S. Korea to provide official feedback to U.S. on IRA this week

South Korea will submit an official written opinion to the United States this week regarding an act that excludes electric vehicles assembled outside of North America from tax credits, officials said Wednesday.

The U.S. Treasury Department is requesting public input on the Inflation Reduction Act (IRA) that gives up to US$7,500 in tax credits to buyers of EVs assembled only in North America. The move has sparked concerns that Hyundai Motor and Kia Corp. could lose ground in the U.S. market, as they make EVs at domestic plants for export to the U.S.

“We are working to provide official feedback regarding the issue this week. We’ve been thoroughly reviewing the matter, and having close consultations with experts and businesses,” an official of Seoul’s industry ministry said.

The deadline for the submission is Nov. 4 (U.S. time).

South Korea’s Trade Minister Ahn Duk-geun said Wednesday that the U.S. department’s guidance is crucial in implementing the law and vowed thorough responses to minimize potential negative impacts of the IRA on South Korea’s trade and investment.

In addition to the government’s opinion, companies and business associations concerned here will submit statements containing more specifics to the U.S. side, the minister said.