Yoon Achieves 50 MOUs in US Visit... "Agreed to Reduce Burden on Korean Companies from IRA and CSA"

23 Bio Cases Including Pharmaceuticals and Medical Devices Lead
MOU Signed with All 3 Major US SMR Companies
On IRA and CSA Solutions, "Agreement Between Both Presidents"
Korea-US Governments Cooperate to Reduce Burden on Korean Companies and Improve Technology

Fifty memorandums of understanding (MOUs) were signed between South Korea and the United States during President Yoon Suk-yeol's state visit to the U.S. About half of these MOUs are in the bio sector, including pharmaceuticals, medical devices, and digital health and device exports. Regarding the U.S. Inflation Reduction Act (IRA) and the CHIPS and Science Act (CSA), the two leaders clearly agreed to reduce the burden on Korean companies, raising expectations for further government-level coordination.

Choi Sang-mok, Senior Secretary for Economic Affairs, explained at a press briefing held on the 27th (local time) in Washington D.C. that a total of 50 MOUs were signed across industries including bio, battery, semiconductor, AI (13 MOUs), energy (13 MOUs), and content (1 MOU). Choi said, "President Yoon accompanied an economic delegation of over 120 people as South Korea's first top salesperson. Nearly half of the MOUs signed this time, 23 in total, are in the bio sector, expanding cooperation not only in research and development but also in medical institutions and new medical industries such as digital health."

Significant MOUs were also signed in the energy sector. In energy, MOUs were signed not only on clean energy and hydrogen but also with the three major U.S. companies leading small modular reactor (SMR) projects?TerraPower, Holtec, and NuScale Power?raising expectations that companies from both countries will lead SMR commercialization. Choi said, "Cooperation is increasing in advanced industries such as semiconductors, batteries, and artificial intelligence, and this is expected to play a major role in strengthening the technological alliance between South Korea and the U.S. The energy sector focused on areas supporting carbon neutrality, such as clean energy and hydrogen."

[Image source=Yonhap News]

Choi also mentioned the U.S.-centered supply chain strengthening policies, IRA and CSA, stating, "The two leaders clearly agreed on the direction to reduce the burden and uncertainty for Korean companies," and confirmed that President Biden also issued clear guidelines on this matter.

He said, "IRA and CSA are industrial policies aimed at promoting domestic investment in the U.S. and strengthening supply chains centered on the U.S. Because we are allies, exceptional measures to reduce the burden and uncertainty for our companies require highly technical and detailed intergovernmental consultations. This time as well, the two leaders clearly agreed on the direction to reduce the burden and uncertainty for Korean companies," he emphasized again.

As the South Korea-U.S. alliance expands into a supply chain alliance, both governments share the recognition of the issue and discussions are expected to continue to reduce the burden and uncertainty for Korean companies.

Choi said, "Based on these guidelines between South Korea and the U.S., the Ministry of Trade, Industry and Energy of Korea and the U.S. Department of Commerce agreed this afternoon through the South Korea-U.S. Supply Chain Industry Dialogue (SCCD) to minimize uncertainty and management burdens for corporate investments. They also agreed to continue consultations and to closely cooperate to minimize disruptions to the global semiconductor supply chain and to sustain and upgrade semiconductor industry technology during the implementation of semiconductor export controls."

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