Korea Nuclear Power Annual Meeting

2018.4.25. Busan

Industry 4.0
and
Nuclear Power

Pusan National University

President, Professor H. H. Chun, PhD., FRINA
Industry 4.0 Fusion, Connection ?

https://www.industry40summit.com/about/what-is-4-0/
 Key Words of New Era Secret of Success ?

Alibaba CEO Jack Ma

LQ
(Love Quotient)
- 사랑 지수-

“If you continue winning while you are respected,

LQ and Innovation is essential”

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 3
 Contents

I. Change of the Age

II. Social Values ​and Corporate

Social Responsibility

III. Industry 4.0 and Energy Industry

IV. Deep Change of University

4
 I. Change of the Age

1 Change of Capitalism Capitalism 4.0

*
Capitalisim 1.0 Capitalisim 2.0 Capitalisim 3.0 Capitalisim 4.0
1776 ~ 1929(Depression) 1930’s ~ 1970’s(Oil Crisis) 1980’s ~ 2008(Finan. Crisis) 2008 ~

Libertarianism Mod. Libertarianism Neoliberalism Symbiotic Ecosystem

“Government and
“Government Not Intervene
“Government always Right” “Market always Right” Market, Organic
Market
Interactions”
Adam Smith , Keynes, Friedman, Kaletsky,
Wealth of Nations (1776) General Theory (1936) Capitalism and Fredom (1962) Capitalism 4.0 (2001)

“Society must pursue mutual growth that protects the market

and the market protects society ”, Professor Joseph Stiglitz, Columbia University

“Need of government and market collaboration in times

of high complexity and uncertainty”, Kaletsky
* Source : Capitalism 4.0 Roadmap (김덕한, 2012)
5
 I. Change of the Age

2 Change of Market Market 3.0

Market 1.0 Market 2.0 Market 3.0

Product weight Consumer weight Value weight

• Value : Function
• Corporate Strategy : Product
Competency
• Value : Function and Emotion
• Corporate Strategy : Corporate
and Product Positioning
• Value : Sustainable Society based on
Emotion and Spirit
• Corporate Strategy : Mission, Vision
and Value of Coporate

“Business Paradigm is in Changing.

Value-driven Market 3.0 era that embraces both customers
and non-customers "- * Film Coatler <Market 3.0>, Time Biz (2010)

* Source : Social innovation Business (전병길, 김은택, 2013)

6
 I. Change of the Age

3 Change of Technology 4th Industry Revolution

1st Ind. Rev. 2nd Ind. Rev. 3rd Ind. Rev. 4th Ind. Rev.

18C 19~20C Early 20C Later 2015~

Steam Engine based Eletricity based Com. and Internet based IoT/AI based
Mechanization Mass Production Knowledge Information Super Network

Human-Human, Human-Things, Things-Things Connectivity High

& Expanding Stakerholders Scope of Corporate

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 7
 I. Change of the Age

4 Change of Society Open Network

Advent of Super Connected Society, Closed Hierarchy to Open Network ….

Centralized Decentralized Distributed

Power Type Nuclear Geo-themal Solar

Economy Control Government Monopoly Shared

Grassroots
Politics Authoritarianism Decentralization
Democracy
Central bank- Bit Coin
Currency Regional Currency
based Currency (Blockchain)
P2P Distributed
System Structure Server Ownership Public Cloud
System
* Source : 2017. 08. 이천포럼. 이재열 교수
8
 I. Change of the Age

5 Change of Stakeholders Increase in Need of CSR

Investor Government Consumer

 Government Intervene CSR
 Investment Increase for High - Propose mandatory disclosure of  Consumer expects Products
CSR to be Ethical
CSR Information(2016)
 Disclosure of corporate social - Fair Trade Product Growth
performance on the stock - EU, Mandatory of CSR Information
(Annual 16% growth)
exchange (Corp. with 500 employers or more )

„Increase in Need of
Expect your product to be Corporates
Corporate Social
an ethical product Responsibility

Distrust of Large Corporates by Public /Complaint Increase

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 9
 목차

I. Change of the Age

II. Social Values ​and Corporate

Social Responsibility

III. Industry 4.0 and Energy Industry

IV. Deep Change of University

10
 II. Social Values and CSR

1 Meaning of Social Value Social Value = Common Value

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 11
 II. Social Values and CSR

2 DBL Strategy of Corporate Competency Factor: „Social Values‟

Biz. Model Building:

1 start from finding Social
Problems
Golden Rule for
Biz Model
Building
Solution of Social
2 Problems:
Technology

* Source : 사회적가치 기반의 BM혁신 방안 (SK경영경제연구소, 2018. 02.)

