Top trade officials of South Korea and the United States discussed U.S. acts on semiconductors and electric vehicles (EVs) on Thursday, as well as a range of pending bilateral issues, Seoul's industry ministry said.
Seoul's Trade Minister Ahn Duk-geun and U.S. Trade Representative (USTR) Katherine Tai held a meeting in Seoul, as Tai is in South Korea to attend the two-day Summit for Democracy that began Wednesday.
During the meeting, Ahn called on Washington to address concerns by the Seoul government and South Korean companies over the leakage of confidential data from companies receiving state funding under the Chips and Science Act.
Under the act, foreign chipmakers can receive subsidies totaling US$52.7 billion and tax incentives for setting up production facilities in the U.S. But it came with a number of major strings attached, such as requiring companies receiving subsidies to submit data on their cash flows, yield rate and profitability, and provide child care for workers.
The guardrails of the law were announced last week, and the Seoul government has vowed active consultations with Washington during the 60 days of public comment.
Also on the table was the Inflation Reduction Act (IRA), which stipulates the exclusion of EVs assembled outside of North America from tax incentives. This has caused concerns that Hyundai Motor Co. and Kia Corp. will lose ground in the U.S. market as they make EVs at domestic plants for export to the U.S.
Ahn also asked for negotiations to be launched for the possible revision of the U.S.' Section 232 tariff rules.
In 2018, the Donald Trump government waived the tariffs on South Korean steel products in return for a yearly import quota of 2.63 million tons of steel, or 70 percent of Seoul's average steel products export volume over the past three years.
Washington wrapped up negotiations on the tariff issue with the European Union, Japan and Britain last year, but it has maintained a negative stance on beginning talks with South Korea.
Officials said the two sides have continued close consultations on those pending trade issues to advance bilateral economic and industrial ties further.
Source: Yonhap News Agency