President Lee warns against giving steel giants cheap nuclear power

President Lee Jae Myung warned that offering preferential nuclear electricity to a small number of steelmakers would let those firms enjoy low-cost power while the public shoulders the associated risks and social costs. In a post on X, he referenced a Korea Economic Daily story that the Ministry of Climate, Energy and Environment has turned down proposals for nuclear power purchase agreements targeting energy-intensive industries.

The ministry said allowing a single consumer to monopolise cheap nuclear power could increase procurement costs for Korea Electric Power Corp., potentially raising electricity bills for households and other manufacturers. Lee noted that approving such a deal for one steelmaker might prompt similar requests from other sectors, including semiconductors. The issue arises as the steel industry pushes for hydrogen-based production, which requires large amounts of affordable electricity, especially after the EU’s Carbon Border Adjustment Mechanism took effect. Lee’s comments followed the recent launch of the Korean Green Transformation strategy, which prioritises decarbonising steel and other heavy industries.