plants, research and public institutions had steadily risen due to the increased work regarding nuclear plant facilities, research, and management. However, the size of the workforce in designing, manufacturing, and the service sector had shrunk mainly because of the accumulated technology and the reduced number of workers required.

Personnel training in the nuclear industry

Korea Hydro & Nuclear Power Co., Ltd. (KHNP) has built and run 20 nuclear power units. It has approximately 6,800 workers and is expected to require an additional 1,800 workers by 2010. The company has looked for and employed high-quality university and community college graduates, and has been training employees at its Nuclear Power Education Institute and other training and education centers within and outside the company.

The KHNP has been focusing its efforts on nurturing the best engineers. The firm offers its instruction staff regular field experiences and master's and doctor's degree courses to upgrade their qualifications while combining theoretical knowledge and practical skills through industry-academic cooperation.

In addition, the company set up training centers for each of the three nuclear power sites to provide theoretical knowledge of nuclear power and specific system training for different types of nuclear power plants. Accordingly, its workers have simulator training and other high-level education to improve operation and maintenance skills.

Korea Power Engineering Company, Inc. (KOPEC) has formulated and implemented talent cultivation programs to make sure that highly-skilled technical employees work more actively and independently. In particular, the company not only has internal and external training programs for new employees and professional trainees, but also provides on-the-job participation (OJP) through technical cooperation agreements with foreign architect engineering companies.

Korea Nuclear Fuel Co., Ltd (KNFC) was established to achieve technical independence for nuclear fuel and has been engaged in fuel design, manufacturing, repairing, and developing related technologies. The company has the total of 607 employees, of whom the number of research personnel and technical and manufacturing staff is 123 and 363 respectively, forming about 80% of the entire workforce.

Out of the 486 technical workers, 308 (63%) are university graduates and 140 of them have master's or doctor's degrees. The company has been trying to find the best talent through industry-academic cooperation such as the Brain Korea 21 fellowship with leading universities.

Korea Plant Service and Engineering (KPS) was founded to provide high quality maintenance service for electric power plants and industry equipment. The company has 1,513 highly skilled maintenance staff whose average period of service is 14.7 years. The KPS also hires and educates new workers regularly to maintain know-how and fill the shortage of staff.

Doosan Heavy Industries ' Construction Co., Ltd, a design and manufacturing company of nuclear power plants, came under private management in 2001 and was reorganized into six business divisions. During the process, its Nuclear Business Group was officially launched. Because of the characteristics of its work, the company has more than 91% of the group's management staff graduated from technology institutes, and about 70% of them majored in Mechanical Engineering.

Student training in academic and research institutions

Seoul National University's Department of Nuclear Engineering has 12 professors, 129 undergraduates, 35 students in the master's course, and 15 PhD candidates. They are working on core nuclear design analysis and thermal-hydraulics. Korea Advanced Institute of Science and Technology (KAIST)'s Department of Nuclear & Quantum Engineering, which has 12 professors, 16 undergraduates, 41 master's course students, and 78 PhD candidates, offers research-focused education. Other colleges including Hanyang University, Kyunghee University, Chosun University, and Cheju National University set up a nuclear-related department and have been educating approximately 850 students.

The Nuclear Training Center (NTC) of Korea Atomic Energy Research Institute (KAERI) provides a wide range of training courses to nurture domestic and foreign nuclear personnel and implements various projects to contribute to the nation's technical independence in nuclear power generation and development of new technologies.

Korea Institute of Nuclear Safety (KINS), the country's nuclear safety regulator, has established and run the Nuclear Safety School (NSS) to train nuclear safety regulation staff and educate nuclear industry workers, students, and the general public on the information regarding nuclear safety.

NSS, which is the trusted educational center for radioactive disaster prevention staff, supervises and manages the six educational institutions authorized by the government and the nation's entire staff in radioactive disaster prevention.

3.  NATIONAL LAWS AND REGULATIONS

3.1.  Safety Authority and the Licensing Process

3.1.1.  Safety Authority

The assurance of nuclear safety is the highest priority in the use and development of nuclear energy in Korea. The goal is to protect plant personnel and neighbouring inhabitants by keeping radiation effects as low as possible.

