"Persuasion for IRA Amendment"... Government and National Assembly to Jointly Visit the U.S. Early Next Month

Andeokgeun, Head of Trade Headquarters, to Visit the US Early Next Month... Contacts with US Congress
Letter Sent to the US in the Name of Minister Lee Chang-yang... Urging IRA Amendment

Ahn Deok-geun, Director-General for Trade Negotiations, Departs to Discuss U.S. Electric Vehicle Subsidy Issues
(Yeongjongdo=Yonhap News) Reporter Shin Hyun-woo = Ahn Deok-geun, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, is responding to reporters' questions as he departs from Terminal 2 of Incheon International Airport on the morning of September 5th to discuss issues related to the Inflation Reduction Act (IRA), which stipulates subsidies only for electric vehicles produced in North America. 2022.9.5
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The government and the National Assembly will visit the United States in early next month to respond to the U.S. Inflation Reduction Act (IRA). The government plans to persuade local lawmakers mainly focusing on the IRA amendment bills proposed in both the U.S. House of Representatives and Senate.

The Ministry of Trade, Industry and Energy announced on the 29th that Ahn Deok-geun, Director General for Trade Negotiations at the Ministry, and members of the National Assembly’s Industry, Trade, Small and Medium Enterprises Committee will visit the U.S. in early next month. The joint visit by Director General Ahn and the committee members is aimed at persuading the U.S. Congress in response to the IRA. A ministry official said, “Amending the IRA is realistically difficult,” but added, “(However) since amendment bills proposing a three-year grace period for the electric vehicle tax credit requirements under the IRA have been introduced in both the House and Senate, we plan to continue engaging with Congress.”

The ministry also plans to contact key officials in the U.S. administration during this visit. The ministry had already submitted the Korean government’s opinion letter regarding the IRA to the U.S. Treasury Department on the 4th of this month. Following the submission, through Korea-U.S. working-level consultations and meetings at the White House, the ministry proposed easing the final assembly requirements of the IRA, specifying battery and mineral/component requirements, and expanding the use of commercial eco-friendly vehicles. Furthermore, as early as this week, the ministry plans to send a letter urging legislative amendments to bipartisan leaders of the U.S. House and Senate, as well as to the relevant committees responsible for the IRA, including the Senate Finance Committee and the House Ways and Means Committee, under the name of Minister Lee Chang-yang.

Key Tax Credit Provisions in the U.S. Inflation Reduction Act (IRA).
[Photo by Ministry of Trade, Industry and Energy]

On the same day, the ministry held a ‘Public-Private Joint Meeting on Responding to the U.S. IRA’ at the Korea Chamber of Commerce and Industry in Seoul, chaired by Minister Lee. The meeting was attended by eight companies including Hyundai Motor Company, LG Energy Solution, Samsung SDI, and POSCO Chemical, as well as two related associations. Minister Lee gathered industry opinions on the IRA and discussed future response measures.

Minister Lee said, “We have continuously presented our opinions to the U.S., achieving some results such as a letter from President Biden and the introduction of amendment bills in both the House and Senate,” and added, “We will also coordinate with related ministries to reform the domestic electric vehicle subsidy system and simultaneously strengthen core competitiveness in electric vehicles and batteries as domestic measures.”

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