South Korea, the United States, and Japan have signed a memorandum of cooperation (MOC) to jointly pursue small modular reactor (SMR) projects targeting countries in the Indo-Pacific region. The move is seen as an attempt to combine the respective nuclear power technologies of the three countries to secure an early lead in SMR projects in the Indo-Pacific, where energy demand is high.

Minister of Foreign Affairs Cho Hyun, U.S. Secretary of State Marco Rubio, and Japanese Foreign Minister Motegi Toshimitsu held a South Korea-U.S.-Japan foreign ministers meeting in Ankara, Turkiye, on the 7th (local time) on the sidelines of the North Atlantic Treaty Organization (NATO) summit and signed a memorandum of cooperation for SMR collaboration, the Ministry of Foreign Affairs said on the 8th.

The SMR memorandum of cooperation was concluded with the aim of establishing a trilateral cooperation framework to carry out SMR projects for countries in the Indo-Pacific region. The Ministry of Foreign Affairs stated, “This cooperative framework will reduce project development risk, achieve economies of scale, catalyze private investment, and streamline licensing and permitting procedures,” adding, “the goal is to create an SMR deployment model that optimizes the supply chain.”

According to the Ministry of Foreign Affairs, the memorandum includes support for multiple SMR construction projects through standardized reactor designs and simplified contracting procedures, the formation of consortia among companies from the three countries, project financing and capacity building, and support for technology, fuel, equipment, and services.

Industry observers say that, as South Korea is regarded as having outstanding nuclear power plant construction capabilities among the three, it could take on construction roles together with engineering, procurement, and construction (EPC) firms. The United States may lead foundational technology and design, while Japan may focus on supporting the supply of key materials, components, and equipment, dividing roles accordingly.

The Ministry of Foreign Affairs said, “Coordinated cooperation among the three countries will enable companies from South Korea, the United States, and Japan to offer more competitive options that can meet the growing energy demand of partner countries in the region,” adding, “as new reactor technologies become increasingly commercialized, we will help ensure adherence to the highest standards of nuclear safety, nuclear security, and nonproliferation.”

Inside and outside the Ministry of Foreign Affairs, some view the decision by the three countries to strengthen nuclear power cooperation as “an assessment that South Korea is being recognized as a trusted alliance partner (of the United States and Japan) and for its capabilities in the nuclear field.” There is also an assessment that the three countries have identified concrete cooperative projects at a time when the importance of energy security has increased due to the U.S.-Iran war.

The three foreign ministers also discussed the situation on the Korean Peninsula, including the North Korea issue, at this meeting. The Ministry of Foreign Affairs stated that they agreed to continue efforts to maintain peace and stability on the Korean Peninsula through dialogue and diplomacy while upholding the principle of denuclearization of the Korean Peninsula. While South Korea emphasized the ‘principle of denuclearization of the Korean Peninsula’ in its phrasing on denuclearization, Japan's Ministry of Foreign Affairs used the expression ‘complete denuclearization of North Korea,’ reflecting a difference. The U.S. Department of State did not mention denuclearization and focused only on the signing of the SMR MOC and cooperation in the areas of nuclear safety, nuclear security, and nonproliferation.