The U.S. Congress remains “open-minded” and willing to listen to concerns of South Korean firms over the implementation of the Inflation Reduction Act (IRA), Sen. Jon Ossoff said Thursday.
In an interview with Yonhap News Agency, Ossoff, who is currently in Seoul leading an economic delegation from his home state of Georgia, said, “Dialogue will continue and efforts to refine the implementation of the (IRA) in consultation with allies will continue.”
“I think we’re open-minded and always open to dialogue, always willing to listen,” Ossoff said when asked whether the U.S. Congress supports efforts to address concerns of South Korean companies over the IRA.
The IRA gives up to $7,500 in tax credits to buyers of electric vehicles (EVs) assembled only in North America, sparking concerns that Hyundai Motor Co. and its smaller affiliate Kia Corp. could lose ground in the U.S. market, as they make EVs at domestic plants for export to the U.S.
But new guidelines announced by the U.S. Treasury Department last week helped address some concerns by “substantially” reflecting South Korea’s opinions in terms of conditions for tax credits, according to Seoul’s industry ministry.
Ossoff’s visit came as Georgia has successfully attracted high-profile investments from South Korean companies as of late. Hyundai Motor Group last year announced a plan to invest US$5.54 billion to build a dedicated EV and car battery plant there. Also, Hanwha Solutions Corp. announced its plan to invest $2.57 billion to build a production complex for solar panel parts in January.
The trip marks Ossoff’s second economic delegation visit to South Korea, with his first coming in November 2021. In his latest visit, the senator has met with business community leaders and even met with President Yoon Suk Yeol in a group meeting with other visiting U.S. lawmakers Wednesday.
“I told President Yoon that I admired his courage in working to strengthen trilateral relations between the U.S., Korea and Japan,” Ossoff said of the meeting a day earlier. The senator said he delivered to Yoon his commitment to strengthen trade and investment between South Korea and his home state.
Ossoff hinted that there may be plans announced to facilitate more investment by South Korean companies in Georgia in the near future. “I expect that there will be soon announced new opportunities for Korean businesses,” he said, without elaborating further.
The senator also expressed excitement over the upcoming U.S. state visit by Yoon to mark the 70th anniversary of the Seoul-Washington alliance. Yoon is scheduled to hold a summit with U.S. President Joe Biden in Washington, D.C., on April 26.
“I wrote to President Biden earlier this year encouraging him to invite President Yoon for a state visit, and then led an effort in the Senate to encourage the Speaker of the House to invite the president to address a joint session of Congress,” Ossoff said.
Regarding the sensitive matter of whether South Korea should decide to provide lethal weapons or not to Ukraine, Ossoff stressed that it is a decision that should be made by Seoul while expressing appreciation of Seoul’s humanitarian aid offered to the war-torn nation.
Source: Yonhap News Agency