SK, HD Hyundai Discuss Cooperation in SMR Sector with TerraPower

Strategic Insights -

Bill Gates, co-founder of Microsoft, has concluded his first visit to Korea in three years, which included meetings with business leaders. Before departing, he met with Samsung Electronics' Executive Chairman Lee Jae-yong to discuss global social contribution, and with SK Group Chairman Chey Tae-won, who hosted a dinner at the conglomerate's headquarters in Seoul. The dinner focused on strategic cooperation for the development and commercialization of small modular reactor (SMR) technologies owned by TerraPower, a U.S. company founded by Gates in 2008. SK is TerraPower's second-largest shareholder, having invested $250 million in 2022. Gates and Chey emphasized the importance of Korea and SK playing key roles in commercializing TerraPower's SMRs, citing their safety, efficiency, and eco-friendliness. The meeting also touched on enhancing collaboration to ensure vaccine access for low-income countries and government support for the SMR industry.

Key Takeaways:

  • SK Group Chairman Chey Tae-won met Bill Gates at a dinner hosted at the conglomerate's headquarters in Seoul, discussing cooperation in developing and commercializing SMR technologies owned by TerraPower.
  • SK is TerraPower's second-largest shareholder, having invested $250 million in 2022, with Gates chairing TerraPower's board.
  • Gates emphasized the need for the Korean government to establish regulatory frameworks and supply chains for next-generation SMRs, expecting SK and TerraPower to lead the global market.
  • Senior executives from SK Group met Gates again at Conrad Seoul to continue discussions on SMRs, focusing on investments by SK and TerraPower in the SMR sector and progress in developing commercial reactors in partnership with Korea Hydro and Nuclear Power.
  • HD Hyundai Executive Vice Chairman and CEO Chung Ki-sun met Gates to review the commercialization of Natrium reactors, for which HD Hyundai and TerraPower agreed to pursue partnership last March.
  • The Natrium reactor is a fourth-generation sodium-cooled fast reactor developed by TerraPower, which produces electricity by cooling the heat generated from fast neutron fission with liquid sodium.

Statistics:

  • TerraPower was founded in 2008 by Bill Gates.
  • SK invested $250 million in TerraPower in 2022, making it the company's second-largest shareholder.
  • The Natrium reactor produces 40% less nuclear waste compared to conventional reactors.

Sources:

  • SK Group statement on the meeting between Chey Tae-won and Bill Gates.
  • The Korea Times: "Bill Gates discusses TerraPower's small modular reactor with Korean business leaders."
  • Bloomberg: "Bill Gates to Meet with Korean Business Leaders as TerraPower Pursues SMR Push."