[Interview] "Designation as a Sensitive Country Involves Not Just Security but Also Risks Like Nuclear Technology Leakage... Korea Keeps Scoring Own Goals"

Interview with U.S. Experts on South Korea's 'Sensitive Country' Designation
Scott Snyder, President of the Korea Economic Institute of America
Troy Stangarone, Director at the Wilson Center
Sensitive Country Designation Not Triggered by a Single Violation
Following the Sumi Terry Case, Gaps Found in South Korea's Intelligence and Security Activities
Trump May Use the Issue as Leverage in Future Trade Negotiations

Amid concerns that South Korea's research institute security issues were the cause behind the U.S. Department of Energy designating South Korea as a 'sensitive country,' some U.S. think tank experts have analyzed that various factors, including the possibility of nuclear and atomic technology leaks, may have influenced this decision. It has also been pointed out that South Korea is scoring an 'own goal' by burdening the Korea-U.S. relationship and South Korea's interests through lax intelligence and security activities toward the U.S., following last year's Sumi Terry incident and this year's sensitive country designation. There is also speculation that the Donald Trump administration might use the issue of lifting the sensitive country status as a bargaining chip in future trade negotiations with South Korea.

On the 18th (local time), Troy Stangarone, director of the Korea Studies and Public Policy Program at the Woodrow Wilson Center, said in an interview with Asia Economy, "While the attempt to export sensitive nuclear software to South Korea appears to be a trigger factor, generally a single violation case alone does not lead to designation as a sensitive country."

He added, "The U.S. Department of Energy has stated that it is currently conducting an investigation," and "until the U.S. government provides a final explanation, it cannot be ruled out that other factors, including nuclear non-proliferation issues, influenced the decision to designate South Korea as a sensitive country."

The Ministry of Foreign Affairs explained that the recent designation of South Korea as a sensitive country by the U.S. was due to research institute security issues. It was also revealed the previous day that an employee of the Idaho National Laboratory (INL), under the U.S. Department of Energy, was caught attempting to export U.S. reactor design software subject to export controls to South Korea. While this incident may have influenced the U.S.'s designation of South Korea as a sensitive country, experts in Washington D.C. believe there are additional factors, including the possibility of other nuclear and atomic technology leaks and U.S. concerns about nuclear non-proliferation.

The designation as a sensitive country is expected to inevitably impose some restrictions on advanced technology cooperation between South Korea and the U.S. The Department of Energy designates countries as sensitive when there are concerns related to national security, nuclear non-proliferation, or terrorism support, requiring special policy considerations. Once designated as a sensitive country, nationals of that country must undergo stricter procedures when conducting joint research at any of the 17 national laboratories under the Department of Energy.

Scott Snyder, president of the Korea Economic Institute of America (KEI), said, "With South Korea designated as a sensitive country, Korean experts will now undergo additional screening before accessing U.S. government facilities." However, he explained, "Existing participants in joint projects or those who have received exemptions will not be subject to additional screening."

Stangarone stated, "In the future, Koreans participating in all advanced technology research under the Department of Energy, including artificial intelligence (AI), energy, and quantum computing, are likely to face stricter monitoring." He added that if the designation was influenced by nuclear-related technology leaks or domestic nuclear armament discussions in South Korea, it would be difficult for South Korea to gain U.S. cooperation regarding nuclear power plant exports, future spent nuclear fuel reprocessing, or uranium enrichment issues.

However, cautious views were also raised regarding the possibility of restricting Korea-U.S. technological cooperation, emphasizing that the intent behind the violation of research institute security regulations must first be confirmed.

Snyder urged restraint in speculation, saying, "If the issue is the INL employee's attempt to export nuclear technology, the specific motive must be identified." He added, "Korea-U.S. cooperation in advanced technology is more related to how the Trump administration plans to proceed with cooperation in this field in the future than to specific past incidents."

Some warn that following last year's Sumi Terry incident and this year's sensitive country designation, gaps have been found in intelligence and security activities involving or related to the South Korean government, increasing wariness toward South Korea within the U.S. The Sumi Terry incident involved Sumi Terry, a senior fellow at the Council on Foreign Relations (CFR) and former CIA employee, who was charged with violating the Foreign Agents Registration Act (FARA) for acting on behalf of the South Korean government without notifying U.S. authorities.

Snyder said, "I am convinced that as these incidents continue to be reported, concerns about South Korea's intelligence activities are growing within the U.S. government," and pointed out, "The frustrating aspect is that these activities are actually scoring own goals that harm South Korea's long-term interests and the Korea-U.S. relationship."

There is also analysis that President Trump, who has threatened tariff bombardments against countries worldwide, might use the issue of removing South Korea from the sensitive country list as leverage in future trade negotiations with the South Korean government. Stangarone said, "Seoul and Washington need to resolve major trade-related issues," adding, "The Trump administration may lift South Korea's sensitive country status but could also use it as leverage in trade negotiations. South Korea should consider what it can offer to be removed from the Trump administration's sensitive country list."

There were also calls not to escalate the fallout from this sensitive country designation on either side of the Korea-U.S. relationship. Currently, domestic political circles are sharply divided, with ruling and opposition parties blaming each other for the sensitive country designation, citing the ruling party's nuclear armament theory and the opposition's anti-American stance as causes.

Snyder warned, "The decision itself has limited consequences and currently appears to be a response to past incidents," but added, "However, if either side exaggerates the issue excessively, it could trigger broader repercussions in bilateral relations."