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| The ‘Sensitive Foreign Nations Control’ of the U.S. Department of Energy (DOE) obtained exclusively by AsiaToday |
AsiaToday reporter Goo Pil-hyun
The U.S. Department of Energy (DOE)’s “Sensitive Foreign Nations Control” include strict restrictions on access to advanced industrial facilities in the U.S. for South Korean companies and researchers operating in the U.S. An analysis of the broadly defined DOE control guidelines include the fundamental blocking of collaboration in advanced U.S. technology industries, such as artificial intelligence (AI) and system development software, significant setbacks for South Korean defense companies entering the U.S. market, and restricting access to advanced research facilities in the U.S. for South Korean graduate students in science and engineering fields.
As a result, South Korean tech giants like Samsung Electronics, Hyundai Motor Group, LG Group, SK Group, and Naver may face severe limitations in collaborating with U.S. high-tech companies on R&D. Recently successful South Korean defense companies, such as Hanwha Group, may also encounter practical difficulties in M&As with U.S. defense companies. If DOE regulations are implemented, even maintaining existing contracts could become challenging. Additionally, South Korean graduate students in science and engineering may lose access to advanced research facilities in the U.S. Similar restrictions already apply to students from countries classified as terrorist states, such as China, North Korea, and Iran, and these controls were further tightened under the Trump administration.
If the DOE officially includes South Korea on the sensitive country list starting April 15, South Korea’s entry into the U.S. market in key advanced technology sectors such as AI, system development S/W, and SMR, which require collaboration with the U.S., is expected to face severe restrictions. The impact is anticipated to be particularly significant for South Korean defense companies that have recently begun expanding into the U.S. market.
According to the South Korean Ministry of Foreign Affairs, the DOE’s inclusion of South Korea at the lowest level of the sensitive country list is understood to be due to security concerns related to DOE-affiliated research facilities, not diplomatic issues. The ministry said that the U.S. has confirmed that inclusion on the list will not significantly affect joint research or technological cooperation between South Korea and the U.S. The South Korean government is actively consulting with U.S. government agencies to prevent negative impacts on scientific, technological, and energy cooperation and is continuing efforts to resolve the issue. Besides, there is a precedent where South Korea was previously included on the DOE sensitive country list but was later removed through consultations with the U.S.
However, Washington-based experts view the DOE’s “Sensitive Country” control regulations as more than just DOE-IN (restricted access to secure areas). An analysis of the DOE’s control guidelines suggests that the detailed controls on nationals from sensitive countries include Part 810 (export controls and technological cooperation) and Clause I.92, “Sensitive Foreign Nations Controls,” indicating a broad scope of restrictions. The U.S. government has not yet officially confirmed whether the measures are limited to DOE-IN or include broader export controls and technological cooperation restrictions.
Under the Trump administration, which prioritizes U.S. national interests, and with the Republican Party controlling both the Senate and the House, the U.S. is expected to gain a significant “negotiation advantage” in future discussions with South Korea on defense cost-sharing, semiconductor and shipbuilding investments, and other issues. It is crucial for the South Korean government, industry, and political circles to prepare a comprehensive response before the DOE’s official designation of South Korea as a “sensitive country” on April 15.
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