South Korea and the United States should strengthen cooperation in nuclear energy trade to counter Russia and China’s dominance of the global market, the Federation of Korean Industries suggested in a report on Wednesday.

The FKI said strengthening the bilateral partnership would promote South Korea's advanced nuclear reactor exports and secure a robust nuclear fuel supply chain for the country. The business agency made the proposal based in a report titled the "Korea-US Nuclear Civilian Cooperation Plan."

"The recent US-Korea summit has opened the door for cooperation. As the US aims to reclaim its position as the next nuclear superpower by focusing on Small Modular Reactors (SMRs), it's crucial that Korea develop an action plan that takes advantage of the alliance,” said head of FKI's economic and industrial division Chu Kwang-ho.

As the US has recognized the market dominance of Russia and China as a national security threat, the nuclear power export competition has evolved into a geopolitical struggle, FKI said.

Russia has emerged as a dominant force in the nuclear market, responsible for 23 of the 34 export reactors under construction across 13 countries, according to the report. Central to Russia's nuclear export success is the state-owned enterprise Rosatom, offering an all-inclusive package for countries seeking new nuclear power plants.

As for China, three state-owned enterprises -- CNNC, CGN and SPIC -- spearhead the nation’s nuclear power export. While it trails behind Russia, China has successfully exported its homegrown nuclear power plant, Hualong One, to Pakistan and Argentina.

To counter the growing dominance of Russia and China, the FKI laid out two strategies for Seoul and Washington.

First, the FKI suggested that South Korea participate in US-led export programs to promote advanced nuclear reactors such as SMRs to third countries.

The second strategy is for the two allies to jointly establish a supply chain for High-Assay Low-Enriched Uranium (HALEU), a crucial fuel for SMRs, to reduce reliance on Russia.

Recently, the US Congress introduced bills to bolster the competitiveness of the nuclear industry and reinforce nuclear export cooperation with its allies. This presents a prime opportunity for the US and Korea to join forces in reclaiming a leadership role in the global nuclear power market, the FKI said.

The FKI also recommends that Korea develop a program like Supply Chain, Engineering, Construction, Operation for Nuclear Development to complement a US-led program which focuses on the export of advanced nuclear reactors such as SMRs.

Furthermore, FKI stresses the importance of jointly establishing a HALEU supply chain. Currently, the US depends on Russia for HALEU, while Korea lacks authorization to produce the necessary concentration of the fuel. Through investments and forging partnerships in constructing HALEU enrichment facilities in the US, Korea can contribute to resolving the HALEU supply issue, the FKI said.