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Politics
21 March 2025

Korea And U.S. Agree To Resolve Sensitive Designation Issues

Ministers from both nations discuss energy cooperation amid concerns over DOE listing

Korean Industry Minister Ahn Duk-geun met with U.S. Secretary of Energy Chris Wright on March 21, 2025, in Washington, D.C., where they agreed to collaborate on resolving the designation of South Korea as a "sensitive" country by the U.S. Department of Energy (DOE). This agreement aims to address concerns that the designation could impose restrictions on scientific and technological cooperation between the two allies.

The meeting took place during Ahn's second trip to the U.S. in less than a month. Ahn addressed the concerns stemming from a classification made by the DOE that placed South Korea in the "lowest" category on its "sensitive and other designated countries list" (SCL). According to reports, this designation, set to take effect on April 15, 2025, is due to technical security issues related to DOE-affiliated research institutions.

During the discussions, Ahn and Wright agreed to work together to resolve the issues associated with the DOE listing promptly. Ahn's ministry explained that this collaboration would not only look at these sensitive designations but also expand bilateral cooperation across the energy sector. Both sides discussed key areas including liquefied natural gas (LNG), power grids, hydrogen, and small modular reactors (SMRs).

Ahn expressed optimism about the visit, stating, "The visit to the U.S. provided an opportunity to confirm both countries' commitment to resolving the sensitive country designation issue and to strengthen the momentum of Korea-U.S. energy cooperation." He emphasized the need for close consultations to explore new opportunities for expanding cooperation projects and bilateral investments, especially in the context of the Trump administration's energy policy.

The designation of South Korea as a sensitive country has raised alarms about potential disruptions in high-tech cooperation, particularly in fields like nuclear energy, artificial intelligence, and quantum science. Under the new classification, South Korea is required to obtain prior permission from the DOE for visits to its facilities and joint research initiatives.

Despite the agreement to expedite resolution efforts, there is uncertainty regarding how long it will take to lift the designation. An unnamed government official expressed, "The U.S. should also go through internal procedures to lift the designation," adding that it is difficult to predict when the sensitive country status might be lifted. Nonetheless, there is a shared commitment to ensure the process advances as rapidly as possible.

Moreover, the collaboration on energy issues aims to regularize policy dialogue and public-private energy forums between the Korean and American governments. By enhancing these channels, both nations seek to bolster their energy sectors and maintain a solid foundation for high-level collaboration going forward.

In summary, the latest meetings between Ahn Duk-geun and Chris Wright reflect a strategic effort to address significant concerns about South Korea's standing in the U.S. security framework, while simultaneously strengthening ties in the energy sector. Both nations are eager to navigate the challenges of the sensitive designation and enhance their joint capabilities in an increasingly competitive global energy market.

As the situation unfolds leading up to the April 15 deadline, stakeholders on both sides are looking forward to meaningful outcomes from these discussions, with hopes that cooperative ventures will pave the way for a deeper alliance between South Korea and the United States in energy and technology.