U.S. Energy Secretary Chris Wright speaks to members of the media following a television interview at the White House in Washington, D.C., Feb. 26. UPI-Yonhap

South Korean nuclear energy experts raised concerns Saturday that Washington's recent designation of Seoul as a "sensitive country" could hamper future bilateral cooperation and disrupt ongoing projects in the field.

According to the U.S. Department of Energy (DOE), South Korea was placed in the "lowest" category of the U.S. Energy Department's "sensitive and other designated countries list (SCL)" in early January. The move was made during the end of the previous Joe Biden administration.

The DOE said the designation does not prohibit scientific or technical cooperation. But South Korean experts said the move could weaken long-standing industry ties between the two allies, potentially dealing a blow to Seoul's nuclear industry.

Yoon Jong-il, a professor of nuclear engineering at the Korea Advanced Institute of Science and Technology (KAIST), warned the designation could present "a major obstacle" to the two countries' nuclear energy cooperation, both at the governmental and private-sector levels.

"South Korea and the U.S. have actively collaborated on international joint research in nuclear technology, particularly in its peaceful applications," Yoon told Yonhap News Agency. "This designation could bring challenges to existing projects and future cooperation."

The professor also pointed out that researchers who previously engaged in academic and industrial exchanges without special approvals could face restrictions in the future, which could discourage interaction at personal and institutional levels.

Yoon also cautioned that private-sector nuclear energy projects may experience setbacks, noting how South Korean firms, such as SK Group and Doosan Enerbility, have invested significantly in the U.S. nuclear sector. "The designation could pose challenges to South Korean companies pursuing investments and business opportunities in the U.S."

Parts of a vacuum vessel sector manufactured by Korea for the international thermonuclear experimental reactor is seen in this photo provided by the Ministry of Science and ICT, Nov. 22, 2024. Yonhap

The professor speculated that the U.S. decision may have been influenced by recent discussions in South Korea's political circles calling for Seoul's nuclear armament.

"The government needs to clearly communicate its stance on nonproliferation to the U.S. and work on diplomatic solutions," he said.

Some experts believe that South Korea's SCL designation is not irreversible, suggesting that diplomatic dialogue and a stabilization of political rhetoric surrounding nuclear armament could lead to the country's removal from the DOE list.

Lee Jae-Gi, professor emeritus of nuclear engineering at Hanyang University, noted that the DOE's designation is distinct from the official classifications of the International Atomic Energy Agency (IAEA), suggesting the situation remains fluid.

He assessed that U.S. President Donald Trump's call for Seoul to increase its share in the countries' bilateral defense cost-sharing deal may have contributed to the debate here over Seoul's nuclear armament, although Seoul's security concerns involving North Korea may have prompted such discussions in the first place.

"The shifting geopolitical landscape has led to increased debate on the issue," he said.

"If South Korea's domestic political situation stabilizes, there is a possibility that the country could be removed from the list."

A senior nuclear energy industry official stressed it was "crucial" for South Korea to uphold transparency in nuclear nonproliferation and export controls.

"The designation is not ideal, but we will explore various solutions to address the challenges ahead," the industry official said, while requesting anonymity.

The official said the DOE designation may create challenges in nuclear energy cooperation between the allies. "We believe that reinforcing our credibility and commitment to nonproliferation will be key to overcoming them," he said.

Experts stressed that proactive diplomacy by South Korea could help prevent potential fallout from the listing.

"The South Korean government needs to communicate clearly with the U.S. to ensure that the designation does not lead to a breakdown in collaboration," Yoon said.

Yoon further emphasized that the potential weakening of ongoing nuclear cooperation would not only be a loss for South Korea but also for the U.S., which has benefited from strong industry and research ties with Seoul. (Yonhap)