The USA defines South Korea as a “sensitive country”, placing controls on trade, especially nuclear trade
The United States has designated South Korea as a nuclear “sensitive country,” a change in status that, while not precluding bilateral cooperation, raises significant concerns for the future of collaboration between the two allies and for South Korea's nuclear industry.
This decision, made by the US Department of Energy (DOE ) in early January, towards the end of the Biden administration, placed South Korea in the “lowest” category of the DOE's “Sensitive and Other Designated Countries List (SCL)”.
The effects of this change in status on South Korea could be considerable . South Korean nuclear industry experts have expressed concerns that this designation could hinder future bilateral cooperation and disrupt ongoing projects. Yun Jong-il, professor of nuclear engineering at the Korea Advanced Institute of Science and Technology (KAIST), warned that the designation could represent "a major obstacle" to nuclear energy cooperation between the two countries, both at the government and private sector levels.
In particular, researchers who previously participated in academic and industrial exchanges without particular permissions may face restrictions in the future , which could discourage interaction on a personal and institutional level. Additionally, private sector projects may face delays, considering significant investments by South Korean companies such as SK Group and Doosan Enerbility in the US nuclear sector. The designation could therefore pose challenges to South Korean companies seeking investment and business opportunities in the United States.
South Korea's WolsongL nuclear power plant
Why this change in status?
The reasons behind this designation appear to be multiple. On the one hand, as suggested by South Korean experts, they may have been influenced by recent discussions within South Korean political circles that raised the possibility of Seoul's nuclear rearmament. We remember the complex story of the impeachment of President Yoon Suk Yeo l.
This hypothesis was further supported by the unstable geopolitical environment and growing threats from North Korea. On the other hand, the designation reflects a general U.S. wariness of nuclear proliferation and increased focus on countries with advanced civilian nuclear programs, such as South Korea.
Although the DOE says the designation does not prohibit scientific or technical cooperation, South Korean experts fear it could weaken long-standing industrial ties between the two allies, potentially dealing a blow to Seoul's nuclear industry. The need for preventive internal reviews for visits and cooperation could slow down and complicate decision-making processes and the implementation of joint projects.
Fortunately, some experts believe that South Korea's designation in the SCL is not irreversible. They suggest that active diplomatic dialogue and a stabilization of political rhetoric regarding nuclear rearmament could lead to the country's removal from the DOE list. Lee Jae-gi, professor emeritus of nuclear engineering at Hanyang University, pointed out that the DOE designation is distinct from official International Atomic Energy Agency (IAEA) classifications, suggesting that the situation remains fluid.
A senior nuclear energy industry official has stressed that it is "crucial" for South Korea to maintain transparency in nuclear nonproliferation and export controls. He acknowledged that the designation is not ideal, but expressed willingness to explore various solutions to address future challenges, stressing that strengthening credibility and commitment to non-proliferation will be key to overcoming them.
Korea Hydro & Nuclear Power Co. ( KHNP ), a South Korean state-owned nuclear power company, also said it was closely monitoring the impact of the DOE decision, reiterating its commitment to non-proliferation and continued cooperation with American partners.
In addition to nuclear energy, other forms of cooperation between the two countries in advanced technologies could also slow down. The Korea Institute of Science and Technology (KIST), for example, has collaborated with Lawrence Livermore National Laboratory since 2019 and is engaged in research on next-generation secondary batteries in collaboration with Argonne National Laboratory and Brookhaven National Laboratory.
South Korea will now need to undertake careful diplomatic action to clearly communicate its position on non-proliferation and work towards stabilizing the domestic political context, in order to avoid potential negative fallout and possibly obtain removal from the DOE list. The potential curtailment of ongoing nuclear cooperation would not only represent a loss for South Korea, but also for the United States, which has benefited from strong industrial and research ties with Seoul.
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The article The USA defines South Korea as a "sensitive country", placing controls on trade, especially nuclear, comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-usa-definiscono-paese-sensibili-la-corea-del-sud-mettendo-controlli-sullinterscambio-soprattutto-nucleare/ on Sun, 16 Mar 2025 11:00:02 +0000.