South Korea, US launch working-level talks over 'sensitive country' issue

Industry Minister Ahn Duk-geun speaks to reporters at Incheon International Airport, March 20. Yonhap

South Korea and the United States began working-level talks Friday to "swiftly" address the highly charged issue of South Korea's placement on the U.S. Department of Energy's (DOE) "Sensitive and Other Designated Countries List (SCL)," Seoul's industry minister said.

Ahn Duk-geun made the remarks, after he met with Energy Secretary Chris Wright, Thursday, to discuss the matter and other issues amid concerns that the inclusion in the list could affect the two countries' science and technology cooperation.

While in Washington this week, the minister also held talks with Commerce Secretary Howard Lutnick, during which he renewed calls for the United States to give South Korea "favorable treatment" as the Trump administration plans to roll out "reciprocal" tariffs next month to match what its trading partners levy on U.S. exports.

"(I) relayed our concerns (to Wright) over South Korea's inclusion on the DOE's SCL, and the two countries agreed to continue cooperation to swiftly address this issue in accordance with procedures," Ahn told reporters. "As a follow-up, we launched working-level consultations today."

He pointed out the U.S.' explanation that even if South Korea's designation goes into effect April 15, it will not affect ongoing and future bilateral cooperation.

The DOE confirmed last week that the preceding Biden administration added South Korea to the SCL in early January -- a list that includes North Korea, China and Russia. The designated countries are subject to stricter scrutiny when access is requested to DOE research institutions and other facilities for technology cooperation or other purposes.

The designation has drawn keen public attention in Seoul as many Koreans viewed the juxtaposition of their country, a key treaty U.S. ally, alongside North Korea, China and Russia in the SCL as a matter of trust in the long-standing alliance with the U.S.

A senior Seoul official said that the U.S. side has pointed to technology security concerns arising from the evolving technology landscape as a broad reason for the designation rather than offering specific reasons that triggered the designation decision.

South Korea explained its plans for security reinforcements meant to address areas of U.S. concern, according to the official who requested anonymity.

"On this issue, the top officials of the ministry and department in charge have a clear agreement and understanding, and related procedures (to address it) are proceeding," the official said.

During the talks with Lutnick, Ahn reiterated Seoul's hope that South Korean businesses will not face disadvantages as the U.S. is working to introduce reciprocal tariffs.

"While stressing the close connectedness (of the two countries) in efforts to foster an industrial ecosystem between the two countries in the cutting-edge technology sector, I repeated our request for favorable treatment when (the U.S.) plans tariff measures down the road," he said.

The Trump administration plans to introduce country-by-country reciprocal tariffs, April 2. The new tariffs will be customized based on trading partners' tariff- and non-tariff barriers as well as other factors, including exchange rates and what the U.S. views as unfair trade practices.

Meanwhile, Seoul and Washington agreed to seek the establishment of bilateral energy policy dialogue and a public-private energy forum to "accelerate the momentum" for cooperation, as they shared the view that the potential is great for cooperation in areas including liquefied natural gas, power grids, hydrogen energy and small modular reactors, according to Ahn. (Yonhap)