1、EQUITY:ALTERNATIVE ENERGYKorea energyGlobal Markets Research13 August 2025Koreas nuclear power looks competitive(2)Global shift towards nuclear power appears to be in early stages;maintain Buy on KEPCO Global shift to nuclear power appears to be in nascent stage After publishing our last report on t

2、he global nuclear power industry,we received investor questions around how KEPCOs(015760 KS,Buy)financials would benefit from this trend.We broadly assessed the progress of nuclear power projects large reactors as well as small module reactors(SMR)and understand that SMRs in particular are in very e

3、arly stages,as only three SMRs are currently operating globally(in China,Russia and Japan),while seven SMRs have been approved to begin construction(Fig.3).SMRs are new,smaller types of nuclear power reactors with capacity of up to 300MW per unit(one-third the size of large nuclear reactors),with co

4、sts being 10-15%of traditional large reactors and construction periods being shorter at 3-5 years.The share prices of US-listed SMR companies have rallied year-to-date(up 187%on average),reflecting increased nuclear demand potential until 2050F(Fig.2).US policy(quadrupling nuclear capacity)is main d

5、river of rally in nuclear shares Following the enacting of the Accelerating Deployment of Versatile,Advanced Nuclear for Clean Energy(ADVANCE)Act in July 2024,the US aims to revitalize US nuclear energy via streamlining regulation and reducing licencing costs.In May 2025,the Trump administration iss

6、ued executive orders to quadruple US nuclear capacity from 100GW(27%of global capacity)to 400GW by 2050E(link),and to speed up the building of an onshore nuclear supply chain via fast-track licensing and promoting demand for military/AI applications.The US will promote its nuclear ambition via setti