Electrical Power Systems
Republic of Korea
Overview
2004 2005 2006 (estimated)
Total Market Size 6,320 6,476 6,500
Total Local Production 4,250 4,400 4,500
Total Exports 2,350 2,787 2,800
Total Imports 4,420 4,863 4,800
(Unit: USD million)
[Source: Korea Electrical Manufacturers Association (KOEMA), Korea International Trade Association (KITA)]
[ USD1= 1,200 Won (2004), 1,100 Won (2005), 950 Won (2006)]
Korea’s ambitious energy program will provide great opportunities for electrical power systems manufacturers over the next few years. The U.S. continues to be the leading import supplier of major equipment such as turbines, generators, and nuclear reactors. However, future sales could be influenced by European and Japanese competitors who are becoming increasingly significant in the market. The U.S. import market share will continue to increase because Korea plans to make major purchases of nuclear power generation equipment, most of which will be sourced from the U.S.
To meet future electricity demand, the government and the private sector plan to invest US$34.4 billion to increase the country’s power generation capacity to 94,278 MW. The plan includes building 89 power plants, including those currently under construction with a combined capacity of 37,730 MW. These plants are targeted for completion by the year 2020. The government will invest $18.3 billion for the construction of nuclear power plants. These nuclear plants will have a combined capacity of 9,600 MW, and they are also targeted for completion by 2020. During the 14-year period covered by the most recent plan, Korea will build eight nuclear power plants (of which four will be 1,400 MW Advanced Power Reactors), 15 coal-fired power plants, 21 oil-fired power plants, 19 Liquefied Natural Gas (LNG) power plants, eight of hydroelectric power plants, and 18 co-generation power plants, including power plants using alternative energy. Considering the number of power plants to be constructed, Korea has one of the most rapidly growing power generation markets in the world.
It is expected that Korea will heavily rely on imported electrical power systems as it rapidly expands its power generation capacity. U.S. electrical power systems are well known and respected in Korea, and U.S. firms have historically fared well in competition with other foreign suppliers.
Best Products/Services
- Nuclear Power Generation Installation
- Thermal Power Generation Installation
Opportunities
Incheon Combined Cycle Plant Unit 2: Korea Midland Power (KOMIPO) plans to construct a 500 MW combined cycle power plant by 2009.
Yongwol Combined Cycle Plant Unit 1 and 2: Korea Southern Power (KOSPO) plans to construct two 450 MW plants by 2010.
Resources
Trade Show
Seoul International Electric Fair (SIEF) 2007
Key Contacts
Ministry of Commerce, Industry and Energy (MOCIE)
Korea Electric Power Corporation (KEPCO)
Local Contact
(Mr.) Yong Tak Lee
Senior Commercial Specialist
Commercial Service Korea
U.S. Embassy
32 Sejong-ro Jongro-gu
Seoul 110-710 Korea
Tel: 82-2-397-4509
Fax: 82-2-739-1628
E-mail: Yong.Tak.Lee@mail.doc.gov
Website: www.buyusa.gov/korea