Headquarters of Korea Hydro & Nuclear Power / Korea Times file

South Korea's state-run Korea Hydro & Nuclear Power (KHNP) is closely monitoring the impact of Washington's recent designation of South Korea as a "sensitive country," a senior company official said Saturday, while reaffirming its commitment to nonproliferation and ongoing cooperation with American partners.

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 move has raised concerns among nuclear energy experts in South Korea, saying the designation could hamper cooperation and disrupt ongoing projects in nuclear and other fields of advanced technology.

A senior KHNP official acknowledged the designation poses challenges but emphasized the company's focus on transparency and adherence to international nuclear regulations.

"Being designated as a sensitive country is certainly not a favorable situation, and we need to explore various measures to navigate this challenge," the official said. "From the perspective of KHNP and nuclear power plant operators, ensuring transparency in areas, such as nuclear nonproliferation and export controls, is of the utmost importance."

The official noted that South Korea has maintained a strong cooperative relationship with the U.S. in nuclear energy for several decades and remains committed to international nonproliferation efforts.

"We have an agreement with Centrus Energy of the United States to receive uranium enrichment services for 10 years, and we are committed to ensuring the smooth continuation of this partnership. We are determined to conduct our operations in a way that leaves no room for doubt," the official said.

KHNP is also monitoring how the DOE's designation may affect private-sector collaboration in the nuclear industry.

"South Korean and U.S. nuclear energy companies have been working together for a long time, and such collaboration must continue," the official said. "However, this designation could negatively impact future cooperation, so we must proceed with extreme caution and focus on strengthening mutual trust between the two countries."

The official further added KHNP collaborates with multiple American firms across various nuclear technology fields and recently established an international nuclear nonproliferation research center in collaboration with an affiliated graduate school to further reinforce its nonproliferation commitments. (Yonhap)