Nuclear regulatory organizations are mainly composed of MOST as a regulatory authority, the Nuclear Safety Commission (NSC), and Korea Institute of Nuclear Safety (KINS) as a technical expert body. There is also Atomic Energy Commission (AEC) under the jurisdiction of the Prime Minister, as the supreme organization for decision making on national nuclear policy. The NSC is independent of the AEC.

The MOST has the overall responsibility for ensuring the protection of public health and safety through regulatory control and safety inspections, based on the provisions of the Atomic Energy Act. The KINS entrusted with the regulatory works by the MOST, carries out technical assessments according to the licensing documents prepared by the utility and conducts safety inspections on all nuclear facilities. The basic concept of nuclear safety is not only to protect the public health and safety from radiation hazards, but also to protect the environment from any subsequent harmful effects.

In September 1994, The MOST issued the "Nuclear Safety Policy Statement" containing five regulatory principles of nuclear safety: "Independence, Openness, Clarity, Efficiency, and Reliability" in order to secure consistency, adequacy, and rationality of regulatory activities. The Nuclear Safety Policy Statement declares that securing safety is a prerequisite to the development and utilization of nuclear energy, and that all personnel engaged in nuclear activities must adhere to the principle of "priority to safety". It emphasizes the importance of developing the nuclear safety culture that the International Atomic Energy Agency (IAEA) has referred to.

It also prescribes that the ultimate responsibility for nuclear safety rests with the operating organizations of nuclear installations, and is in no way diluted by the separate activities and responsibilities of designers, suppliers, constructors, or regulators. Finally, it prescribes that the government shall fulfilI its overall responsibility to protect the public and the environment from radiation hazards that might accompany the development and utilization of nuclear energy.

3.1.2.  Licensing Procedures

Regulation and licensing procedures for nuclear power plants in Korea are divided into three stages:

• In the site selection stage, the conceptual design is examined to determine the appropriateness of the proposed site. The safety requirements of the site are reviewed from standpoints of the design, the construction, and the operation of the plant;
• For the construction permit, the utility submits a Preliminary Safety Analysis Report (PSAR) and an overall quality assurance program for the Project along with the reference design of the plant. Additionally, the utility is required to prepare an environmental impact statement;
• When the utility requests an operating license, the MOST must confirm that the as-built plant conforms to the submitted design. In this stage, operational technical specification, and emergency plans and procedures against radiation hazards are submitted.

Regulatory inspections of NPPs under construction or in operation are implemented according to the procedure of a pre-operational inspection of the nuclear installation, a periodic inspection of the operating nuclear installations, a quality assurance audit, a daily inspection by resident inspectors, and a special inspection.

Of the twenty nuclear power plants in the country, eleven units have been in operation for more than ten years as of the end of 2006. In compliance with the Article of the Convention on Nuclear Safety, the Periodic Safety Review (PSR) was adopted by the Ministry of Science and Technology through technical review by the Nuclear Safety Commission as a safety evaluation process during the lifetime of operating nuclear power plants to maintain the safety level at current safety standards and practices.

Kori Unit 1 was designated as the first plant to apply a PSR in Korea and the KHNP has implemented the PSR for Kori Unit since May 2000. The result was submitted to the MOST in November 2002 for intensive review. The other plants which have been operating for over 10 years will have PSR implemented by 2006.

The Korean government is continually improving its nuclear control system as the amount of domestic nuclear material increases in parallel with the growth of the nuclear industry. The government established a State System for the Accounting and Control of nuclear materials (SSAC) within the MOST. In order to develop nuclear control technology and to technically assist the government, the Technology Center for Nuclear Control (TCNC) at KAERI was established in 1994. The Korean government launched the National Nuclear Management and Control Agency (NNCA), an independent watchdog, in October 2004. NNCA was expanded into the Korea Institute of Nonproliferation and Control (KINAC) in June 2006, to enhance the country's nuclear transparency.

