November 29, 2024

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South Korea’s Industry Minister Lee Chang-yang (Yonhap)

SEJONG -- South Korea’s Industry Minister Lee Chang-yang called for the US to take a cooperative stance on resolving the backlash from the local automobiles industry over the US Inflation Reduction Act, which is targeted to scale back subsidies to electric vehicles not assembled on American soil.

Lee delivered the nation’s position during his meeting with US Ambassador to Korea Philip Goldberg in Seoul on Wednesday. He said worries among local carmakers as well as the Korean government reached a “critical” level over a provision in the recently passed bill.

He said that the provision on tax benefits on electric vehicles in the anti-inflation law discriminates against vehicles assembled in the US and electrified cars shipped from other countries, adding the provision could go against the rules on international commerce.

These kind of discriminative measures -- despite bilateral relations in economic collaboration having expanded and Korean industries’ huge investments in the US -- are likely to bring negative effects, he said.

He said that “both sides will be able to settle down this conflict through profound dialogues,” calling on the US to also actively engage toward dialogue.

Minister Lee said he would visit Washington in September to discuss the matter with government officials and members of the US Congress.

A Korean delegation has been in the US since early this week over the issue, and Trade Minister Ahn Duk-geun is scheduled to meet with American officials in early September.

Earlier this month, the Industry Ministry said it “predicts that EVs shipped to the US from Korea, Japan, Germany and Sweden will be excluded from the list of subsidy targets, as the US specified that it would apply the subsidy requirement of EVs, finally assembled in the US, starting from later this year.”

By Kim Yon-se (kys@heraldcorp.com)