Busan has become the first region in South Korea to begin construction of manufacturing infrastructure for small modular reactors (SMR), as competition intensifies in the next-generation nuclear power industry. The city aims to secure a technological foundation for small and mid-sized nuclear equipment companies to gain an early foothold in the future nuclear market.
The Busan Metropolitan Government announced on the 9th that it held a groundbreaking ceremony for the SMR Auxiliary Equipment Manufacturing Support Center at the construction site in Gangseo District. Among three regions selected in the government's competitive bidding process for SMR manufacturing support centers, Busan is the first to break ground—ahead of both South Gyeongsang and North Gyeongsang provinces.
SMRs are considered next-generation nuclear technology with generating capacity of approximately 300 megawatts—smaller than conventional large-scale nuclear plants. The technology enables factory fabrication of major components followed by on-site assembly, reducing construction time and costs. As major countries worldwide race toward commercialization, competition to establish related industrial ecosystems has intensified.
The city will invest a total of 29.5 billion won to construct the two-story support center. Completion is targeted for next year, with 12 types of core manufacturing equipment including electron beam welding and laser cladding to be installed by 2027.
The Korea Institute of Machinery and Materials will oversee operations, while Busan Techno Park will handle prototype production and corporate technical support. Korea Maritime and Ocean University will manage workforce training programs, and the Korea Nuclear Equipment Association will participate in building a platform for disseminating industrial achievements.
The center's core function is to provide manufacturing technology support to small and mid-sized nuclear equipment companies. While large corporations currently lead SMR core reactor technology development, small and medium enterprises handle substantial portions of auxiliary equipment manufacturing technology. However, many companies struggle to independently establish expensive equipment and testing facilities, creating a bottleneck for industry growth.
The city plans to provide shared equipment access and prototype production support through the center, establishing a foundation for local companies to participate in next-generation nuclear supply chains.
This project is also part of Busan's strategy to build a "full-cycle ecosystem" for the nuclear industry. The decommissioning of Kori Nuclear Power Plant Unit 1—Korea's first commercial nuclear reactor—is underway in Busan, creating conditions to simultaneously develop both the nuclear decommissioning industry and next-generation nuclear manufacturing.
The city plans to establish an industrial structure spanning from SMR equipment manufacturing to nuclear decommissioning, positioning itself as a new hub for the nuclear power industry.
Mayor Park Hyung-joon said, "Busan has become the first in the nation to break ground on an SMR auxiliary equipment manufacturing support center, taking the lead in securing the next-generation nuclear equipment market. We will actively provide support to enhance the technological competitiveness of local companies and serve as a forward base for entering global markets."