3.1.3.  Radiation Protection Policy

The Atomic Energy Act prescribes the basic matters on radiation protection to be applied to nuclear installations, as follows:

• provisions on protective measures against radiation hazards that keep the radioactive material release and the occupational radiation exposure as low as reasonably achievable (ALARA);
• provisions on safety measures relating to operations stipulating the necessary actions to be taken for protecting human life, materials, and the environment from radiation hazards which may accompany the operation of nuclear installations;
• performance criteria for the personnel dosimetry service for radiation workers or persons having access to nuclear installations; and
• training requirements for the workforce involving radiation exposure.

The Enforcement Decree and Enforcement Regulation of the Atomic Energy Act specifies the details necessary for implementing the basic matters referred to in the Act. Also a notice from the Minister of Science and Technology (titled "Radiation Protection Standards") prescribes technical requirements on radiation protection such as the conditions of radioactive effluent release and dose limits.

The safety regulatory activities for radiation protection are classified into safety reviews, regulatory inspections, and the development of technical standards. In the safety review, items are examined concerning ALARA assurance of radiation exposure to workers, source term assessment, characteristics of radiation protection design, dose assessment, a health physics program, and the appropriateness of equipment.

The regulatory inspection confirms whether or not the radiation monitoring system in nuclear installations is properly operated. It also confirms that any personal exposure to radiation is maintained as low as reasonably achievable (ALARA) by checking the health physics program, the procedures for the radiation exposure control, the ALARA program, and radiation work management.

The Korea has developed the Information System on Integrated Radiation Safety (ISIRS). This system can easily trace and monitor all processes related to the use of radioactive sources from production and importation to final disposal through the Internet. ISIRS can provide more accurate and extensive information on radiation safety on a real time basis to the general public and to all other related organizations.

As of December 2005, the number of licensed organizations for radiation utilization in Korea is 2,723, which consists of industrial firms 53.9% (1,467), NDT firms 1.6% (43), sales firms 5.1% (138), public organizations 15.6% (424), hospitals ' clinics 5.1% (140), educational organizations 7.9% (215), research institutions 9.6% (261) and others 0.4% (12).

3.1.4.  National Environmental Radiation Monitoring Network

The KINS, entrusted by the MOST, installs and operates the nation-wide environment radiation monitoring network in addition to the above safety regulatory activities. The KINS measures the radioactivity in airborne dust, fallout, rainwater, livestock products, farm products, soil, drinking water, and background radiation levels throughout the nation. This enables KINS to quickly detect and properly respond to any abnormal situations or symptoms in environmental radioactivity.

The nationwide environmental radiation monitoring network consists of an environmental radiation monitoring center in KINS, local monitoring stations situated at ten cities with a large population, monitoring posts located in Ulnong-do and Baekryong-do, which are islands located far away from the peninsula in the eastern and western seas respectively, monitoring posts around four nuclear installation sites, and a monitoring network connected with a military monitoring post.

3.2.  Main National Laws and Regulations in Nuclear Power

The Korean government promulgated the Atomic Energy Act as a fundamental piece of legislation to regulate the nuclear activities in Korea. The regulatory organizations and functions are also described in the Act. The MOST has ultimate responsibility for the protection of the public and environment, while the prime responsibility rests with the utility.

The legislative system of the Atomic Energy Act has several levels according to origination and applicability, i.e., the Atomic Energy Act, Enforcement Decree of the Act, Enforcement Regulation of the Act, Notice of the Minister of MOST, and Technical Specification which is a part of the safety analysis reports. The regulatory authority for regulating nuclear industry activities is based on the Atomic Energy Act. In conformity with the atomic energy laws, the licensee submits to the MOST various documents demonstrating the adequacy of the proposed design.

There are two major legislative instruments regarding civil nuclear third party liability, namely the "Act on Compensation for Nuclear Damage" (so-called Compensation Act) and the "Act on Indemnification Agreements for Nuclear Liability" (so-called Indemnity Agreement Act).