12
 II. Social Values and CSR

3 Finding of Social Problems UN SDGs

Comprehensive Orientation of UN's SDGs is to raise Social Values:

Corporates should contribute to this End.

13
 Contents

I. Change of the Age

II. Social Values ​and Corporate

Social Responsibility

III. Industry 4.0 and Energy Industry

IV. Deep Change of University

14
 III. Industry 4.0 and Energy

1 Paradigm Change in Energy Electricity Consume Increase

 Paris agreement (Post-2020) and renewables lead to change in

energy mix
 Electricity demand continuously increases in Industry 4.0.

Fatih Birol, IEA secretary general "Last year, electricity-related

investments in the energy sector topped the oil market. Oil companies, such
as Royal Dutch Shell and Total, are building electric vehicle charging stations
in response to the spread of electric vehicles, not gas stations“ (2017.10.17 매일경제)
15
 III. Industry 4.0 and Energy

2 Development of Nuclear Technology From Kori to Baraka

1958 Atomic energy law, Atomic Energy Research Institute

1959 Constructing a research reactor “Triga Mark-II”
…
1978 Commercial operation of Kori nuclear unit 1
…
1998 Construction of Korean Standard Reactor(OPR1000)
2009 Export a research reactor to Jordan
2009 Export 4 APR1400 reactors to UAE
2017 Energy Transition Policy

2018 UAE Baraka unit 1 completion

2019 ??
 III. Industry 4.0 and Energy

3 Nuclear Power in Korea (I) Reliable Electricity Resource

 Nuclear Power Plants in Korea

- 24 units under operation
- 5 units under construction
 Virtually domestic energy
- Fuel cost is less than ~10 %
- Uranium imports account for only
0.5% of the total amount of energy
resource import, but supply about
20 ~ 30% of the electricity in Korea.
 III. Industry 4.0 and Energy

4 Nuclear Power in Korea (II) Nuclear is now Export goods

 Export of 4 APR1400 Units to UAE

- 19B $ construction cost, 110, 000 man-year employment
- The export of 4 APR1400s is equivalent to
. 180 super large tankers
. 1M medium-size passenger cars
- Raise the status of Korea

 World Nuclear Power Reactors

- 450 operable
- 55 under construction
- 158 planned
- ~70 to be constructed
by 2030

UAE Baraka Unit 1 Completion (March 26, 2018)

 III. Industry 4.0 and Energy

5 Public Acceptance After Fukushima Dramatic change!

 III. Industry 4.0 and Energy

6 Energy Transition Policy Gradual phase-out of nuclear

 Changes in the times that emphasize safety,

environment, and public acceptance. "It is safe and eco-friendly,
 18 % nuclear by 2030 but peoples are
misunderstanding” ... This
 No new domestic construction…? is not enough.
 III. Industry 4.0 and Energy

7 Nuclear Industry in Crisis How to keep technology?

 Difficulties in human resource

supply and maintenance
 Supply chain collapse

 Causing maintenance problems in existing

nuclear facilities
 Threatening the safety and reliability of
nuclear power plants
 Decreasing competitiveness of nuclear power

 How to maintain workforce and

supply chain?
 How to strengthen the export
competitiveness?
 III. Industry 4.0 and Energy

8 Re-evaluation of Nuclear Power Facts and challenges

 Energy security
 Environment-friendly
 Economical
 Paris agreement: CO2 reduction - 37% BAU by 2030
 Safety issues (Science and technology vs. fear)
 Public acceptance

2017.2.15. Seoul (SBS)

 III. Industry 4.0 and Energy

9 Lessons from Public Discussion Communication is the answer.

 89-days public discussions on Shin-kori nuclear

unit 5&6 construction
 Science and Technology defeat exaggerated fears

[Oct. 14, 2017, Yonhap News]

 III. Industry 4.0 and Energy

10 Nuclear in Industry 4.0 Make the future new-clear

 Complementary relationship between nuclear and

renewables
- Nuclear power complements the intermittent and low-energy-
density of renewables
 Innovative safety enhancement using Industry 4.0
technology (ICT, Big Data, robot, etc.)
 III. Industry 4.0 and Energy

