The South Korean government has selected Yeongdeok in North Gyeongsang Province as a site for a large nuclear power plant and Gijang in Busan for a small modular reactor (SMR). This decision comes as electricity demand is expected to rise due to expansions in AI data centers and semiconductor factories, marking a significant step in the new nuclear power project.
On June 17, the New Nuclear Site Evaluation Committee announced the results of its site selection in accordance with the 11th Basic Plan for Power Supply and Demand. The plan aims to construct two large nuclear reactors with a combined capacity of 2.8GW and one SMR demonstration reactor with a capacity of 0.7GW, totaling 3.5GW.
The two large reactors are scheduled to be operational in 2037 and 2038, while the SMR demonstration reactor is targeted for 2035-2036. The new 3.5GW capacity represents approximately 13.4% of the current domestic nuclear power capacity of 26.05GW.
If existing reactors continue to operate, the number of large reactors in South Korea could increase to 32 by 2038. This marks the first selection of new nuclear sites since 2011.
Trump: Iran MOU Not Final Agreement, Military Action Possible
U.S. President Donald Trump stated that the memorandum of understanding (MOU) regarding Iran is not a final agreement. He warned that military action could resume if Iran does not comply with the terms of the agreement.
On June 17, during the G7 summit in Évian-les-Bains, France, Trump referred to the Iran MOU as “just a memorandum” and emphasized that it is “not a final agreement.”
He added, “If it doesn’t suit me, we will strike them again and drop bombs,” indicating that military action could be reinstated if Iran fails to act appropriately.
Trump also clarified that the MOU does not include immediate sanctions relief for Iran, stating that the issue of sanctions relief would be addressed later.
[Summary] US Commits Half of $300 Billion Iran Reconstruction Fund, Includes Korean Firms
The U.S. and Iran's peace memorandum includes a plan to establish a $300 billion private fund for Iran's reconstruction, with reports indicating that over half of the total fund has already been pledged, including commitments from South Korean companies.
According to Reuters on June 16, the agreement outlines the creation of a $300 billion private fund for Iran's reconstruction, with more than half of the amount already pledged, as reported by sources familiar with the agreement.
The Financial Times previously reported that during the negotiations for the peace MOU, discussions included easing sanctions against Iran alongside the establishment of the reconstruction fund. The report highlighted interest from companies in Asia, Europe, and the U.S., including South Korean firms. A source familiar with the negotiations noted, “Many European, Asian, Korean, and Japanese companies, as well as U.S. firms, are showing interest. If sanctions are lifted, this fund could grow significantly.”
40% of Seoul Apartments Exceed 1.5 Billion Won, Loan Limit Under Pressure
Recent data shows that 40% of apartments in Seoul are priced above 1.5 billion won. Following the implementation of loan regulations in October last year, demand shifted towards homes priced below this threshold, but prices have continued to rise, increasing the proportion of apartments exceeding 1.5 billion won. New developments in areas outside Gangnam, such as Nowon, Dongdaemun, and Seongbuk, have seen transactions in the 1.6 to 1.8 billion won range, indicating a weakening of the '1.5 billion won threshold.'
According to an analysis commissioned by our publication from Real Estate 114, the proportion of apartments exceeding 1.5 billion won was 32.83% just before the loan regulations took effect on October 3 last year. As of June 12, this figure has risen to 39.70%, an increase of 6.87 percentage points. Conversely, the share of apartments priced below 1.5 billion won has decreased from 67.17% to 60.30% during the same period.
In terms of the number of units, the shift in price ranges is evident. The number of apartments priced below 1 billion won decreased from 691,495 to 565,291, a drop of 126,204 units. In contrast, the number of apartments exceeding 1.5 billion won increased from 507,546 to 583,093, an increase of 75,547 units.
Bank of Korea Warns of Inflation Risks from Wage Increases
The Bank of Korea has recently highlighted the potential for increased demand-side inflation pressures due to rising wages and economic recovery. Large bonuses distributed by major IT companies like Samsung Electronics and SK Hynix may stimulate consumer spending and wage increases in other sectors, contributing to upward pressure on prices.
On June 17, the Bank of Korea released a report titled 'Monitoring the Operation of Price Stability Targets,' identifying wage increases and expanded consumption as key variables influencing future price trends. Rising wages can enhance household purchasing power while simultaneously increasing corporate labor costs, potentially prolonging inflationary pressures.
The Bank of Korea is particularly monitoring the large bonuses recently awarded by major IT firms, which could lead to broader wage inflation. If high bonuses in specific sectors stimulate not only consumer spending but also expectations for wage increases, this could further exacerbate inflation.
President Lee: Global Economic Imbalance Must Be Addressed for Inclusive Growth
President Lee Jae-myung participated in the second session of the G7 summit's expanded meeting on 'Restoring Balanced, Inclusive, and Sustainable Economic Growth' held on June 17 in Évian-les-Bains, France. He discussed cooperation strategies with other leaders to mitigate global economic imbalances and promote worldwide economic growth.
The session included G7 leaders and the heads of five invited countries, along with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), and Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD).
President Lee emphasized that the world faces the challenge of global economic imbalance and proposed three cooperation strategies to overcome this issue and restore inclusive growth.
* This article has been translated by AI.
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