Reflecting developments in related international conventions, the Compensation Act was amended in December 2000 and entered into force on January 1, 2002. Highlights of amendment are as follows; " Expansion of applicable scope not only to nuclear incidents in the territory but also in the EEZ (Exclusive Economic Zone);

• Increase of operator's liability to 300 million SDRs;
• Extension and clarification of the definition for "nuclear damage" according to the 1997 Protocol to Amend the Vienna Convention;
• Exclusion of a grave natural disaster such as earthquakes from exonerations;
• Extension of prescription period for personal injury to 30 years.

A Nuclear Damage Compensation Deliberation Committee within MOST co-ordinates extra-judicial settlement of claims for nuclear damage compensation and surveys and evaluates nuclear damage.

In 2001, the Atomic Energy Act was amended to reflect the reorganization of the government, deregulation, and the rearrangement of the legal system. The relevant lower level enactment was completed in the first half of 2000. Subsequently, the Atomic Energy Act was amended again in 2001 to take into account the strengthening of nuclear safety as follows;

• Increase of NSC members to guarantee more participation of specialists in the policy and decision-making process;
• Introduction of the Periodic Safety Review (PSR) to ensure that the safety of operating NPPs is maintained at current safety standards and practices;
• Introduction of the Standard Design Certificate to streamline the licensing process for the construction of NPPs with same design.
• Introduction of the ICRP Pub. 60 on a step-by-step basis with full implementation starting in January 2003.

In 2005, the Atomic Energy Act (AEA) was amended to enhance the nuclear transparency and secure the confidence of international community by means of establishing KINAC and the emergency plan of nuclear related organizations against accidental transportation of radioactive materials, and so on.

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1.  Energy Policy

A. Long-term Nuclear Energy Policy Towards the year 2030

In order to realize the goal of the Atomic Energy Act, the Atomic Energy Commission decided upon the "Direction to Long-term Nuclear Energy Policy towards the Year 2030" in July 1994. The Direction emphasizes the safe and peaceful use of nuclear energy under the spirit of pursuing a better life in harmony with nature. It describes 4 primary objectives contributing to the economic and technological development and ultimately to the improvement of human welfare as follows:

• to enhance the stability in energy supply by promoting nuclear energy as a major energy source of domestic electricity generation,
• to achieve self-reliance in a nuclear reactor and proliferation-resistant nuclear fuel cycle technology through comprehensive and systematic nuclear energy research and development,
• to foster nuclear energy as a strategic export industry by securing international competitiveness through the advancement of nuclear technology, on the basis of active participation and initiatives of the civil sector, and
• to play a leading role in the improvement of human welfare and the advancement of science and technology by expanding the use of nuclear technology in agriculture, engineering, medicine, and industry, and by enacting basic research of nuclear technology.

For the effective achievement of these 4 objectives, 10 basic directions of a long-term nuclear energy policy were established as follows:

• to continue expanding the development and utilization of nuclear energy in the future, unless an epoch-making alternative energy source becomes available in the foreseeable future,
• to develop and utilize nuclear energy for peaceful purposes only, and to consistently uphold this policy,
• to further strengthen the efforts to improve nuclear safety, recognizing the fact that securing nuclear safety is a prerequisite to the development and utilization of nuclear energy,
• to improve the economy and to strengthen the international competitiveness of domestic industries through the advancement of nuclear technology,
• to increase the public's understanding of and support for nuclear energy while respecting the public's right to know under the ideals of democracy and openness,
• to implement the nuclear energy policy in such a way as to promote a balanced development of the entire spectrum of both nuclear industries and technologies,
• to promote creative research and development activities so that nuclear energy can play a leading role in demonstrating the possibilities of technological innovation and to challenge new areas of science and technology, as an integral part of the national science and technology policies,
• to conduct nuclear research and development activities in collaboration with industries, universities and research institutes by rational division of the responsibilities between the governmental and the non-governmental sectors, in view of the specialization, complexity, and the immensity of nuclear research,
• to implement the nuclear energy policy on the basis of international understanding and cooperation in order to keep up with international harmonization, and
• to consistently implement the nuclear energy policy on the basis of long-term perspectives on the techno-economic and socio-political environment.

