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GOV’T TO EXTEND POWER GENERATION PERMITS
입력 2021.02.23 (15:09) 수정 2021.02.23 (16:45) News Today
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[Anchor Lead]

The government has decided to extend power generation permits for the Shin-Hanul reactors 3 and 4, which had been suspended due to the Moon Jae-in administration's policy to phase out nuclear power generation. With billions of won already invested in the reactors' construction, it will be up to the next administration whether or not to proceed with the project.

[Pkg]

Shortly after his inauguration, President Moon Jae-in announced a policy to phase out nuclear power generation.

[Soundbite] Pres. Moon Jae-in(June 19, 2017, ceremony marking termination of Kori-1 reactor) : "I will do away with the power generation policy centered on nuclear power and usher in the era of zero nuclear power. I will cancel all plans for building new reactors."

As a result, construction of the Shin-Hanul reactors 3 and 4 was suspended even before it broke ground. It had initially aimed the completion date to 2023. The power generation permit for the two reactors was issued by the previous administration four years ago. If the construction plan approval had not been given the green light by February 27, the power generation permit would have to be cancelled altogether. The government has eventually decided to extend the permit to 2023. In other words, the project is still valid.

[Soundbite] Choi Shi-ye(Korea Hydro & Nuclear Power) : "As a public corporation, the Korea Hydro & Nuclear Power is obliged to follow the government's energy policies. We will devise follow-up measures in line with government policies."

The major factor behind the decision lies with the so-called "sunk cost." So far, more than 700 billion won has been invested in the preliminary manufacturing and design of the reactors. If the project is scrapped, the money will be lost for good. And there is no way to make up for such huge losses.

[Soundbite] Seo Ki-woong(Ministry of Trade, Industry and Energy) : "This was done to prevent business losses of the Korea Hydro & Nuclear Power that it might have sustained had the permit been cancelled. It's a temporary measure until there is a better way to terminate the project without causing serious problems."

It's a catch-22 situation: if the reactors' construction is given the green light, it will run counter to the current administration's policy; if it's scrapped, the losses will be unbearable. In the end, the final decision on the reactors' fate will have to be decided by the next administration.
  • GOV’T TO EXTEND POWER GENERATION PERMITS
    • 입력 2021-02-23 15:09:25
    • 수정2021-02-23 16:45:34
    News Today
[Anchor Lead]

The government has decided to extend power generation permits for the Shin-Hanul reactors 3 and 4, which had been suspended due to the Moon Jae-in administration's policy to phase out nuclear power generation. With billions of won already invested in the reactors' construction, it will be up to the next administration whether or not to proceed with the project.

[Pkg]

Shortly after his inauguration, President Moon Jae-in announced a policy to phase out nuclear power generation.

[Soundbite] Pres. Moon Jae-in(June 19, 2017, ceremony marking termination of Kori-1 reactor) : "I will do away with the power generation policy centered on nuclear power and usher in the era of zero nuclear power. I will cancel all plans for building new reactors."

As a result, construction of the Shin-Hanul reactors 3 and 4 was suspended even before it broke ground. It had initially aimed the completion date to 2023. The power generation permit for the two reactors was issued by the previous administration four years ago. If the construction plan approval had not been given the green light by February 27, the power generation permit would have to be cancelled altogether. The government has eventually decided to extend the permit to 2023. In other words, the project is still valid.

[Soundbite] Choi Shi-ye(Korea Hydro & Nuclear Power) : "As a public corporation, the Korea Hydro & Nuclear Power is obliged to follow the government's energy policies. We will devise follow-up measures in line with government policies."

The major factor behind the decision lies with the so-called "sunk cost." So far, more than 700 billion won has been invested in the preliminary manufacturing and design of the reactors. If the project is scrapped, the money will be lost for good. And there is no way to make up for such huge losses.

[Soundbite] Seo Ki-woong(Ministry of Trade, Industry and Energy) : "This was done to prevent business losses of the Korea Hydro & Nuclear Power that it might have sustained had the permit been cancelled. It's a temporary measure until there is a better way to terminate the project without causing serious problems."

It's a catch-22 situation: if the reactors' construction is given the green light, it will run counter to the current administration's policy; if it's scrapped, the losses will be unbearable. In the end, the final decision on the reactors' fate will have to be decided by the next administration.
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