Nuclear Power's Time in South Korea: Lee Jae-myung's Shift and the Investment Opportunity of a Generation

The political tides are turning in South Korea, and with them, the energy landscape. Lee Jae-myung, the frontrunner in the 2025 presidential election, is championing a dramatic reversal of his country's energy policy, prioritizing nuclear power as a cornerstone of economic revival. This pivot—away from the previous administration's coal-heavy energy mix and toward atomic energy—creates a rare confluence of policy, economic, and geopolitical forces that investors should not ignore. For those willing to navigate near-term risks, this shift could be a once-in-a-decade opportunity to capitalize on nuclear infrastructure, engineering firms, and AI-driven energy efficiency plays.

The Policy Reversal: From Coal to Reactors

Lee's pro-nuclear stance is a direct response to the economic and energy challenges left by the Moon Jae-in administration, which phased out nuclear power to focus on renewables—a move that increased reliance on coal and burdened the state energy provider, Korea Electric Power Corp. (KEPCO), with $141.5 billion in debt. Now, Lee is pushing to revive nuclear energy as the backbone of South Korea's power grid. The catalyst? A massive economic project: the world's largest AI data center, announced in February 2024, which demands 3 GW of energy—equivalent to three nuclear reactors. This infrastructure alone underscores the scale of Lee's ambition to position South Korea as a tech and energy superpower.

But the stakes go beyond infrastructure. Lee's policy also seeks to stabilize KEPCO, which is critical to the broader economy. reveals the precarious financial state of the state-owned firm. Investors should monitor whether Lee's reforms—including potential privatization or partnerships with private firms—will unlock KEPCO's value.

Economic Drivers: Growth, Trade, and Tech

Lee's economic strategy hinges on leveraging nuclear energy to fuel industries of the future. The AI data center exemplifies this: it's not just about electricity but about attracting global tech firms to South Korea. Pair this with Lee's push to resolve U.S. trade tensions—such as the 25% tariffs on Korean auto exports—and you see a leader focused on removing barriers to growth.

could reveal a correlation between energy stability and economic health. With GDP growth stagnant at 2%, Lee's emphasis on nuclear power aims to reignite growth by ensuring cheap, reliable energy for manufacturing and tech.

Strategic Investment Opportunities

1. Nuclear Utilities and EPC Firms:
2. KEPCO: While its debt is a concern, its role as the sole nuclear operator in South Korea positions it to benefit from reactor restarts and new builds. Monitor its stock for signs of restructuring.

3. EPC Contractors: Firms like Doosan Heavy Industries, which builds reactors, and斗山重工 (Doosan Heavy Industries & Construction) stand to gain from new projects. These companies could see orders surge if Lee's plans materialize.

4. AI-Driven Energy Efficiency:
   The AI data center isn't just a power drain—it's a testbed for energy-saving tech. Companies like SK Hynix or Samsung Electronics, which develop semiconductors and data infrastructure, could dominate this space. Look for partnerships with utilities to optimize energy use.

5. Global Nuclear Plays:
   South Korea's shift could inspire other nations to re-examine nuclear energy. Investors might also consider global firms like Westinghouse (a unit of Brookfield Asset Management) or Orano (France's nuclear fuel specialist), which could supply critical components.

Risks: North Korea, Red Tape, and Debt

• North Korean Instability: While Lee opposes a South Korean nuclear deterrent (despite 70% public support), Pyongyang's provocations—such as aiding Russia in Ukraine—could strain the region. However, Lee's pragmatic stance avoids escalation, preferring dialogue.
• Regulatory Delays: KEPCO's debt and bureaucratic hurdles may slow reactor approvals. Monitor to gauge progress.
• Trade Uncertainties: U.S.-South Korea trade negotiations are critical. A failure to resolve tariffs could divert capital from energy projects to other industries.

Conclusion: A Long-Term Bet on Energy Security

Lee Jae-myung's nuclear revival isn't just about electricity—it's about securing South Korea's place in a carbon-constrained world and a tech-driven economy. While risks like KEPCO's debt or North Korean brinkmanship linger, the structural tailwinds are undeniable. Investors who allocate now to nuclear infrastructure, engineering firms, and AI energy tech could reap rewards as South Korea transitions from policy debate to project execution.

The question isn't whether nuclear power will return to South Korea—it's already happening. The real question is: will you be positioned to profit from it?

The time to act is now. The reactors are warming up—and so is the market.

Note: Always conduct thorough due diligence and consult with a financial advisor before making investment decisions.