The move comes after a government-led energy advisory panel concluded the permanent closure of the unit as appropriate for long-term development of domestic nuclear industry, and decommissioning technology.
The decision entails the company to drop its second extension approval plan, and permanently close the 38-year-old Kori-1 reactor following expiration of operating permit in June 2017.
Korea Energy Economics Institute (KEEI) public think tank president and energy panel member Park Joo-heon said: "The decision was made to develop decommissioning technology and preemptively for us to get ready before the world’s decommissioning markets are open wider."
KHNP has already extended the nuclear unit permit for 10 years.
The Kori No.1 accounts for around 0.5% of total power generation in South Korea.
KHNP spokesperson was quoted by Reuters as saying: "Nothing has been decided until our executive meeting is held sometime next week."
