KOTRA Holds Briefing on Responding to US IRA and EU Supply Chain and Green Legislation

Ministry of Trade, Industry and Energy and Korea International Trade Association Jointly Host Event

The Korea Trade-Investment Promotion Agency (KOTRA), together with the Ministry of Trade, Industry and Energy and the Korea International Trade Association, held a "U.S. Inflation Reduction Act (IRA) and Recent European Union (EU) Economic Legislation Briefing" on the 6th at COEX in Seoul.

This briefing was held as a public-private joint event. Speakers included representatives from KOTRA, the Trade Support Center of the Korea International Trade Association, and the Korea Institute for Industrial Economics & Trade, with about 150 participants from domestic interested companies. The high interest reflected in the recently announced provisional guidance on the U.S. IRA electric vehicle tax credit, the EU Critical Raw Materials Act (CRMA) and the draft Carbon Neutral Industry Act (NZIA) was noted by KOTRA.

Yoon Chang-hyun, Director General of the Trade Policy Bureau at the Ministry of Trade, Industry and Energy, said in his opening remarks, “Recently, major countries such as the U.S. and the EU are actively pursuing country-centered industrial policies to strengthen supply chain resilience. The government plans to continue actively responding as one team with our industry to major issues such as the U.S. IRA and EU economic legislation.”

Jo Eun-gyo, Associate Research Fellow at the Korea Institute for Industrial Economics & Trade, forecasted benefits to the domestic battery and electric vehicle industry value chain from the application of detailed IRA guidelines. In particular, as cathode active materials are classified as constituent materials, it is expected that domestic cathode material companies, which form the production base, will also gain benefits such as cost reduction effects.

Kim Jun-han, Team Leader of KOTRA’s Gumi CIS Team, said, “The IRA includes not only electric vehicle tax credits but also the largest-ever investment in green projects,” adding, “We must closely monitor these trends and strive to discover new business opportunities.”

Ahn Jae-yong, Head of KOTRA’s Brussels Trade Office, stated in his presentation on the EU CRMA and NZIA, “It is necessary to pay attention to the upcoming legislative review and detailed legislative processes,” and added, “KOTRA’s Brussels Trade Office plans to form stakeholder groups by key sectors to quickly disseminate opportunities and risk factors.”

Cho Sung-dae, Director of the Trade Support Center at the Korea International Trade Association, said, “Unlike the U.S. IRA, the CRMA draft does not include discriminatory provisions against non-EU companies,” but noted, “However, companies need to review their raw material sourcing and respond to changes if necessary, and continuously monitor the possibility of changes during internal EU consultations.”

Im So-young, Research Fellow at the Trade Policy Office of the Korea Institute for Industrial Economics & Trade, said, “The NZIA draft focuses on clean energy technologies but may expand to include clean transition technologies for high-emission industries in the future,” adding, “It is necessary to view the legislation comprehensively, considering future legislative trends and its organic relationship with existing EU environmental laws.”

Kim Tae-ho, Head of KOTRA’s Economic and Trade Cooperation Headquarters, emphasized, “Major economic legislations such as the U.S. IRA and EU CRMA include support measures for green industries,” and stated, “If our companies respond proactively, they can fully leverage these as opportunities.”

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