B. Comprehensive Nuclear Energy Promotion Plan

In order to achieve the objectives of the long-term nuclear energy policy, the government established a legal basis to formulate the "Comprehensive Nuclear Energy Promotion Plan (CNEPP)" every five years by the amendment to the Atomic Energy Act in January 1995. The CNEPP includes long-term nuclear policy objectives and basic directions, sector-by-sector objectives, budget and investment plan etc.

The Atomic Energy Act stipulates that the Minister of Science and Technology and the heads of the concerned Ministries shall formulate sector-by-sector implementation plans for those areas under their jurisdiction every five years in accordance with the CPPNE and shall establish and implement annual action plans according to the sector-by-sector implementation plans.

The 1st CNEPP was formulated in June 1997. As of July 2001, the Korean government formulated the second CNEPP which includes an implementation plan for the five years from 2002 to 2006, and a direction to nuclear energy policy towards the year of 2015.

10 promotion areas of the CNEPP are as follows;

(1) Nuclear Electricity Generation and Reactor Development
(2) Nuclear Fuel Cycle
(3) Utilization of Radiation and Radioisotopes
(4) Fostering and Promotion of Nuclear Industry
(5) Enhancement of Public Understanding and Site Acquisition
(6) Nuclear Safety and Radiation Protection
(7) Radioactive Waste Management
(8) Basic and Fundamental Nuclear Research and Development
(9) Training of Nuclear Manpower
(10) Nuclear Diplomacy and International Cooperation

In 2002, to accelerate Radiation Technology (RT) development, The Korea enacted the "Act on the Utilization of Radiation and Radioisotopes". This act aims to secure RT research fund and formulation of related industries and manpower development, and establishment of a Radiation and Radioisotopes R&D Center under KAERI by 2005.

4.2.  Privatisation and Deregulation

The deregulation of the electricity market including privatisation of the sector and an increasing awareness of environmental issues create new challenges and opportunities for the different generation technologies, including nuclear power.

Market liberalization is expected to affect not only price level of electricity power, but also competitiveness of various power generation technologies. Liberalized market implies the possibility of business failure and capital loss for incompetent power generation companies. Power generation companies including the KHNP in a liberalized market bear more business risk in return for the possibility of higher return, being in favor of less capital-intensive technologies. This will impose additional challenge for the future of nuclear power. Nuclear power has a relatively larger burden for risk management due to its characteristics such as higher capital cost, longer construction time, less flexible operation conditions, and higher political and technical risks related to safety, waste disposal and decommissioning issues.

However, the nuclear power plants have achieved the lowest generation cost among other power sources such as coal, LNG and oil etc. in Korea. And deregulation of the electricity market is expected to be positive for nuclear power. And it is expected to give more chances to enhance the operational performance of nuclear power plants. The potential costs related to reduction of gases and other pollutant emissions by coal-fired power would strengthen the competitiveness of nuclear power.

4.3.  Role of the government in the nuclear R&D

The Atomic Energy Act stipulates that the Minister of Science and Technology (MOST) shall formulate the National Atomic Energy R&D Program according to the sector-by-sector implementation plan. The Atomic Energy R&D Program, so called the "National Mid- and Long-term Atomic Energy R&D Program" being implemented mainly by KAERI, KCCH, KINS and other fundamental research institutes.

In order to achieve the objectives of the long-term nuclear energy policy, the government established a legal basis to formulate the "Comprehensive Nuclear Energy Promotion Plan (CNEPP)" every five years. The MOST has the responsibility for ensuring the nuclear safety and the development of the nuclear technologies.

According to the CNEPP, The Government established the R&D Program which covers 4 fields as follows; i) the development of the nuclear technologies, ii) the development of the radiation technologies, iii) the project to enhance a basis of the fundamental research, iv) the project to planning of the research, the policy and the assessment.

So, the role of the government in the nuclear R&D contributing to the economic and technological development and ultimately to the improvement of human welfare as follows:

• to develop and utilize nuclear energy for peaceful purposes only, and to consistently uphold this policy,
• to further strengthen the efforts to improve nuclear safety, recognizing the fact that securing nuclear safety is a prerequisite to the development and utilization of nuclear energy,
• to continue in expanding the development and utilization of nuclear energy in the future,
• to improve the economy and to strengthen the international competitiveness of domestic industries through the advancement of nuclear technology.

