Korea Electric Power Corp (KEP)

[eFinanceMarkets]

South Korea scraps plans for new nuclear power plants

Korea Electric Power (KEP -3.1%) is sharply lower after South Korean Pres. Moon said the country will scrap plans to build new nuclear power plants and halt operation of the country’s oldest reactor, a major shift for a country that generates nearly a third of its energy needs from atomic energy.

South Korea's 25 nuclear reactors ranks as the world's sixth largest fleet, but concerns over nuclear safety have intensified after Japan's Fukushima nuclear disaster in 2011 and a major earthquake in Korea last year.

Kepco will prepare a plan by 2019 to decommission the Kori-1 reactor, a process expected take at least 15 years and cost 643.7B won ($568M), according to the Energy Ministry.