Diplomats Launch Comprehensive Diplomatic Campaign Targeting US Administration Over Inflation Reduction Act Solutions

Park Jin Asks US Deputy Secretary of State to Provide Solutions Such as Inflation Reduction Act Exemptions and Deferrals
South Korea-US Deputy Foreign Ministers' Meeting Agrees on Close Consultations Between Diplomatic Authorities

[Asia Economy Reporter Yoo In-ho] Our government has launched an all-out diplomatic campaign targeting the U.S. administration regarding the Inflation Reduction Act (IRA) related to Korean-made electric vehicles, based on the strong Korea-U.S. alliance.

[Image source=Yonhap News]

The U.S. administration has expressed concerns about the Inflation Reduction Act (IRA), which excludes Korean-made electric vehicles from subsidy support.

According to diplomatic sources on the 27th, high-ranking diplomatic officials, including Foreign Minister Park Jin, met with Daniel Kritenbrink, U.S. Assistant Secretary of State for East Asian and Pacific Affairs, the previous day to repeatedly convey concerns about the IRA.

During the informal meeting between Minister Park and Assistant Secretary Kritenbrink, Korea’s serious concerns were conveyed in a relatively candid atmosphere.

Minister Park reportedly stated that discriminatory treatment against Korean companies is difficult to accept as it may violate the Korea-U.S. Free Trade Agreement (FTA) and World Trade Organization (WTO) rules, and expressed the opinion that concrete measures should be taken promptly to resolve these concerns.

The Ministry of Foreign Affairs said, “(Minister Park) urged efforts to promptly prepare possible solutions such as exemptions or suspensions of these discriminatory measures.”

Minister Park emphasized this by citing recent large-scale investments by Korean companies in the U.S. that contributed to job creation, and Korea’s active participation in U.S.-led supply chain initiatives such as the Indo-Pacific Economic Framework (IPEF), the Minerals Security Partnership (MSP), and the preliminary meeting of the Quad semiconductor supply chain cooperation (fab4).

In particular, concerns were also conveyed that this legislation runs counter to the close cooperation between the two countries following the Korea-U.S. summit in May and is inconsistent with the spirit of the alliance.

Assistant Secretary Kritenbrink reportedly responded that he clearly recognizes and understands Korea’s concerns.

He emphasized that the IRA is aimed at addressing global issues such as climate change and is not targeted at Korea, and expressed the position that relevant departments of both countries should promptly hold consultations on how to resolve this issue going forward.

Assistant Secretary Kritenbrink listened carefully to Minister Park’s opinions in a cautious atmosphere and reportedly said he would report to senior officials upon returning to his home country.

As Korea and the U.S. strengthen cooperation and communication mechanisms centered on economic security, there is also a sensed atmosphere of concern that the IRA, emerging as a contentious issue, could become a burden on Korea-U.S. relations.

Second Vice Foreign Minister Lee Do-hoon also strongly urged the U.S. to actively support and pay attention to this issue, considering the possibility of violations of international trade norms such as the WTO and FTA, the negative impact on Korean companies investing in the U.S., and concerns about hindering Korea-U.S. supply chain cooperation.

Assistant Secretary Kritenbrink also promised at this meeting to immediately report this to senior officials and closely consult with Korea to find the best solution as an ally.

During consultations with Deputy Assistant Secretary Yeo Seung-bae, there was agreement to hold close consultations between diplomatic authorities on this issue as well.

Next month, Vice Minister Lee plans to visit the U.S. in person to discuss the IRA issue and explain Korea’s position to officials in the U.S. administration and Congress.

This content was produced with the assistance of AI translation services.