South Korea belatedly scrambles to avoid fallout from inclusion on US 'sensitive country' list

By Im Yoon-seo Posted : March 17, 2025, 17:33 Updated : March 17, 2025, 17:41
 
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Acting President Choi Sang-mok speaks at a meeting at the Government Complex in Seoul on March 17, 2025. Yonhap
SEOUL, March 17 (AJP) - Last week's abrupt revelation of South Korea being classified as a "sensitive country" has sent shockwaves through political circles and government agencies here, with key diplomatic figures and senior officials scrambling to assess its implications and potential fallout.

Such a classification by the U.S. Department of Energy (DOE), which could restrict cooperation in advanced technologies, may reflect a shift in U.S. policy toward South Korea, one of its closest allies in Asia. This development could have far-reaching ramifications not only for bilateral relations but also for regional security.

Regarding this, Acting President Choi Sang-mok on Monday called for efforts to strengthen South Korea's alliance with Washington and instructed government ministries to "clarify our stance to the U.S. and ensure that there are no disruptions in current cooperation, particularly in science and energy."

To resolve the issue, Ahn Duk-geun, the minister of Trade, Industry and Energy, will head to Washington later this week to meet with his U.S. counterpart and request reconsideration.
 
The US and Department of Energy flags are seen outside DOE headquarters in Washington DC on Feb14 2025 AFP-Yonhap
The U.S. national flag is seen alongside the Department of Energy flag in Washington, D.C. on Feb. 14, 2025. AFP-Yonhap
When it was belatedly revealed, many initially thought it was a measure taken shortly after Donald Trump took office. However, it was later confirmed that the country was added to the list in early January during the final days of the Joe Biden administration.

If implemented as planned next month, it could negatively affect the bilateral alliance across various areas, not limited to technological sectors, weakening the strategic partnership between the two countries that has been built over many years.

In particular, with North Korea's nuclear capabilities becoming even stronger to the point where U.S. President Donald Trump recently referred to it as a "nuclear power," possible limited collaborative responses between the U.S. and South Korea could send a wrong signal to North Korea, raising security concerns on the Korean Peninsula.

Despite the DOE's explanation that South Korea is included in the lowest tier of "other designated country" in the list of sensitive countries, there is criticism of the government's failure to proactively assess and address the situation in a timely manner, as it was completely in the dark for a couple of months.

The list includes countries like China, North Korea, Iran, and Russia, which are deemed to pose risks to U.S. national security, nuclear nonproliferation, and economic interests. Specific reasons for South Korea's inclusion remain unclear, baffling many pundits, as it is the only country on the list among its allies.

A DOE spokesman tried to pacify Seoul's concerns, saying "Currently there are no new restrictions on bilateral science and technology cooperation with the [South]." He added, "Inclusion does not necessarily indicate an adversarial relationship with the United States; many designated countries are those we regularly cooperate with on a variety of energy, science, technology, counterterrorism, and nonproliferation issues."

But it is widely speculated that the inclusion could not only complicate bilateral cooperation in advanced technologies such as nuclear energy, artificial intelligence (AI), semiconductors, and biotechnology, but also restrict South Korea's access to cutting-edge technologies, potentially hampering its technological advancement.

South Korea is currently engaged in a wide range of energy-related joint research and other projects with the U.S., but once effective on April 15, these would require prior approval from the DOE.

There is a growing call for the South Korean government to work closely with the U.S. to prevent the list from taking effect, as the inclusion reflects a level of concern and distrust from the U.S. regarding security issues and the potential transfer of sensitive technological information.

But a bumpy road lies ahead as the country faces political uncertainty amid a leadership vacuum following President Yoon Suk Yeol's botched Dec. 3 martial law debacle and his subsequent impeachment trial, with the final verdict still pending.

While some suspect that the U.S. recent move may be linked to calls for Seoul to pursue its own nuclear armament amid North Korea's continuous nuclear threats, the country still does not know exactly what led to its inclusion on the list, while the U.S. may be reassessing its stance on national security and technology sharing with its allies.
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