4.4.  Nuclear Energy and Climate Change

Korea has been implementing policies concerning energy, environmental protection and economic development through a variety of programs. In order to formulate and implement measures to deal more efficiently with the United Nations Framework Convention on Climate Change (UNFCCC), an Inter-Ministerial Committee on the UNFCCC comprised of related government agencies, research institutions and private companies, was established in April 1998 with the Prime Minister as the head of the committee. The committee is preparing and implementing comprehensive measures to cope with the UNFCCC every three years. It is noteworthy that since 1995 the Korean government has increased the budget gradually to finance various projects aimed at mitigating the adverse effects of climate change through the "Energy Project Special Account".

Since more than 97% of Korea's energy demand is met through imports, Korea's energy policy has always placed top priority on energy conservation and energy efficiency even before the adoption of the UNFCCC in 1992. After the Rio Conference, such efforts have been further strengthened. In addition, the use of energy sources with low carbon intensity, such as nuclear energy and LNG is continuing to be expanded and the policy of promoting energy-related technology development is being vigorously implemented . The Korean government will promote less energy-intensive economic activities and encourage a more environmentally friendly life style. Furthermore, the government will develop and commercialize innovative technology to reduce the emissions of greenhouse gases, such as a next-generation nuclear reactor and a fuel cell. At the same time it will promote a "Clean Energy Community" to enhance energy efficiency in the residential and commercial sectors.

4.5.  Safety and waste management issues

A. Nuclear Safety

In September 1994, the MOST issued its "Nuclear Safety Policy Statement" containing 5 regulatory principles of nuclear safety: independence, openness, clarity, efficiency, and reliability. Also, it contained Risk Informed Regulation (RIR) which has introduced to current regulation system. RIR Objective is to use PRA insights and technology in a manner that complements the traditional deterministic approach and supports defense-in-depth.

The Nuclear Safety Policy Statement declares that securing safety is a prerequisite to the development and utilization of nuclear energy, and that all workers engaged in nuclear activities must adhere to the principle of "priority to safety". It emphasizes the importance of developing the nuclear safety culture that the International Atomic Energy Agency (IAEA) has referred to.

It also prescribes that the ultimate responsibility for nuclear safety rests with the operating organizations of nuclear installations, and is in no way diluted by the separate activities and responsibilities of designers, suppliers, constructors, or regulators. Finally, it prescribes that the Government shall fulfill its overall responsibility to protect the public and the environment from radiation hazards that might accompany the development and utilization of nuclear energy.

In 1994, the government designated the 10th of September as "Nuclear Safety Day". Various events highlighting nuclear safety have been conducted, through government initiatives, for the purpose of having workers engaged in all nuclear-related organizations recognize the importance of nuclear safety and solidify their commitment to nuclear safety.

In 2000, the Atomic Energy Act was amended, to strengthen nuclear safety, as follows:

• Increase of NSC member to guarantee more participation of specialists in the policy decision making process.
• Introduction of the Periodic Safety Review (PSR) to ensure that the safety of operating NPPs is maintained at current safety standards and practices.
• Introduction of the Standard Design Certificate to streamline the licensing process for the construction of NPPs with same design.
• Introduction of the ICRP Pub. 60 on a step-by-step basis with full implementation starting in January 2003.

In 2001, the government issued the charter of nuclear safety to inspire the accountability and responsibility in securing nuclear safety.

In 2002, the regulatory organization established the safety performance indicator (SPI) system which is composed of 11 indicators for the periodic evaluation of safety level of all NPPs.

In 2003, the MOST designated the first Tuesday of every month as "Nuclear Safety Review Day". During the day, various events are conducted such as Video-Conference with concerned organizations for enhancing nuclear safety culture, self assessment of nuclear facilities, safety meetings for senior manager's safety instruction or delivery of top management's safety message.

