NPPinKorea-1 Conclusion 1

8/14/2019 NPPinKorea-1 Conclusion 1

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TheDevelopment ofTheDevelopment of

theNuclear Power IndustrytheNuclear Power Industry

in Koreain Korea


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IntroductionIntroduction

After the Korean war in 1953 the countrywas in absolute poverty with no nucleartechnology at all.

Korea today has 20 nuclear power plants,producing 36% of the total energyconsumption.

It is part of the OECD and reaches rank 6 in

nuclear power generation with 95%localized nuclear power technology.

How was is possible to get to todaysstate so quickly?


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Evolution of nuclear powerEvolution of nuclear power

program in Koreaprogram in Korea

Stage 1 : Preparation

Stage 2 : Implementation of Foreigntechnology

Stage 3 : Acquisition of peripheraltechnology

Stage 4 : Acquisition of core technology

Stage 5 : Improvement of foreigntechnology


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NSI: Decision to build nuclearNSI: Decision to build nuclear

power plantspower plants Market Pull

Korea is lacking natural resources like gas, coal or oil.

Energy consumption grew through growth of economy.

The Government introduced a master plan to build twonuclear power plants in 1968 after a feasibility study by

IAEA. The local national firm, the Korea Electric Power

Corporation (KEPCO) was to be taking charge of theconstruction and operation of the plants.

After a study by KAERI researchers, who where trainedabroad, the US company Westinghouse was given to

contract to build the first nuclear power plant in Korea in1971.


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Stage 1 : PreparationStage 1 : Preparation

Stage 2 : Implementation of ForeignStage 2 : Implementation of Foreign

technologytechnology

Stage 3 : Acquisition of peripheralStage 3 : Acquisition of peripheral


Stage 4 : Acquisition of core technologyStage 4 : Acquisition of core technology

Stage 5 : Improvement of foreignStage 5 : Improvement of foreigntechnologytechnology


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Technology Diffusion:Technology Diffusion:

Participation in Work on theParticipation in Work on the

Power PlantsPower Plants The first three nuclear power plants were completelyon a turnkey basis. Korea did not have any knowledge about

architecture engineering, so it was decided to gainknowledge by working together with a western

company: 1975 a joint venture was established between a Korean

company and Burn and Roe, but no real knowledgecould be acquired due to conflicts with Bechtel, theprime contractor for the second plant who wantedexclusivity.

Participation on civil engineering was extremelylimited: The only domestic firm being able to accountin about 5% of total construction cost was Hyundai,helping with site drawings under expert supervision.


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Technology Diffusion: PowerTechnology Diffusion: Power

Plant OperationPlant Operation

Technical emphasis was largelyplaced on acquisition of operationtechniques for self-operation of the

turnkey reactors:

Overseas training of about 200operators in the 1970s

Consulting of advanced technicalengineering services for quality controland pre-operational testing.


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Assimilation of detailed designAssimilation of detailed design


During 4th and 5th plants construction KEPCO made a contract with Bechtel Corporation to

acquire architecture engineering knowledge

During the construction, KOPEC (Korean Power

Engineering Services Company) engineers workedtogether with Bechtel engineer for 3 years


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1978, 28 Korean engineers were sentto be trained at Bechtel for 3 months

After return, they participated in various

design works and mastered their design skilland pass on their know-how intoorganization level.


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To prepare for 6th and 7th, KOPEC sent 42engineers to Belgatom company inBelgium to create the knowledge base in

1979.


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During 6th and 7th plants construction

KOPEC sent 58 engineers to Bechtel(including the engineers that were sent to

Belgatom) Some detailed design work was done by

Korean engineers

The experience of these engineers are

documented to prepare for the next project


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Localization Rate of Nuclear Power Plants (Percent)

0

10

20

3040

50

60

70

80

Plant 1 Plant 2 Plant 3 Plant

4,5

Plant

6,7

Plant

8,9

Plant

10

Perc

en

Architecture Engineering Equipment


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Summary of this stageSummary of this stage

Domestics firms had some involvements inconstruction.

