Yoon questions Yellen's comment on the IRA

Economy

Published: 26 Oct. 2022, 14:23 Updated: 26 Oct. 2022, 17:04

Yoon questions Yellen's comment on the IRA

President Yoon Suk-yeol answers questions by reportes in entering his office in Yongsan on Wednesday. [JOIN PRESS CORPS]

Janet Yellen's comments on the Inflation Reduction Act (IRA) made Monday are “slightly different” from the U.S. government’s position, according to President Yoon Suk-yeol.“We should wait and see a little longer,” Yoon said on Wednesday.

The U.S. treasury secretary told reporters Monday that the law has to be implemented as it is written.

"The legislation is what it is," Janet Yellen said, Bloomberg reported.

The Korean government has been lobbying heavily to get waivers from the IRA for Korea automakers and battery makers, similar to waivers granted to Korean chipmakers facing restrictions under new U.S. Commerce Department rules.

Hyundai Motor, which broke ground on an EV plant in Georgia on Tuesday, has been hit hard by the law as none of its cars are qualified for the EV tax credit in the United States.

Under the terms of the IRA, buyers of EVs are eligible for a $7,500 tax credit only if the vehicles are assembled in the United States. The batteries in the cars must meet strict content-sourcing requirements, the most onerous being that no Chinese-made components can be used from 2024 and that the vehicles must be free of Chinese critical minerals from 2025.

President Yoon personally raised concerns about the IRA with President Joe Biden during their brief meeting in New York last month and while attending the UN General Assembly.

Yoon’s office has said that Biden sent a letter in which he noted that he is well aware of concerns about the IRA and that he will continue with negotiations that are “open hearted” and “honest.”

The Korean president’s office stressed that the letter was a result of Yoon’s repeated raising the IRA issue with the U.S. president.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]