Korea sends delegation to U.S. over inflation reduction act

Industry

Published: 29 Aug. 2022, 10:16

Korea sends delegation to U.S. over inflation reduction act

Kia's EV6 [KIA]

Korean government officials will embark on a trip to the United States on Monday to deliver concerns over the U.S. Inflation Reduction Act that excludes electric vehicles (EVs) assembled outside North America from tax incentives, the industry ministry said.

Their scheduled visit to Washington came amid mounting concerns over the axed subsidies for eco-friendly cars made in Korea and other non-North American nations under the $430 billion law, signed by U.S. President Joe Biden earlier this month.

Korean carmakers, including Hyundai Motor and Kia, make their flagship models at domestic plants and ship them overseas.

During the three-day stay through Wednesday, the officials from the industry, finance and foreign ministries plan to visit their counterpart departments and the U.S. Congress to explain the stance of the Korean government and the business circle, and to have talks for possible supplementary measures, according to the ministry.

The delegation will also meet Korean carmakers, battery firms and related companies doing business there to discuss responses together and supportive measures, it added.

The law also requires EVs to be equipped with U.S.-made batteries and battery materials, while battery makers here are also heavily dependent on China for key minerals for their manufacturing.

In the pursuit of the U.S.' flexible implementation of the law, the Seoul government has sought active consultations with the U.S., while working to join hands with European exporters and other partner nations for joint responses.

It has also vowed to review whether to bring the case to the World Trade Organization for its possible violation of the most-favored-nation treatment principle.

Trade Minister Ahn Duk-geun plans to meet with U.S. officials for talks on the act during his scheduled trip to Washington next week, his office has said.

Yonhap