Yeongdeok County in North Gyeongsang Province has been selected as the site for a large nuclear power plant, while Gijang County in Busan will host a small modular reactor (SMR). This decision comes as electricity demand is expected to rise due to the expansion of AI data centers and semiconductor factories, marking a significant step in the site selection process for new nuclear power projects.
The New Nuclear Site Selection Evaluation Committee announced the results of its 11th meeting on June 17, in accordance with the 11th Basic Plan for Power Supply and Demand. The plan aims to construct two large 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 expected 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 South Korea's current 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 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 comply with the terms of the agreement.
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 shoot at them again and drop bombs,” indicating that military action could quickly resume if Iran fails to act appropriately.
Trump also clarified that the MOU does not include immediate sanctions relief for Iran, stating that discussions on sanctions relief would occur later.
[Summary] U.S. Commits Half of $300 Billion Iran Reconstruction Fund; Korean Firms Involved
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 agreement includes provisions for the creation of a $300 billion reconstruction fund for Iran. Sources familiar with the agreement noted that over half of this amount has already been committed.
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 FT highlighted interest from companies in Asia, Europe, and the U.S., including South Korea. A source familiar with the negotiations stated, “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 Limits 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 toward homes priced below 1.5 billion won, but rising prices have led to an increase in the proportion of apartments exceeding this threshold. New developments in areas outside Gangnam, such as Nowon, Dongdaemun, and Seongbuk, are seeing transactions in the 1.6 to 1.8 billion won range, indicating a weakening of the “1.5 billion won barrier.”
According to an analysis commissioned by this newspaper from Real Estate 114, the proportion of apartments exceeding 1.5 billion won was 32.83% on October 3, just before the loan regulations took effect. As of June 12, that figure has 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.
The shift in price brackets is also evident in the number of units. 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 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 awarded by major IT companies such as Samsung Electronics and SK Hynix could stimulate consumer spending and wage increases in other sectors, contributing to upward pressure on prices.
In a report on June 17 titled “Monitoring the Situation of Price Stability,” the Bank identified wage increases and expanded consumption as key variables influencing future price trends. Higher wages can enhance household purchasing power while simultaneously increasing corporate labor costs, potentially prolonging inflationary pressures.
The Bank is particularly attentive to the large bonuses recently distributed by IT companies, which could lead to broader wage inflation. If high bonuses in specific industries stimulate consumer spending and raise wage expectations, this could further exacerbate inflationary trends.
President Lee: Global Economic Imbalance Must Be Addressed for Inclusive Growth
On June 17, President Lee Jae-myung participated in the second session of the G7 summit in Évian-les-Bains, France, focusing on restoring balanced, inclusive, and sustainable economic growth. He discussed strategies for mitigating global economic imbalances and promoting worldwide economic growth with fellow leaders.
The session included G7 leaders and the 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 collaborative measures to overcome this issue and restore inclusive growth.
He stressed the need for countries to pursue practical discussions and international cooperation based on trust and collaboration to alleviate global imbalances.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.