Trade, Industry and Energy Minister Lee Chang-yang convened a public-private joint conference on November 29 at the Korea Chamber of Commerce and Industry (KCCI) and facilitated discussions on the U.S.’ Inflation Reduction Act (IRA) to gather opinions and consider response measures.
This public-private conference was held to assess the overall situation prior to IRA enforcement beginning January 2023, so that the Government and industries can seek countermeasures together. Attendees included representatives from eight companies and associations, including Hyundai Motor, Samsung SDI, LG Energy Solution, Korea Automobile Manufacturers Association (KAMA) and Korea Battery Industry Association (KBIA).
In his opening remarks, Minister Lee stated that “the Korean government has been most swift and proactive in asserting its stance through summit meetings and negotiations with the U.S. Congress and the Biden administration.”
President Biden’s handwritten letter, both heads of state expressing their will to continue negotiations, and a revised bill proposal by the U.S. Senate and House of Representatives are some outcomes gained thus far. The Minister emphasized that full measures will be taken to maximize benefits and minimize risks.
Minister Lee added that “on the occasion of this conference, the Government plans to pursue short-term and mid-to-long term measures in tandem with industries.” He relayed that domestic measures will also be pushed, and asked for special interest in employment and investment within Korea as well.
Law amendment will be difficult, but the Ministry’s outreach to the U.S. Congress will continue, centering on the revised bills proposed by the U.S. Senate and House of Representatives containing a three-year grace period on the terms mandated for EV tax credit.
The Korean government, on November 4, submitted to the U.S. Treasury Department an official statement concerning the U.S. administration’s subordinate statutes and held Korea-U.S. working-level talks and consultation at the White House to make several proposals, including relaxing the terms on final assembly and further specifying the requirements on minerals and parts for batteries.
According to the U.S. government’s estimations, approximately KRW 500 trillion worth of IRA incentives will be given across various sectors over a 10-year period. Korean industries intend to maintain close communication with the Government in responding to related issues.
Source: Ministry of Trade, Industry and Energy