Prime Minister Han Holds Roundtable with Korean Entrepreneurs in the US on IRA: "Minimize Negative Effects, Maximize Opportunities"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] Prime Minister Han Duck-soo met with Korean electric vehicle and battery companies operating in the U.S. state of Georgia to discuss responses related to the U.S. Inflation Reduction Act (IRA).

After official visits to Chile, Uruguay, and Argentina, Prime Minister Han held a roundtable meeting on the 15th (local time) in Atlanta, U.S., a stopover on his return trip, inviting representatives from Hyundai Motor Company, SK On, and POSCO.

According to the Prime Minister’s Office, Han stated at the meeting, "The U.S. IRA must be implemented as a measure against inflation caused by the sharp rise in oil prices," adding, "Therefore, the IRA is considered to function as an industrial policy to respond to climate change." He explained that although Hyundai Motor, which produces all its electric vehicles in Korea, is expected to suffer significant damage in the near term due to the IRA’s implementation, in the long term, companies could benefit greatly from investments in eco-friendly technologies.

Cho Hyun-dong, First Vice Minister of Foreign Affairs, told reporters after the roundtable, "While there are challenges posed by the IRA, both Prime Minister Han and the companies agreed that there are also opportunities," adding, "We agreed that the government and companies should work as one team to minimize negative effects and maximize opportunities."

Ahn Sung-il, Director of the New Trade Order Strategy Office at the Ministry of Trade, Industry and Energy, said, "At the meeting, companies especially mentioned that the U.S. Treasury Department is collecting stakeholder opinions to be reflected in the IRA guideline establishment by next month’s 4th, and they are busily considering how to provide the most appropriate feedback by then." He added that Hyundai Motor noted that as a result of the Korean government’s relatively swift response to the IRA, there have been achievements such as proposals for IRA amendments and expressions of cooperation from U.S. government officials, and that they will continue to respond jointly in close consultation with the government.

According to the IRA, to qualify for electric vehicle tax credits, battery materials must be sourced from the U.S. or countries that have free trade agreements (FTA) with the U.S. Because of this, companies must find ways to efficiently import battery materials from countries other than China, which has been a major supplier. In response, Prime Minister Han said, "As we signed a mineral cooperation memorandum of understanding (MOU) with Chile during this tour, we will support the smooth securing of core mineral supply chains for our companies with countries that have FTAs with the U.S." Attendees at the roundtable included Kim Dong-wook, Vice President of Hyundai Motor Company; Kim Eui-sung, Head of Hyundai Motor Alabama Production Corporation; Jung Jun-yong, Head of SK Battery SKB America Corporation; Jung Tak, President of POSCO; Do Han-ui, Head of POSCO America Corporation; and Cho Tae-yong, Ambassador to the U.S.

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