U.S. Inflation Reduction Act ‘Emergency’… The joint government delegation made an emergency visit to the US today

A joint government delegation is making an emergency visit to the United States to convey the concerns of the Korean government and industry about the implementation of the Inflation Reduction Act (IRA) in the United States.

According to the government on the 29th, the government’s joint delegation consisting of Ahn Seong-il, head of the Ministry of Trade, Industry and Energy’s New Trade Order Strategy Office, Son Woong-gi, head of the current trade affairs team at the Ministry of Strategy and Finance, and Lee Mi-yeon, director of the bilateral economy and foreign affairs bureau of the Ministry of Foreign Affairs, will depart for the United States on the same day.

U.S. President Joe Biden speaks before signing the Inflation Reduction Act in the State Dining Room of the White House on the 16th (local time).

While staying in Washington DC, the United States, from the 29th to the 31st (local time), they visited the Congress and major agencies of the US administration such as the US Trade Representative (USTR), the Treasury, and the Commerce Department. We plan to communicate and discuss supplementary measures.

The IRA, which was recently signed by US President Joe Biden and put into effect, stipulates that only electric vehicles that are finally assembled in North America can receive subsidies.

All electric vehicles currently sold by Hyundai Motor Group, such as the Ioniq 5 and EV6, are produced and exported in Korea, so they are inevitably excluded from this benefit. Unless EVs are produced and sold in the U.S., the competitiveness of EV sales in the U.S., the largest in the global automotive market, will inevitably lag behind for several years.

During the visit to the US, the joint government delegation will hold a meeting with the Korean automobile and battery industries that are in the US to check the response and discuss support measures at the government level.

The joint delegation’s visit to the United States will be conducted as a preliminary consultation prior to the visit of Deok-geun Ahn, head of the Ministry of Trade, Industry and Energy, scheduled for next week.

Director Ahn plans to visit the US next week to attend the Indo-Pacific Economic Framework (IPEF) Ministerial Meeting to continue high-level discussions between the ROK and US authorities regarding IRA.

Separately, it is reported that Minister of Trade, Industry and Energy Lee Chang-yang will meet with US Ambassador to Korea Philip Goldberg at the government complex in Seoul on the 31st to discuss IRA.

On the 26th, Minister of Foreign Affairs Park Jin met with Daniel Crettenbrink, Assistant Secretary of State for East Asia and Pacific Affairs at the Ministry of Foreign Affairs, in Korea at the Ministry of Foreign Affairs and Trade in Korea. It is said that it is difficult to accept, and it is known that he conveyed the opinion that concrete measures should be taken as soon as possible to resolve our concerns.

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