South Korea’s President Yoon Suk-yeol asks US President Joe Biden to resolve concerns over EV subsidy rules

SEOUL: President of Korea Yoon Suk-yeol asked the President of the United States Joe Biden to help address Seoul’s concerns that new US regulations on electric vehicle subsidies will harm the country’s automakers, Yoon’s office said on Thursday.
Seoul opposes the US Inflation Reduction Act (IRA), signed by Biden last month, overshadowed Yoon’s first trip to the United States since taking office in May.
The new law eliminates federal tax credits for electric vehicles (EVs) manufactured outside of North America, meaning companies like Hyundai Motor Co and its subsidiary Kia Corp will no longer be eligible.
Yoon referred concerns to Biden in London, where both leaders attended the British funeral Queen Elizabethand again in New York on Wednesday on the sidelines of UN General Assemblyhis office said.
“President Yoon has requested close cooperation so that the US administration can address our concerns during the implementation of the Inflation Reduction Act,” Yoon’s office said in a statement.
Biden says he “knows” well about south Koreaconcerns and asked for further discussion, it added.
The The White House said the two leaders discussed a range of issues including supply chain resilience, economic and energy security and climate change, but made no mention of electric vehicle credit.
Seoul views the IRA as a betrayal of Biden’s promise to boost economic ties after South Korean companies announced bold investment plans in the United States.
The US Department of Commerce previously hinted at tensions between the two countries after the meeting between the US Secretary of Commerce Gina Raimondo and South Korean Trade Minister Lee Chang-yang in Washington on Wednesday.
The pair “exchanged candidly about US concerns about South Korea’s pending law imposing network usage fees on foreign content providers and South Korea’s concerns regarding regarding the electric vehicle tax credit,” it said.
In South Korea, the legislature promotes the requirement of overseas content providers, including Netflix and Google’s Alphabet to pay the local network fees.
Seoul’s Ministry of Commerce said Raimondo sympathized with Seoul’s concerns about the IRA and vowed to continue consultations.
“Our side clearly expressed concern that the (IRA) is inconsistent with the US supply chain partnership dynamics and will bring negative impacts to future projects,” it said in a statement. .

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