"US IRA Subsidy Benefits... Top Recipients Are Foreign Companies from Korea, Japan, etc."

Although the United States introduced the Inflation Reduction Act (IRA) to strengthen its domestic supply chain, American media analyzed that the subsidy benefits actually went to foreign companies such as those from Korea and Japan.

On the 20th (local time), The Wall Street Journal (WSJ) reported that since the passage of the climate law last year, the U.S. has poured an enormous amount of government subsidies into building the green energy industry.

The IRA includes provisions to provide $370 billion (approximately 468 trillion won) in subsidies for the green energy sector under the pretext of responding to climate change.

Panasonic logo of Japan

One of the main goals of the IRA is to reduce dependence on China in the electric vehicle battery supply chain. Accordingly, to receive tax credit benefits, a significant portion of battery components and raw materials must be sourced from the U.S. or countries that have free trade agreements (FTA) with the U.S.

WSJ pointed out that projects related to companies from Korea, Japan, China, and others account for more than 60% of the total U.S. government spending. It also added that among the top 20 investments, 15, and especially in the case of battery factories, almost all projects are associated with foreign companies.

WSJ explained, "Overseas manufacturers can claim billions of dollars in tax credits, making them the biggest winners related to the climate law," citing the example of Japan's Panasonic, which supplies electric vehicle batteries to U.S. Tesla.

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