Doosan Heavy sliding on free-nuclear policy

SEOUL-- Doosan Heavy Industries and Construction Co., South Korea's top power equipment maker, traded at a yearly low on Tuesday on concerns that it would suffer from the new government's policy against nuclear power and thermal power generation.

Doosan Heavy stocks were trading at 17,900 won (US$15.80) on the Seoul bourse as of 10:05 a.m., down 0.56 percent from the previous session's close and nearing their lowest level in one year.

In June, the government said the construction of the two reactors -- Shin Kori No. 5 and Shin Kori No. 6 -- will be suspended for three months so policymakers can decide whether to scrap or move forward with the building project.

The first public survey on the suspension will be made this week.

"Uncertainties will continue, and financial damage is inevitable should the project be scrapped," said Yoo Je-hyun, an analyst at Mirae Asset-Daewoo Securities.

President Moon Jae-in has vowed to stop building nuclear power plants and phase out those that are already in operation.

Last year, around one-third of power in the country was supplied by nuclear power plants. South Korea has 24 nuclear reactors.

The proposal to scrap the reactors' construction sparked heated debates in a country that relies on nuclear reactors for about a third of its electricity. Proponents say the country should phase out nuclear power for safety and environmental reasons, but opponents say it will lead to a shortage in the power supply and a spike in electricity bills.

Source: Yonhap News Agency

You may also like...