Foreign Minister Park Jin has met with visiting U.S. legislators on Monday and asked for their cooperation ensuring South Korean automakers do not incur losses from the new Inflation Reduction Act, which does not award subsidies for electric vehicles(EV) assembled outside of North America.
According to Seoul’s foreign ministry on Monday, Minister Park made the request during a luncheon with the U.S. congressional delegation led by Rep. Stephanie Murphy.
In the meeting, Park reportedly said that the discriminative factors of the tax credit clause in the new U.S. law may infringe on the principles of free trade under the World Trade Organization and according to a U.S.-South Korea trade pact.
The minister called for attention from the Congress and cooperation to ensure that the new law will translate to a loss for South Korean companies investing billions of dollars and operating in the U.S., currently helping to create jobs there.
The U.S. lawmakers reportedly said that they are now more aware of Seoul’s concerns about the law, adding they will refer the matter to relevant congressional committees and discuss the matter with their colleagues.
The IRA calls for the expansion of tax subsidies for purchases of EVs assembled only in North America, spawning concerns that it will hurt South Korean carmakers.
Source: KBS World Radio