Engineers were sent to train with foreign firms.

Some of the designs of the plants were made by

Korean engineers.

Korean company was responsible for minor assembly,and major assembly later.

Plants parts were reverse-engineered.

Parts of the plants were successfully manufactured.


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National Innovation SystemNational Innovation System

1. Nuclear Policy was successfully integrated with the technologydevelopment policy.

2. The Government Amendment on The Promotion Law ofTechnical Engineering Service.A local engineering service firm must be a prime contractor in any case of

engineering project ordered by a domestic client. While any foreignfirm need government approval to be a prime contractor.

2. The Government made The Master Plan for TechnologicalLocalization of Nuclear Power Plants . Domestic firm should beprime contractors in the succeeding nuclear reactor project.

3. Plan to enhance the technological level from 60% to 95% levelof foreign technology until 1995.

4. Under the initiative of KEPCO, Electric Power Group CorporationCouncil (EPGCC) composed of related firms and researchinstitutes.


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Technology DiffusionTechnology Diffusion

1. Measures for upgrading the technological levelare as follow :

1. International technology transfer

2. Indigenous R&D and efforts

3. Learning by doing


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2. Packaged technology transfer based on the contract asforeign sub-contractor.

3. Acquisition of basic design technology Select Sargent and Lundy (S and L) as foreign donor for the technological knowledge

of basic design and to conduct A-E works together.

Sent 100 engineer to participated in conceptual design process with S&L inAmerica.

More knowledge assimilation of the KOPEC and S&L in Korea.

Diffusing the knowledge to other Korean while conducting detail design and otherrelated works. (training of KOPEC engineers, the application of the transferredsoftware, the preparation of technical standard specification and guidelines, in-houseR&D to improve the imported technologies). Converting the transferred explicitknowledge into tacit knowledge.

KOPEC engineers participated in the whole process of A-E works in the 10th and 11thnuclear projects with the same level of responsibility as those of S&L.


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4. Acquisition of NSSS (Nuclear Steam Supply System) designtechnology Contract with Combustion Engineering (CE) as a foreign partner for

NSSS.

CE transferred packaged technology with a set of explicit knowledge.

Training of KAERI engineers at Seoul and CE sites

Joint work on NSSS design at the ratio of one to one.

Participating in CEs on-going R&D projects 51 KAERI Researchers lived together in an apartment near CE for 1.5

years, kept a record of what are they learning during the time, andhad a group reviews all the time.

Internalization the NSSS technology at KAERI : training program forsimulated design and repeated design work, in-house R&D.

KAERI spend 53% of KEPCOs total R&D expenditures during the

project period to convert explicit design knowledge into tacitknowledge.


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Stage 4 ResumeStage 4 Resume

National initiative Master Plan forTechnological localization

Good contract deal to absorb explicit

knowledge taking advantage of the lowmarket demand on nuclear project.

Excellent process to build tacit

knowledge from the explicit knowledge.


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Development of the Korean StandardDevelopment of the Korean Standard

Nuclear Power Plant.Nuclear Power Plant.

Having explicit and tacit knowledge also experienceon building nuclear reactor.

Next Koreans target is to construct a nuclear powerplant in a complete indigeneous technological

capability called Korean Standard Nuclear Power Plant(KSNPP).

The design improvement :

Developed based on Korean Geological situations

Improved safety, efficiency, and convenience in operation

and maintenance.


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Exporting KS-NPPExporting KS-NPP

President Lee MyungBak shakinghands with his UAE counterpart after

the nuclear reactor export wasdecided.

e-clipping from The New YorkTimes


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Conclusion

Korea had succesfully done a technological localizationstrategy in developing its own nuclear power industry.

The process has been progressed through preparation,implementation of foreign technology, acquisition ofperipheral and core technology, finally improvement of

foreign technology. The above process have shown a good and systematic

technological learning in absorbing foreign technologyand finally have its own technology standard.

The Koreans strategy might be very useful for otherLess Developed Country in developing nuclear power

industry or other industries.

NPPinKorea-1 Conclusion 1

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