The National Assembly Adopts Resolution to Correct Discrimination Against Korean Electric Vehicles in the US IRA Law

Urging the South Korean and U.S. Governments to Ensure Korean Electric Vehicles Receive Equal Treatment as North American Electric Vehicles

[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] On the 1st, the National Assembly adopted a resolution to rectify discrimination against Korean electric vehicles related to the United States' Inflation Reduction Act (IRA).

On the same day, the National Assembly held a plenary session and adopted the "Resolution Urging Tax Support for Korean Electric Vehicles Based on the Korea-US Free Trade Agreement (FTA)." Out of 261 total members, 254 voted in favor, 1 opposed, and 6 abstained.

This resolution addresses the response of the US and Korean governments to the fact that subsidies can only be provided to pure electric vehicles, hydrogen electric vehicles, and plug-in hybrid vehicles finally assembled in North America due to the Inflation Reduction Act. The resolution stated, "Attention should be paid to the criticism that the principle of national treatment within the Inflation Reduction Act does not conform to the basic principles of the Korea-US FTA and WTO norms," and urged, "The Korean government should actively respond by consulting with the US government to finalize and implement the detailed provisions of the Inflation Reduction Act so that Korean electric vehicles are lawfully included as eligible for tax credits on equal footing with North American electric vehicles, ensuring that our electric vehicles and related companies do not lose competitiveness in the US market."

Previously, the Foreign Affairs and Unification Committee and the Industry, Trade, Energy, Small and Medium Business Committee each proposed resolutions, but after prior consultations between the ruling and opposition parties, the two resolutions were integrated in the form of an amended proposal.

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