Biden still discriminates against Korean cars

The firearms of U.S. trade protectionism targeting China have hit Korean enterprises. Enhanced economic cooperation could now be both opportunities and damaging for Korean companies. The U.S.-China conflict will worsen as Chinese President Xi Jinping enters his third term. Seoul must come up with strong tactics to defend national interests.

U.S. Treasury Secretary Janet Yellen told reporters that she was well aware of the concerns by Korean and European electric vehicle (EV) and battery makers, but nevertheless put her foot down that the law (Inflation Reduction Act) “is what it is” and should be implemented in the way it is written. Washington has acted as if it would make provisions for Hyundai Motor through an exception clause or grace period. In a letter to President Yoon Suk-yeol, U.S. President Joe Biden vowed to continue discussions in an honest and open manner. Vice President Kamala Harris and Yellen during their separate visits to Korea also promised to find measures to ease Korea’s concerns.

President Yoon expressed disappointment, saying Yellen’s thoughts could differ from the U.S. administration. Biden issued a statement, timed with the groundbreaking ceremony for the $5.5 billion construction of Hyundai Motor Group’s EV and battery manufacturing site in Georgia on Tuesday after taking credit for the advance in shoveling. “This plant was announced during my trip to Korea in May, and I am excited the groundbreaking is happening months ahead of schedule,” said Biden. Korean carmakers are being disadvantaged in sales in the U.S. despite building a local factory that can make thousands of jobs and tax revenue for the U.S.

Hyundai Motor aims to activate the factory from the first half of 2025, rolling out 300,000 EVs of Hyundai Motor, Kia, and Genesis. It is spending $5.5 billion for the construction and 8,100 local hires, paying them an average $58,000 annual salary. That much of investment and jobs have been taken away from Korea. The U.S. has intercepted a Taiwanese chipmaker originally heading to South Korea for a $5-billion investment.

The U.S. which proposed cooperation and consortium with Korea on nuclear technology exports has also betrayed Korea. Westinghouse has filed a suit against the Korea Hydro & Nuclear Power Co. and the Korea Electric Power Corp. in a U.S. court, accusing them of infringing on the U.S. company’s original reactor design and technology.

Such a move goes against a Korea-U.S. summit agreement on cooperating to jointly export reactor technology to a third country.

Korea must be cool-headed about the cold international reality. Korea’s choices are limited. For now, the government must use all possible diplomatic skills.