Newsnomics AJAY ANGELINA reporter | South Korean and U.S. government officials had discussions on Seoul's concerns about the impact of Washington's Inflation Reduction Act (IRA) and agreed to continue "constructive" consultations to address the matter.
"Both sides reaffirmed commitment to continue constructive discussions to address the ROK's (Republic of Korea) concerns and feedback regarding the Inflation Reduction Act (IRA)," the document read.
On Monday, Lee Do-Hoon, South Korea's 2nd Vice Foreign Minister met with Jose W. Fernandez, Under Secretary of United State for Economic Growth, Energy and the Environment, in Washington, D.C for the seventh Senior Economic Dialogue (SED) of the allies.
Lee put a light again to brighten Korea's position on the IRA, that was signed into law by U.S. President Joe Biden in August. It calls for up to $7,500 in tax credits to buyers of electric vehicles (EVs) assembled only in North America. Concerns have grown that South Korea's two leading automobile companies Hyundai Motor and Kia could lose ground in the U.S. market, as they assemble their EVs at domestic plants for export there.
White House National Security Advisor Jake Sullivan said, “The United States will find ways to meet its economic interests, as well as those of America's allies, in implementing the new Inflation Reduction Act that currently offers tax benefits only to electric vehicles assembled in North America.”
Such solutions will be presented in "coming days and weeks." Said Sullivan
"We have had extensive consultations with Republic of Korea on the Inflation Reduction Act and, in particular, the relevant provisions related to electric vehicles," the top national security adviser said in a press briefing, referring to Korea by its official name.
