Acting President Choi Sang-mok speaks during a Cabinet meeting at Government Complex Seoul, Tuesday. Joint Press Corps

The Korean government is scrambling to get an exclusion from the U.S.' “sensitive country” list in the energy sector, as the designation not only could weaken bilateral ties in the sector but also showed a lack of diplomatic coordination between the allies.

Acting President Choi Sang-mok on Tuesday urged a coordinated government effort to address the listing by the U.S. Department of Energy (DOE), a designation set to take effect on April 15.

Choi held a meeting with vice ministers from the foreign, industry and science ministries to receive briefings on the latest developments and discuss response measures.

Industry Minister Ahn Duk-geun is expected to visit Washington later this week to meet with U.S. Energy Secretary Chris Wright, where he is anticipated to request Korea's removal from the list.

The Ministry of Foreign Affairs said it is actively consulting with relevant U.S. agencies to ensure that the listing does not affect cooperation in science technology.

These efforts come just days after the DOE confirmed Korea's inclusion in the lowest category of its sensitive and designated countries list — a decision made in early January during the final weeks of the Joe Biden administration. Even though the listing would limit cooperation between the two countries in the energy and science sectors, the Korean government was not aware of the listing until last week, showing a lack of diplomatic coordination.

While the U.S. has not provided further details, Seoul's foreign ministry said Monday that the designation was not due to foreign policy concerns, but rather security-related issues tied to research institutions under the DOE.

Although neither government has specified the exact security concerns, speculation is growing that the decision may be linked to an alleged security breach involving a Korean subcontractor at the Idaho National Laboratory (INL), a DOE-affiliated facility.

Industry Minister Ahn Duk-geun attends a Cabinet meeting at Government Complex Seoul, Tuesday. Joint Press Corps

According to media reports, the South Korean national was fired from his job there after attempting to board a flight to Seoul while in possession of export-controlled nuclear reactor design software, as cited in a DOE inspection report submitted to Congress. The report covered the period from October 2023 to March 2024, though the exact timing of the breach remains unclear.

However, analysts say the designation is unlikely to have been based solely on a single security incident, as such decisions typically involve broader assessments.

"It is hard to understand if a one-off security breach led to the designation. These decisions are usually based on monthslong monitoring of broader trends. I would say it is also relevant to growing calls within South Korea for acquiring nuclear weapons,” said Lee Chun-geun, an honorary fellow at the Korea Institute of Science & Technology Evaluation and Planning.

According to diplomatic sources, there is precedent for Korea's designation as a sensitive country by U.S. energy authorities. The DOE previously placed Korea on the list in 1981 before removing it in 1994 following negotiations between the two governments.

“It is not exactly clear why we were designated back then, nor what led to our removal. But what is clear is that it took more than a decade, which means overturning this decision in just a few weeks will be extremely difficult,” Lee said.

While the initial decision to add Korea to the list was made under the Biden administration, efforts to reverse it must now be negotiated with the Donald Trump administration, which may use it as diplomatic leverage, some analysts say.

“It's unpredictable how the Trump administration will respond to a decision made by its predecessor. It may easily undo the policy or use it as diplomatic leverage in broader bilateral negotiations,” said Park Won-gon, a professor of North Korean studies at Ewha Womans University.

The foreign ministry declined to provide further details on how Korea was added to the list or whether it was related to the INL case. It is a rare development for a U.S. ally to be included, as the list consists primarily of traditional adversaries such as China, Iran and North Korea.

"Our government is closely consulting with the U.S. on this matter. I will not discuss how this case differs from past listings. I am also not in a position to comment on the designation of other countries," ministry spokesperson Lee Jae-woong said during a briefing.

Joseph Yun, acting U.S. ambassador to Korea, speaks during an event in Seoul hosted by the American Chamber of Commerce in Korea, Tuesday. Yonhap

Meanwhile, U.S. Charge d'Affaires to South Korea Joseph Yun, currently serving as acting ambassador, downplayed the significance of Seoul's designation as a sensitive country, saying he was unaware of the situation until a few days ago.

“I'm just sorry that this whole thing got out of control ... as if it is a big deal. It is not a big deal, and I've been trying to find out exactly what it is and why it happened,” he said during an event hosted by the American Chamber of Commerce in Korea.

Yun also suggested that Korea's inclusion on the list may have been due to some incidents involving mishandling of sensitive information at DOE-affiliated laboratories, adding that it does not have broader implications for bilateral cooperation.