South Korea’s national security adviser said Thursday that the U.S. will reduce the impact of new rules on subsidizing electric vehicles, following concerns it could hurt South Korean automakers, according to Yonhap news agency. He promised to look into it, he said.
After meeting with US National Security Advisor Jake Sullivan in Hawaii, Kim Sung-Han decided to hold tripartite talks with Japan primarily to coordinate Indo-Pacific policy in light of tensions between China and Taiwan. commented after gathering for
Concerns are mounting in South Korea over the Inflation Relief Act (IRA) signed into law by US President Joe Biden last month.
Electric car subsidies take cash from ordinary Americans and benefit the rich
Actions under the new law include ending subsidies for EVs made outside of North America, which could affect companies such as Hyundai and its affiliate Kia Motors.
Kim said he had raised the issue at a bilateral meeting with Sullivan, who had promised to investigate the law’s implications at the National Security Council, Yonhap said.
Kim told reporters, “I said that the IRA is likely to bring more positives than negatives to South Korea, but how the electric car subsidy issue will develop in the future and what impact it will have. I would like to take a closer look at it,” he said.
South Korea’s Congress passed a resolution on Thursday expressing concern over a new rule that scrapped the federal tax credit that South Korean automakers’ EVs were previously eligible for in the United States.
The resolution called on the South Korean government to take action, saying the law was discriminatory.
The Inflation Control Act will accelerate inflation, stifle Americans, make them sick and poor
South Korea’s vice foreign minister, Lee Do-hoon, said Tuesday that the South Korean government has asked Washington to postpone the new rule until Hyundai completes construction of its Georgia plant in 2025.