In 2006, the Nuclear Safety Commission resolved "the policy direction of nuclear safety regulation" which involved to ensure the comprehensive safety of NPPs by means of Risk Informed Regulation. As a result, Risk-informed Regulation Implementation Plan (RIPIP) was established by the Korea Institute of Nuclear Safety (KINS).

B. Waste Management

Basic Policy

The Atomic Energy Commission (AEC) stated that the safe and effective radioactive waste management is the basis for the harmonized development of the nuclear industry. The basic policy that the AEC emphasizes is as follows;

• The Direct Control by the Government : Radioactive waste which needs the long-term management shall be managed under the responsibility of the government.
• Safety First: To protect the individuals and the environment, radioactive waste shall be safely managed by considering biological and environmental impacts. Everyone must observe international norms on the safety of the radioactive waste management.
• The Minimization of production of the radioactive waste: Radioactive waste from the nuclear power plants and the radioisotope's utilities shall be minimized.
• The Principle of "Polluter Pays": Radioactive waste generators must bear expenses for the radioactive waste management at the point of generation without imposing undue burden on the future generations.
• The Transparency of the Radioactive Waste Management: The radioactive waste management shall be managed transparently and openly to enhance public understanding and acceptance. And related projects shall be promoted based on both harmonization and development of local community.

Project Plan

- Construction and Operation of Facility for Disposal of Low and Intermediate Level Radioactive Wastes

• Disposal site : Kyoung-Ju (next to Wolsong NPP site)
• Disposal capacity : initial 100,000drums (final 800,000 drums)
• Disposal capacity and type

• Operation start year: 2009

- Construction and Operation of the Interim Storage Facility for Spent Fuels

• Storage of Spent Fuels at the nuclear site to 2016 by expanding the capacity of the temporary storage facility
• The policy of the final management : to be determined later by considering the national policy and the technological development etc.

- Research and Development

• Treatment and disposal of low and intermediate level radioactive wastes
• Storage and transportation of spent fuels

REFERENCES

Appendix 1

INTERNATIONAL (MULTILATERAL AND BILATERAL) AGREEMENTS

BILATERAL AGREEMENTS

• Agreement for Co-operation between the ROK and the USA concerning Civil Uses of Atomic Energy, in effect since 1956.
• Agreement, on Technical Co-operation between Korea and France; in effect since 1974.
• Agreement between Korea and France for the Peaceful Uses of Nuclear Energy, signed in April 1981.
• Agreement between Korea and Canada for Co-operation in the Peaceful Uses of Atomic Energy, in effect since 1976.
• Agreement between Korea and Australia concerning Co-operation in Peaceful Uses of Nuclear Energy and the Transfer of Nuclear Materials, in effect since 1979.
• Notes between Korea and Japan for co-operation in the field of peaceful uses of nuclear energy, exchanged in May 1990.
• Protocol on co-operation in the field of peaceful uses of nuclear energy between the Ministry of Science and Technology of the ROK and the Ministry of Atomic Power and Industry of the USSR, in effect since December 1990.
• Agreement between the ROK and the UK for co-operation in the peaceful use of nuclear energy, signed in November 1991.
• Protocol between the Ministry of Science and Technology of the Republic of Korea and National Nuclear Safety Administration of the People's Republic of China on Cooperation in Nuclear Safety Matters in effect since April 1995.
• Arrangement between the Ministry of Science and Technology (M.O.S.T.), Republic of Korea, and the Nuclear Regulatory Commission(U.S.N.R.C.), United States of America, for the Exchange of Technical Information and Cooperation in Regulatory and Safety Research Matters in effect since June 1995.
• Agreement between the Government of the Republic of Korea and the Government of the Socialist Republic of Vietnam for Cooperation in Research into the Peaceful Uses of Nuclear Energy in effect since January 1997.
• Agreement between the Government of the Republic of Korea and the Government of the Argentine Republic for Cooperation in the Peaceful Uses of Nuclear Energy in effect since September 1997.
• Agreement between the Government of the Republic of Korea and the Government of Romania for Cooperation in the Peaceful Uses of Nuclear Energy in the fields of Industry, Research and Development in effect since September 2004.

Appendix 2

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES