Head Andeokgeun Discusses IRA Foreign Concerned Companies Issues with U.S. Side

Andeokgeun, Head of the Trade Negotiation Bureau at the Ministry of Trade, Industry and Energy, discussed current issues such as the U.S. Inflation Reduction Act (IRA), semiconductor subsidies, and steel tariffs with Mike Phile, Deputy National Security Advisor for the U.S. National Security Council (NSC), during his visit to Korea on the 30th.

On the 30th, both sides shared the recognition that the Korea-U.S. alliance is evolving from a traditional security alliance to an advanced technology, industry, and supply chain alliance, based on the Korea-U.S. summit held in April and the Korea-U.S.-Japan summit in August.

Both parties agreed to further strengthen cooperation in a mutually beneficial direction. Discussions were also held regarding the expected announcement by the U.S. Treasury Department around the 1st of next month of detailed regulations on 'Foreign Entities of Concern' (FEOC) that would be ineligible for electric vehicle tax credits under the IRA.

During the meeting, Head Andeokgeun emphasized that when establishing the FEOC guidance under the IRA, the stability of the global supply chain for critical minerals and battery components must be taken into account.

Previously, the Korean government submitted a statement to the U.S. government requesting clarification on which companies fall under the FEOC category. Head Andeokgeun requested that the contents of the statement delivered by the Korean government to the U.S. in June be fully reflected.

The IRA stipulates that from 2025, electric vehicle tax credits will not be granted if critical minerals procured from FEOCs are used in batteries, regardless of the proportion. Currently, the U.S. Infrastructure Act’s definition, which defines FEOCs as companies owned or controlled by the governments of China, Russia, North Korea, and Iran, is being applied.

Head Andeokgeun also requested consideration for Korean companies investing in the U.S. when implementing subsidies under the U.S. Semiconductor Act, and improvement of Section 232 of the Trade Expansion Act, which imposes high tariffs on imported steel and aluminum. Additionally, he explained that a bill to expand professional visa quotas for Koreans is pending in the U.S. Congress, and requested attention and support for the prompt passage of the bill, given the recent significant increase in Korean companies’ investments in the U.S.

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