Clean Energy Market Opening with US IRA... "Korea Must Seek Utilization Opportunities"

KOTRA Holds Public-Private Joint 'US IRA Major Incentives Utilization Briefing'

KOTRA Headquarters View / Provided by KOTRA

[Asia Economy Reporter Kim Pyeonghwa] The Korea Trade-Investment Promotion Agency (KOTRA), together with the Ministry of Trade, Industry and Energy and the Korea International Trade Association, held a seminar on the utilization of major incentives under the U.S. Inflation Reduction Act (IRA) at the Seoul Trade Center on the 19th.

This seminar was held as a public-private joint event. Speakers included officials from research institutions such as the Korea Institute for Industrial Economics & Trade and the Korea Institute for International Economic Policy. Over 60 domestic companies of interest also participated, showing recent interest in U.S. IRA-related topics such as electric vehicle tax credits.

Jung Daejin, Deputy Minister for Trade at the Ministry of Trade, Industry and Energy, emphasized in his opening remarks, “The IRA bill includes various investment promotion measures under the purpose of reducing inflation in the U.S.,” and added, “Companies entering the U.S. market should make the most of these incentives.”

Cho Sujeong, Director General of Trade Policy at the Ministry of Trade, Industry and Energy, explained the details of the IRA, stating “The U.S. IRA will secure a total revenue of $737 billion over the next 10 years, of which $437 billion will be invested in green energy and healthcare.” She continued, “Since the invested funds are mainly used to strengthen U.S. industrial competitiveness in areas such as batteries and critical mineral supply chains, there will be many opportunities for our companies to utilize these incentives in the clean energy and eco-friendly automobile sectors.”

Heo Nani, Research Fellow at the International Trade Institute of the law firm Kwangjang, forecasted that the clean energy sector could have particularly high utilization value. Heo said, "The scope of eligible items is broad, and unless there are special conditions, overlapping or cumulative application is also possible,” adding, “Since various supports such as tax credits, general subsidies, loans, and loan guarantees will be provided, it is important to have an accurate understanding.”

Jo Eun-gyo, Associate Research Fellow at the Korea Institute for Industrial Economics & Trade, explained, “As the U.S. production capacity expands with advanced supply chains secured by the IRA, it can benefit our companies with manufacturing competitiveness in both the short and long term.” She added, "In particular, batteries present an opportunity to expand into not only cell manufacturing but also materials and recycling markets.” She further expressed expectations, saying, “In the solar power sector, although there was technological competitiveness compared to China, it was difficult to secure price competitiveness, but market opportunities can expand in modules and materials.”

The organizers, including KOTRA, plan to continue holding such events in the future. A KOTRA official stated, "We will discover, inform, and support factors that expand opportunities for our companies in the U.S. market included in the IRA.”

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