Hyundai Motor Group Submits IRA Opinion Letter to the US: "Grace Period Should Be Allowed"

"Violates Both the Content and Spirit of the Korea-US FTA"

[Asia Economy Reporter Kiho Sung] Hyundai Motor Group announced that it plans to submit a statement of opinion to the U.S. Department of the Treasury on the 4th local time regarding the U.S. Inflation Reduction Act (IRA). Earlier, the U.S. Department of the Treasury issued a statement on the 5th of last month to establish detailed regulations for the Inflation Reduction Act and announced that it would begin a public consultation process with stakeholders until this day.

In its statement, Hyundai Motor Group emphasized that "providing tax credits only for electric vehicles made in North America and not granting tax benefits to electric vehicles assembled in Korea, a country that has an FTA with the U.S., violates both the content and spirit of the Korea-U.S. FTA" in relation to the 'Clean Vehicle Tax Credit.'

It further proposed that "electric vehicles manufactured by corporations that made binding commitments to build electric vehicle plants in the U.S. before the law's enactment should be considered as meeting the North American assembly requirement or be granted a grace period."

Hyundai Motor Group also plans to submit opinions regarding the provisions in the Inflation Reduction Act that provide tax credits for establishing new electric vehicle plants and selling battery components.

Hyundai Motor Group intends to request the U.S. Department of the Treasury to specify the definitions and requirements of the terms stated in the currently disclosed legal provisions and to establish clearer detailed standards so that automobile companies can receive the incentive benefits included in the Inflation Reduction Act.

A Hyundai Motor Group official said, "Receiving the various incentive benefits stipulated in the law can be utilized to improve the profitability of local businesses in the U.S. and strengthen local marketing capabilities."

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