U.S. designates South Korea as sensitive country, raising concerns in nuclear industry

The fact that the United States Department of Energy (DOE) designated South Korea as a "Sensitive Country" is causing a stir. This is a matter that could restrict cooperation between South Korea and the U.S. in the fields of nuclear energy and advanced technology, yet Korean corporations seem to be unaware of the specifics.

According to the energy industry on the 18th, corporations involved in nuclear power-related projects are keenly observing the potential impacts of the designation of South Korea as a Sensitive Country. Companies related to nuclear power research, development, and exports, as well as equipment, include Korea Hydro & Nuclear Power (KHNP), Korea Electric Power Corporation (KEPCO), HD Hyundai, and Doosan Enerbility.

The U.S. DOE includes specific countries on its Sensitive Country List (SCL) for reasons such as national security, nuclear non-proliferation, regional instability, economic security threats, and support for terrorism. It is known that not only the Office of Intelligence and Counterintelligence (OICI) under the Department of Energy but also the Central Intelligence Agency (CIA) and the Ministry of National Defense are involved in managing Sensitive Countries. Earlier this year, South Korea was added, increasing the total number of countries designated as Sensitive by the U.S. Department of Energy to 26.

Starting on the 15th of next month, when the designation as a Sensitive Country becomes effective, South Korea is expected to be affected in the field of nuclear power. Research and development related to technologies such as nuclear fuel enrichment and spent nuclear fuel reprocessing may be hindered. There is a high possibility that the U.S. will intervene by strictly reviewing nuclear power research and technology development. This could also impact the development of small modular reactors (SMR).

Nuclear power plants based on the technology of the American company Westinghouse undergo a process of reporting to the U.S. when exporting overseas. Being designated as a Sensitive Country may complicate this procedure. In the process of exporting to the Czech Republic, Westinghouse had encountered issues by filing a patent infringement lawsuit regarding reactor design technology.

Some foresee no issues with the peaceful use of nuclear power, such as nuclear plant construction and SMRs. Jeong Beom-jin, a professor at Kyunghee University, noted, "Countries intending to produce nuclear weapons are not the only ones designated as Sensitive Countries. This serves as a warning that U.S. information and data may leak. For cooperation in Czech nuclear power plant exports or SMR equipment exports, there should not be any problems in cooperation with the U.S."

The government intends to negotiate with the U.S. before the effectiveness takes effect. Choi Sang-mok, acting president and Minister of Economy and Finance, is scheduled to receive reports on response measures concerning the Sensitive Country issue from Vice Ministers of relevant departments such as the Ministry of Foreign Affairs, the Ministry of Trade, Industry and Energy, and the Ministry of Science and ICT this afternoon.