Li Administration Shifts Energy Policy Focus to AI and Renewables, Leaves Out Nuclear Funding

Changes in the Li Administration's Energy Policy

The Li administration has shifted its focus significantly in energy policy, concentrating government investment on artificial intelligence (AI) and renewable energy sectors. The recent budget allocations reflect a clear preference for expanding new and renewable energy supply and supporting financial projects, while nuclear power plant funding was notably excluded.

Since the new government took office, renewable energy has gained priority in national energy strategy, marking a departure from previous emphasis.

Budget Allocation Details

On the 19th, the Ministry of Trade, Industry and Energy announced a supplementary budget totaling 495.6 billion won aimed at economic recovery and future-focused industries, including food technology. Within this, 111.8 billion won is dedicated to renewable energy initiatives.

• 11.8 billion won for renewable energy supply projects
• 100 billion won for financial support projects, including loans for solar energy production and facility expansion

Additionally, the R&D budget for next-generation solar cell demonstration projects increased by 1 billion won. Support for Korea Energy Engineering University also rose by 10 billion won compared to the previous year’s budget. However, no funds were allocated for nuclear energy-related projects.

Energy Industry Response and Comparison with Previous Government

The energy sector is closely watching these policy shifts. Compared to the Li administration, the Yoon Suk Yeol government had increased funding for nuclear power while reducing support for renewable energy. Specifically, the renewable energy support budget dropped from 619.6 billion won last year to 571.5 billion won this year, whereas nuclear energy funding rose by 49.7 billion won during the same period.

Focus on AI Industry Development

The Li administration is also accelerating efforts to build an AI industry ecosystem. The supplementary budget includes:

• 12.8 billion won for industrial AI solution demonstration and expansion
• 2.2 billion won for developing AI and robot-based drug self-manufacturing systems

President Lee Jae-myung has committed to investing 100 trillion won in AI and has established a senior secretary for AI future planning within the presidential office. Analysts interpret this as a clear signal that AI development is central to the government’s industrial strategy.

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