The Chaebol Returns To The Presidency 1967 [EN]: Chapter 52

52. Building a Nuclear Power Plant Without the National Budget

The Ministry of Science and Technology.

The President was attending the unveiling ceremony of the Korea Atomic Energy Agency, which fell under the Ministry of Science and Technology.

From its early days, South Korea had a keen interest in nuclear power.

The first person to champion nuclear energy in Korea was Syngman Rhee.

In 1956, Walker Cisler, the president of the American Power Association, visited President Syngman Rhee.

Cisler had been responsible for restoring the electrical systems in Europe that were destroyed during World War II.

Cisler explained that nuclear power emitted three million times more energy than coal.

President Rhee was immediately interested.

At the time, Korea was suffering from a severe energy shortage, and as president, he desperately needed nuclear power for postwar reconstruction.

The President immediately ordered the establishment of a nuclear energy division that year, placing it under the Ministry of Education since the Ministry of Science and Technology didn’t exist yet.

In 1958, the Atomic Energy Agency was established directly under the President, and the Atomic Energy Research Institute was established under it, marking the true beginning of nuclear energy in the Republic of Korea.

In 1959, Rhee even participated in the groundbreaking ceremony for the nation’s first 100kW thermal output reactor, breaking ground himself.

However, President Rhee, who had been actively promoting nuclear energy, was forced to step down from power due to the April Revolution [a student-led popular uprising].

The drifting nuclear reactor project was finally completed in 1962 by order of President Park Chung-hee after many challenges.

The first step was tentative and weak.

In 1967, the Atomic Energy Agency was expanded and reorganized into the Atomic Energy Agency under the Ministry of Science and Technology.

At the same time, the Science and Technology Office was upgraded to the Ministry of Science and Technology.

President Park’s ambition for nuclear energy was immense.

The President dramatically pulled the string, revealing the sign.

The clear letters on the sign were unveiled.

– Republic of Korea Ministry of Science and Technology Atomic Energy Agency

Clap! Clap! Clap!

Amidst the applause of researchers and officials, the President delivered a congratulatory speech.

“In the industrial age, energy is like blood flowing through our veins. Energy costs are factored into the price of all goods. We must lower costs to be price-competitive.”

Reporters diligently took notes of the President’s speech in shorthand.

“Nuclear power is three million times more efficient than coal. In the future, countries that develop nuclear power will dominate the market. We plan to begin construction of a large-scale nuclear power plant soon. Our talented people will research with all their efforts to complete this energy revolution.”

The newspapers ran headlines like ‘Declaring a Nuclear Energy Revolution’.

The President was trying to build a nuclear power plant more than three years earlier than Chairman Wang’s timeline to prepare for the Middle East oil crisis that would occur in a few years (1973).

During Chairman Wang’s time, the price of oil soared, shaking the foundations of the heavy and chemical industries that had been established.

If the dependence on oil could be reduced by at least half by then, Korean products would be able to surpass Japanese products and gain global competitiveness.

Another reason was nuclear armament.

Nuclear reactors were needed to secure plutonium, the raw material for nuclear weapons.

However, from the beginning, they faced significant obstacles.

* * *

The National Assembly’s audit hall.

The opposition party summoned the Minister of Science and Technology and aggressively questioned him.

“Minister, are you aware that the total construction cost of one nuclear power plant is 142.8 billion won [roughly equivalent to hundreds of millions of US dollars in today’s currency]?”

“I am aware.”

“142.8 billion won is an astronomical sum, enough to build four or five Gyeongbu Expressways [major highway in South Korea, each costing] (43 billion won each). But you’re saying you’re going to start building two at the same time? Minister, are you out of your mind?”

The President was planning to operate two units before the oil shock, using funds acquired from the Vietnam War.

“The initial costs are high, but…”

“I heard that heavy water reactors are much more expensive than light water reactors. Why are you trying to pour money into heavy water reactors? If you produced more fertilizer with that money and distributed it to rural areas for free, you could eliminate the spring famine immediately.”

