PM assures Hyundai Motor of solutions over U.S. inflation law

▲ Cabinet meeting Prime Minister Han Duck-soo (3rd from R) presides over a Cabinet meeting at the government complex in Sejong, 112 kilometers south of Seoul, on Oct. 18, 2022. (Yonhap)

PM-US inflation law

PM assures Hyundai Motor of solutions over U.S. inflation law

SEOUL, Oct. 19 (Yonhap) -- Prime Minister Han Duck-soo on Wednesday visited a research center of Hyundai Motor and sought to assure the carmaker that South Korea is determined to find solutions to address concerns over the U.S. Inflation Reduction Act (IRA).

The IRA gives tax credits only to electric vehicles assembled in North America, preventing South Korean carmakers from receiving such subsidies because they are yet to produce electric vehicles there.

Han told Hyundai Motor officials that the government "will actively consult with the U.S. Congress and administration to find a solution as soon as possible to cope with the U.S. Inflation Reduction Act."

Han stopped short of providing details on how to address such concerns, but said that South Korea "will mobilize all diplomatic and economic channels" to find a solution.

Han also pointed out that global supply chain disruptions and the U.S. inflation law have posed a significant threat to the Korean auto industry.

To help support the Korean auto industry, the government will provide financial and tax supports for local parts makers to diversify their businesses, Han said.

Earlier this month, U.S. President Joe Biden sent a letter to President Yoon Suk-yeol expressing his willingness to continue frank and open-minded talks on the IRA.

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