March 17, 2025
SEOUL – The South Korean government is scrambling to attempt to reverse the country’s inclusion on the US Energy Department’s “sensitive country” list — a move that could obstruct advanced technology and nuclear energy cooperation between the allies — with the designation set to take effect in mid-April.
Seoul now faces yet another challenge in its alliance with Washington, navigating the issue with limited diplomatic capacity amid continued political upheaval, as it awaits the Constitutional Court’s impeachment ruling for suspended President Yoon Suk Yeol.
The US Department of Energy’s official confirmation on Friday that South Korea has been placed in the “lowest category” on the sensitive country list has rattled Seoul — not only due to concerns over the potential fallout, but also because the South Korean government had been caught off guard by a move more than two months in the making.
The DOE disclosed that South Korea was actually listed in early January under the previous Joe Biden administration, and the restriction has since been inherited by the current Donald Trump administration.
The DOE did not, however, reveal the precise reasons for the designation.
South Korea’s Foreign Ministry, the main channel for negotiations with the US on this matter, responded, “Our government is taking this matter seriously and is closely consulting with relevant US government agencies.”
“We will actively negotiate to prevent any negative impact on energy and science and technology cooperation between Korea and the US,” a Foreign Ministry official said on condition of anonymity on Saturday.
Seoul and Washington have been in consultation since last week over removing Seoul from the list, according to diplomatic sources in Seoul.
Washington’s confirmation has prompted political parties on both sides of the aisle here to raise the alarm over the potential adverse implications for South Korea in advanced technology cooperation, including artificial intelligence and nuclear energy, as well as on the alliance generally.
The People Power Party on Sunday said that the listing, despite it being the lowest category, was deemed a “grave matter as it could affect the trust accumulated in the Korea-US alliance so far.”
“We cannot prejudge the ramifications currently. But starting this year, mutual visits and cooperation in the fields of advanced technology will be first constrained by restrictions such as preapprovals for visits to national laboratories under the auspices of the Energy Department,” a statement issued by the party’s spokesperson Kwon Dong-wook read. “The long-term impact is expected to be even broader and more far-reaching.”
The main opposition Democratic Party of Korea said that the “alliance, which was the foundation of national security and a key pillar of international cooperation in the fields of economy, science and technology, is being shaken,” in a statement issued Sunday by party spokesperson Rep. Hwang Jung-a.
The DOE on Friday clarified that being on the sensitive country list does not prohibit scientific or technical cooperation with the US and does not prohibit Americans or US Energy Department personnel from visiting or doing business with listed countries. However, the DOE explained that visits and cooperation undergo an internal review beforehand, which means a sensitive country faces additional screening.
Seoul’s key concern is that merely being on the list, which the DOE designates for “national security, nuclear nonproliferation or terrorism support reasons,” could set back scientific and technological cooperation. The list of sensitive countries includes China, India, Iran, Israel, North Korea, Pakistan, Russia and others.
The DOE, which is responsible for energy policy, nuclear security and national security programs, operates 17 national laboratories in cutting-edge scientific research such as AI, nuclear energy and quantum technology, making it a key partner for South Korea in such cooperation.
The Democratic Party criticized the fact that the South Korean government “remained unaware of the designation for more than two months,” a sentiment also echoed by the ruling People Power Party.
During a National Assembly briefing on March 11, Foreign Minister Cho Tae-yul said that the Korean government had only realized the designation “just a few days” before Korean daily Hankyoreh on March 10 reported on the matter in an exclusive. Cho also said that the Korean government had not been officially notified of the designation by the US either during its review process or after the designation.
The Democratic Party blamed Yoon and the ruling party, saying that “experts analyze that the reason behind the US designation lies in remarks by Yoon Suk Yeol and People Power Party politicians regarding independent nuclear armament and securing nuclear latency,” in another statement issued Saturday by spokesperson Rep. Kim Sung-hoi.
Dismissing the criticism, the People Power Party on Sunday called for “deploying every diplomatic effort to reverse the designation before it takes effect on April 15,” underscoring an “all-out response” to that end.
The party on Saturday also underscored that “the administrative measure taken without strategic consideration should not create confusion in Korea-US cooperation.”
At a critical juncture for the alliance, US Defense Secretary Pete Hegseth dropped plans to visit South Korea later this month as part of his first Indo-Pacific tour since taking office, according to South Korean government sources. Hegseth is set to visit key US bases in Guam and Hawaii as well as allies such as Japan and the Philippines.
If Hegseth were to make a trip to South Korea, it would mark the first visit at the ministerial level during the second Trump administration.
Hegseth’s cancellation of his trip to South Korea comes amid continued political turmoil here following Yoon’s Dec. 3 botched martial law declaration, which also previously led then-US Defense Secretary Lloyd Austin to scrap his plans to visit South Korea in December last year.