“…….”

“Nuclear power plants are needed in advanced countries that build aircraft carriers and color TVs, but is that even possible in a developing country where agriculture is the foundation of the nation? Why do you keep trying to imitate advanced countries?”

“Well, nuclear power plants have huge initial investment costs, but once completed, they are so efficient that they can recover the investment costs within three to four years. From then on, they can replace oil and prevent a huge waste of foreign currency. It’s definitely not a waste.”

“Look here, Minister! Who do you think you’re fooling? Is a nuclear power plant something that can be built just by having the appearance like an apartment building? It’s a high-level science that condenses cutting-edge technology.”

“…….”

“All we’ve done is test-operate one 100kW reactor. Suddenly, you’re going to build two 678,000kW units? Even a child knows that’s absurd, isn’t it?”

“It is true that it is a highly advanced technology, but there was a promise between the leaders of both countries that the United States would cooperate in the construction of nuclear power plants. Initially, we will import technology and gradually increase the localization rate.”

The opposition lawmaker took off his gold-rimmed glasses and frowned.

“Now, let’s be honest. What is the real reason for trying to spend such an astronomical amount of money in three years?”

The minister looked puzzled.

“I don’t quite understand what you mean, Assemblyman.”

“There’s no better business than construction for laundering money. Especially nuclear power plants, where the costs aren’t as transparent as with apartments.”

“…….”

“Are you trying to launder money as political slush funds because dollars are flowing in from the Vietnam War and West Germany? There are presidential and general elections in three years.”

The opposition party suspected it was a scheme by the Blue House [South Korean presidential residence] to secure political funds.

The minister strongly denied it.

“Absolutely not. Japan introduced nuclear power 15 years earlier than us and created the Nuclear Energy Basic Law. The former Prime Minister is in charge of the Joint Nuclear Energy Committee of both houses and is leading Japan’s nuclear power development. If nuclear power lags behind Japan, we will not be able to escape from being a subcontracting country that uses all Japanese products or assembles Japanese parts, despite our cheap labor. Please judge with a long-term perspective.”

“Minister, don’t invoke Japan. We, whose national income is less than half of Japan’s, are trying to imitate advanced countries, which is no different from a materialistic woman who is obsessed with luxury.”

“Assemblyman, we will transparently report the construction costs to the National Assembly. So…”

“Minister, build as many nuclear power plants as you want. But the opposition party cannot support a single penny of the national budget. This is the opposition party’s position.”

The opposition party’s stance was published in the newspaper.

Public opinion was somewhat in favor of the view that nuclear power was premature.

* * *

The ruling party’s headquarters.

The Prime Minister met with the leader of the ruling party.

The Prime Minister asked.

“Are we going to put it to a vote? What is the Blue House’s intention?”

“We have more than a majority of seats, so we have the votes. But His Excellency wants to end the National Assembly discussion here.”

“End it? Are we giving up then?”

“That’s my understanding.”

“Hmm, to be honest, the ruling party wasn’t too keen on the astronomical nuclear power plant construction either. I was curious about His Excellency’s intentions, but this is good.”

“Something’s strange, very strange.”

“What is it?”

“His Excellency pushes ahead with policies he’s decided on even if the sky falls apart, but he’s giving up so easily. He’s not someone who’s afraid of being labeled a dictator…”

“…….”

The nuclear power plant construction was being led by the opposition party and was increasingly leaning towards opposition.

The President was not giving up but was looking for another breakthrough.

* * *

Wolseong, Gyeongbuk [a region in South Korea].

A helicopter was landing on a deserted field.

The President was walking with President Chung [likely referring to Chung Ju-yung, founder of Hyundai] and talking.

The President burst out in frustration.

