The large nuclear power site has been selected in Yeongdeok, North Gyeongsang Province, while Gijang, Busan, has been chosen for a small modular reactor (SMR). As demand for electricity is expected to rise due to expansions in AI data centers and semiconductor factories, the site selection process for new nuclear power projects has concluded.
The New Nuclear Site Evaluation Committee announced the results of its selection on June 17, in accordance with the 11th Basic Plan for Power Supply and Demand. This plan aims to construct two large nuclear reactors with a total capacity of 2.8GW and one SMR demonstration reactor with a capacity of 0.7GW, totaling 3.5GW.
The two large reactors are expected to be operational in 2037 and 2038, while the SMR demonstration reactor is targeted for 2035-2036. The new 3.5GW nuclear power capacity will represent approximately 13.4% of the current domestic nuclear capacity of 26.05GW.
If currently operating reactors continue to run, the number of large reactors in South Korea could increase to 32 by 2038. This is the first time new nuclear sites have been selected since 2011.
Trump: Iran MOU is not a 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 act in accordance with the agreement's intent.
According to Reuters on June 17, during the G7 summit in Évian-les-Bains, France, Trump referred to the Iran MOU as “an understanding” and emphasized that it is “not a final agreement.”
He added, “If it doesn’t please me, we will start shooting at them again and dropping bombs,” indicating that military action could quickly resume if Iran fails to comply.
Trump also clarified that the MOU does not include immediate sanctions relief for Iran, stating, “We will discuss the issue of sanctions relief later.”
[Summary] U.S. has already pledged half of $300 billion Iran reconstruction fund
The U.S. and Iran's peace MOU includes a plan to establish a $300 billion private fund for Iran's reconstruction, with reports indicating that more than half of the total fund has already been pledged, including participation from South Korean companies.
On June 16, Reuters reported that the U.S.-Iran peace MOU includes provisions for creating a $300 billion private fund for Iran's reconstruction, with sources familiar with the agreement stating that over half of the amount has already been pledged.
The Financial Times previously reported that during the U.S.-Iran peace negotiations, discussions included easing sanctions on Iran alongside the establishment of the $300 billion 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 companies, as well as firms from Asia, including South Korea and Japan, and U.S. companies 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
In Seoul, 40% of apartments are now valued at over 1.5 billion won. Following the implementation of loan regulations in October last year, demand shifted towards homes priced below 1.5 billion won, but prices have continued to rise, leading to an increase in the proportion of apartments exceeding this threshold. New developments in areas outside Gangnam, such as Nowon, Dongdaemun, and Seongbuk, have seen transactions in the range of 1.6 billion to 1.8 billion won, indicating a weakening of the '1.5 billion won barrier.'
According to data analyzed by Real Estate 114, prior to the loan regulations implemented on October 15 last year, 32.83% of Seoul apartments were priced above 1.5 billion won as of October 3. By June 12, this figure had risen to 39.70%, an increase of 6.87 percentage points. Conversely, the proportion of apartments priced below 1.5 billion won 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. Apartments priced below 1 billion won decreased from 691,495 units to 565,291 units, a drop of 126,204 units. In contrast, apartments exceeding 1.5 billion won increased from 507,546 units to 583,093 units, an increase of 75,547 units.
Bank of Korea warns of inflation risks from corporate bonuses
The Bank of Korea is closely monitoring the potential for increased demand-side inflation pressures due to rising wages and economic recovery. Large bonuses paid by major IT companies, such as Samsung Electronics and SK Hynix, could stimulate consumer spending and wage increases in other sectors, thereby raising inflationary pressures.
On June 17, the Bank of Korea identified rising wages and increased consumption as key variables influencing future inflation trends in its report on the status of its price stability goals. Higher wages can enhance household consumption capacity while also increasing corporate labor costs, potentially prolonging inflationary trends.
The Bank is particularly attentive to the large bonuses recently distributed by major IT companies, which could lead to broader wage inflation. If high bonuses in specific sectors stimulate consumer spending and raise expectations for wage increases, inflation could accelerate further.
President Lee: Global economic imbalance challenges require inclusive growth
President Lee Jae-myung attended the second session of the G7 summit in Évian-les-Bains, France, focused on restoring balanced, inclusive, and sustainable economic growth. He discussed cooperation strategies with other leaders to address global economic imbalances and promote worldwide economic growth.
The session included G7 leaders and heads of five invited countries, as well as 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 is facing 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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