South Korean government has halted construction of two nuclear reactors in the Shin Kori Complex that are already 30 percent built to gauge public opinions on whether to continue or kill the project as part of the new energy policy of weaning the country off nuclear power.

The government said in a statement that a committee will conduct a study and host hearings for the next three months to decide on the fate of the two plants under construction - Shin Kori 5 and Shin Kori 6 - located near the southeastern city of Busan.

The price of nixing the project would come to about 2.6 trillion won ($2.28 billion) as 1.6 trillion won is already spent on the construction and facilities must be dismantled and manufacturers reimbursed. The impact on the regional economy from the cancellation of the project also must be considered, said Hong Nam-ki, minister of the Office for Government Policy Coordination.

“We won’t immediately move into stopping the construction. We will go through public debate and respect the consensus,” he said.

The committee would be headed by the Prime Minister and comprise of about 10 members selected from a pool of private sector candidates while excluding people from the energy industry to avoid conflict of interests.

The news was a heavy blow to the builders. The two reactors have been built by a consortium led by Doosan Heavy Industries & Construction.

At 1:45 p.m. Wednesday, shares of Doosan Heavy were down 4.9 percent from the previous day and 6.3 percent from June 16 closing. On June 19, President Moon Jae-in announced the phase-out of fossil fuel- and nuclear-powered sources for electricity while permanently shutting down the oldest nuclear reactor Kori 1 on the same day.

Korea gets a third of its power supply from 24 nuclear reactors. The previous administration, based on a 15-year energy plan, embarked on the construction of two additional reactors to meet increased demand.

Industry experts fear spike in electricity bills when power generation shifts to imported natural gas and renewable energy.

By Ko Jae-man

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]