[Special Stock] Hyundai Motor and Kia Hit 52-Week Lows Amid Concerns Over US IRA Implementation

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Hyundai Motor and Kia hit 52-week lows amid uncertainty that amendments to the U.S. Inflation Reduction Act (IRA) may become difficult.

At 9:52 a.m. on the 20th, Hyundai Motor's stock price stood at 155,000 won, down 2.52% from the previous trading day. The company's stock price fell to 154,500 won, marking a new 52-week low following the previous day. At the same time, Kia's stock price was 61,000 won, down 2.24% from the previous trading day. Kia also set a new low by falling below 61,800 won (the low on the 14th).

The decline in stock prices is driven by concerns that earnings may decrease due to the implementation of the U.S. IRA. According to the IRA, starting January next year, the U.S. government plans to provide tax credit benefits of up to $7,500 for new electric vehicles and up to $4,000 for used electric vehicles purchased in the U.S. that are produced and assembled domestically.

If the IRA is enforced as is, domestic manufacturers like Hyundai Motor and Kia will not be eligible for these subsidy benefits. In response, the Korean government has submitted a request to delay the enforcement of the law to allow tax credit subsidies for electric vehicles finally assembled in the North American region for three years until 2025, but it is uncertain whether this will be accepted.

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