11 Early Nuclear Power Ship and Ocean Industry

Navy Commercial
Vessel Ship
• Submarine • Cargo-Passenger Ship
• Aircraft Carrier • Bulk Cargo Ship
• Navy Ship • Ore Carrier
• Ice Breaker
 III. Industry 4.0 and Energy

12 Nuclear Power ? Ship and Ocean Industry

Pros Cons

• Covering great distances • High CAPEX

without refueling
• Space & Weight Required
• Low fuel cost for Radiation Protection
• High Power • Potential Environmental
• No CO2 Catastrophe

• No Air Combustion • Ports Facilities to

Dispose Nuclear Waste
• No Massive Fuel Tank & Refuel Uranium
 III. Industry 4.0 and Energy

13 Challenge of Nuclear Power Ship and Ocean Industry

Design & construction technology in limited space and against

ocean environment

Technology of radiation protection · Nuclear disposal · Decommission

High Standard National and International Rule & Regulation for its
Life Cycle (Design, Construction, Operation, Decommission)

Mitigation Plan for Accidents in Ocean Environment

Ports with facilities for handling nuclear waste and refueling ships
with uranium
 III. Industry 4.0 and Energy

14 Future of Nuclear Power Ship and Ocean Industry

Sustainable Offshore Nuclear Power Platform

• Power for Coastal Area, Island, Oil & Gas Offshore Platform
• Seawater Desalination Plant

U.S. Russia China

• Power Plant • Power for Port • Power for Island or
• Merging Tech. of Facility Offshore Rig
Nuclear and Offshore • Two 35MW Nuclear • Seawater Desalination
• Up to 1100MW Reactor • 200MW
 Contents

I. Change of the Age

II. Social Values ​and Corporate

Social Responsibility

III. Industry 4.0 and Energy Industry

IV. Deep Change of University

29
 IV. Deep Change of University

1 Drive of Change Change of University Environment

Limit of Knowledge • Dramatic Change of

Technologies and Uncertainty:
Life
“Shortening of Knowledge
Useful Life”

Evolution of Knowledge
Change of Students
Acquisition
• Many Tools of Knowledge • Emergence of New Generation
Acquisition that builds its own learning
- Flipped Learning / MOOC / world with new learning
E-Learning / U-Tuce etc methods and activities

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 30
 IV. Deep Change of University

2 Direction of University Change 5P of University Change

Purpose
(Mission
consciousness )

Process People
(Professor ,
(Revolution of
Knowledge Student)
Acquisition
Method)
University University Concerns
Social Values beyond
Platform
(Off Campus)
Place
(Korea →
Simple Teaching

Global)

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 31
Human resources required by the new age
IV. Deep Change of University

4 Virtues of Talent in Industry 4.0 IQ/EQ

In the Past, IQ and Also, AQ and Talent that solves the problem of
EQ: Index of Talent RQ becomes value and implements the
Judgement Important machine and the inexplicable
goodness
• IQ • AQ • SQ
(Intelligent Quotient) (Adversity Quotient) (Spiritual Quotient)
- 지성 - 역경 해결 능력 - 영성 지수

• EQ • RQ • LQ
(Emotional Quotient) (Relationship Quotient) (Love Quotient)
- 감성 - 관계 형성 능력 - 사랑 지수

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 32
 IV. Deep Change of University

5 Epilogue

 Find and define social values and problems

 Cultivate creativity to solve problems using advanced
technology
 Build a sustainable society through a global network of
people and knowledge
 Leadership to care for neighbors and serve society

* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 33
 V. Conclusions

Summary

 Time of Industry 4.0

 Great Threat vs. Big Opportunity: Innovation is essential
 New Human Resources Required
 Status of Korean Nuclear
 Competitive Technology but Failure of Social Communications
(Lack of SQ and LQ)
 Contingent Problem of Nuclear Energy
 Use of 4.0 Industry Tech, Creative Destruction and Innovation
 Need Social Communication
 Application of Commercial Ship
 Potential but Not Easy Right Now.
* Source : 새시대가 요구하는 리더들의 사회적 역할과 책임 (최광철, SK 사회공헌위원장, 2018. 04.) 34