Government Delegations from Ministry of Land, Industry, and Foreign Affairs Visit US to Discuss Electric Vehicle Subsidy Program

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] Amid strong aftershocks surrounding the U.S. Inflation Reduction Act (IRA), which excluded Korean electric vehicles from subsidy support, a South Korean government delegation has departed for the United States.

According to the Ministry of Economy and Finance on the 29th, the government delegation, including Ahn Seong-il, Director General of the New Trade Order Strategy Office at the Ministry of Trade, Industry and Energy, Lee Mi-yeon, Director General of the Bilateral Economic Diplomacy Bureau at the Ministry of Foreign Affairs, and Son Woong-gi, Head of the Trade Issues Task Force at the Ministry of Economy and Finance, will visit Washington D.C. from today until the 31st. They will meet with key figures from the U.S. administration and Congress to discuss opinions on the electric vehicle subsidy system under the Inflation Reduction Act signed by U.S. President Joe Biden on the 16th.

The government delegation plans to visit major U.S. administrative agencies such as the U.S. Trade Representative (USTR), the Treasury Department, and the Department of Commerce, as well as Congress, to convey South Korea’s concerns regarding the revised electric vehicle subsidy system, the industry’s stance, and domestic public opinion, and to discuss future response measures.

Additionally, the delegation will hold meetings with Korean automobile and battery industries operating in the U.S. to review the current status of industry responses and discuss government-level support measures.

This delegation visit is a preliminary consultation ahead of Ahn Deok-geun, Head of the Trade Negotiations Office, attending the Indo-Pacific Economic Framework (IPEF) ministerial meeting in the U.S. planned for next week. Following Ahn’s visit to the U.S., South Korea and the U.S. plan to elevate consultations on the Inflation Reduction Act to a high-level dialogue.

Last week, senior diplomatic officials also repeatedly conveyed concerns about the Inflation Reduction Act during meetings with Daniel Kritenbrink, U.S. Assistant Secretary of State for East Asian and Pacific Affairs, who was visiting South Korea. Notably, during an informal meeting between Foreign Minister Park Jin and Assistant Secretary Kritenbrink, South Korea’s serious concerns were reportedly expressed in a relatively candid atmosphere. Minister Park reportedly stated, “Discriminatory treatment of 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 emphasized the need for prompt and concrete measures. Vice Foreign Minister Lee Do-hoon also strongly urged the U.S. to actively support and pay attention to this issue, considering potential violations of international trade norms such as the WTO and FTA, negative impacts on Korean companies investing in the U.S., and concerns about hindering Korea-U.S. supply chain cooperation, according to the Ministry of Foreign Affairs.

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