“Are they saying that they won’t come to their senses until the price of oil rises tenfold or twentyfold and they can’t get it, so they have to close the factory and have blackouts at night! Leaders should look ahead 10 years, 100 years, but they’re just trying to get votes in their own term and their own district. It’s really frustrating, really frustrating!”

“Haha, now you can understand my feelings a little bit.”

“President Chung knows how lonely it is to be the only one who knows the future. President Chung, I have the certainty of the future because I’m a returnee, but how did you push ahead with businesses that you didn’t even know what would happen before? I can’t help but pay my respects to that foresight.”

The foresight was not only about the conviction of nuclear power.

At that time, Japan was a huge economic powerhouse that could not be compared to Korea, but it chose inexpensive boiling water reactors instead of expensive pressurized water reactors.

However, Korea adopted pressurized water reactors, which were much more expensive to build, in those difficult times.

This choice ultimately shaped the future of both Korea and Japan.

The Fukushima nuclear power plant, a boiling water reactor, exploded, causing a national disaster for Japan.

In the 21st century, the Republic of Korea has become a leading nuclear power country, ranking among the top 5 or 6 in the world in terms of nuclear power generation.

Boasting the world’s strongest safety, efficiency, economy, and technology, the Korean-style reactor has become the world standard, exporting nuclear power plants to the UAE and is the best in the world.

In the future, with accumulated reactor technology, it will secure SMR (small modular reactor) technology with the highest price competitiveness in the world, leading to hundreds of trillions of exports, and will also proactively enter the nuclear power plant decommissioning market, which amounts to 1,000 trillion won.

President Chung said.

“What I did wasn’t all good and successful, but I believed that we could fully adopt the industries that had been realized in developed countries, so I skipped the modernization and industrial development process and transplanted them. Otherwise, we would be stuck as a subcontracting country of developed countries forever.”

“Amazing, amazing.”

“Since Your Excellency knows the future better than I do, you will be even more lonely because you have to accelerate more and look further ahead.”

“Sigh, anyway, this nuclear power plant budget will be very difficult. Even public opinion is mostly against it.”

“If you have conviction, you should push ahead without hesitation.”

However, the President didn’t want to be called a dictator.

He didn’t want to follow President Chung’s path exactly.

If he was a returnee, he had to find a solution as a business manager, not a soldier.

The President said.

“I’ve been thinking about a different method.”

“Do you have a good idea?”

“To build a nuclear power plant without using the national budget.”

“What? Without the national budget? It’s not just a few pennies, is that even possible?”

“It’s possible if President Chung helps me.”

“I’m prepared to do anything if there’s a way to help…”

“To build with private capital.”

“Private capital?”

“Hyunse Construction will build with Hyunse’s money.”

“Hyunse?”

“American companies and KEPCO [Korea Electric Power Corporation] will jointly place the order, and Hyunse will construct it. The construction cost will be repaid annually by selling electricity to KEPCO when the nuclear power plant is in operation. It’s a kind of deferred payment construction.”

“Ah, deferred payment construction! There was such a method!”

“We will create a law that allows us to sell electricity to Korea Electric Power Corporation. And we will take measures to ensure that Hyunse monopolizes the reconstruction project in Vietnam.”

“Hmm, we can invest the money we earned in Vietnam. I was a soldier, so ‘If I tell you to do it, just do it!’ was my specialty, but businessmen know how to manage money. Your Excellency, don’t worry. We will complete the construction of the nuclear power plant even if we have to put Hyunse in entirely.”

“Ah, thank you. It’s all being done on President Chung’s foundation, so I should be the one thanking you.”

“Hahaha.”

“Now, there’s a bigger task that we really need to solve.”

“Hmm, that’s right.”

President Chung seemed to have already guessed.

The President asked.

“It’s about nuclear weapons development. How far have you developed it?”

“We completed the mid-range missile Baekgom [White Bear] within my term, and only the nuclear warhead test remained.”

“Ah, it was almost complete.”

“That’s right.”