Trade Minister heads to the U.S. to lobby for IRA changes

Trade Minister Ahn Duk-geun leaves for the United States on Sunday. [NEWS1]

Korean Trade Minister Ahn Duk-geun will visit the United States for talks on the Inflation Reduction Act (IRA), which limits subsidies to electric vehicles manufactured in the United States, the ministry said Sunday.

Ahn is set to hold meetings with U.S. Trade Representative Katherine Tai, John Podesta, the senior adviser to the U.S. president for clean energy innovation and implementation, as well as U.S. lawmakers during a five-day visit that begins Monday, according to the Ministry of Trade, Industry and Energy.

Ahn's visit came just days after Korea sent its second written opinion to Washington on tax benefits for clean hydrogen and fuel production and commercial eco-friendly cars over the weekend.

Korea provided its first comments on electric vehicles (EVs) and related sectors last month.

The IRA, signed by U.S. President Joe Biden in August, gives up to $7,500 in tax credits to buyers of electric vehicles assembled in North America.

The act has sparked concerns that Hyundai Motor and Kia could lose ground in the U.S. market, as they produce EVs at domestic plants for export to the United States, and Korea has strongly voiced the need to create exceptions for Korean-made EVs.

On Thursday, U.S. President Joe Biden acknowledged that the law may have "glitches" during a joint press conference with French President Emmanuel Macron, according to foreign media reports.

Lee Jae-myung, the head of the main opposition Democratic Party, said he has sent letters to Korean Americans in the U.S. Congress, asking for their help to revise the IRA.

In the U.S. midterm elections last month, four Korean Americans — Andy Kim, Young Kim, Michelle Steel and Marilyn Strickland — were elected to the U.S. House of Representatives.

"Roles of Korean American lawmakers, who have contributed to the Seoul-Washington relations, became more important than ever," Lee wrote on Facebook. "In the letter, I explained to them that concerns over the IRA should be resolved in a reasonable way."

Yonhap