Yoon on Yellen's 'According to IRA Law' Statement: "Differs from General US Government Position"

Presidential Office Official: "Yellen is an Administration Official, Saying She Will Follow Congressional Legislation Is a Natural Statement"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] President Yoon Suk-yeol said on the 26th that there is "a difference from the general position of the U.S. government" regarding U.S. Treasury Secretary Janet Yellen's statement that the Inflation Reduction Act (IRA) will be implemented according to the law.

It is interpreted that he expressed continued expectations as the South Korean government is voicing its opinions to both the U.S. government and Congress regarding the IRA implementation decree and the bill amendment.

On the morning of the same day, when a reporter met President Yoon on his way to the Yongsan Presidential Office and asked, "The Korean automobile industry is tense about Secretary Yellen's remarks on the IRA. How does the government plan to respond?" he said this and added, "Please watch closely."

According to Bloomberg News, Secretary Yellen said on the 24th (local time) to reporters, "We have heard many concerns from Korea and Europe regarding the electric vehicle tax credit, and we will definitely take them into consideration," but added, "The law is as it is, and we must implement it as prescribed by law."

She continued, "We are currently in the early stages of codifying the related regulations," and "We will listen to the concerns of Korea and Europe and review what is feasible during the regulation implementation process."

Following these remarks, voices of concern have grown within the Korean automobile industry. Hyundai Motor Group also advanced the groundbreaking of its dedicated electric vehicle plant in Georgia, U.S., originally scheduled for the first half of next year, to respond to the IRA. However, full-scale production is expected to be possible only in the third quarter of 2024, so a grace period of about two years for IRA application is necessary.

On the other hand, the Presidential Office and the government see room for reflecting South Korea's position in the U.S. administration's detailed IRA implementation decree and the congressional bill amendment. A Presidential Office official told Asia Economy in a phone interview, "Secretary Yellen is an administration official, and it is natural for her to say that they will follow the law set by Congress," calling it a principled statement.

The official also explained that officials from the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs are actively participating in the U.S. administration's IRA subordinate regulation drafting and the congressional IRA amendment opinion gathering process, and are actively voicing their opinions.

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