Yoon Suk-yeol wants Biden to settle EV subsidy problems: According to Yoon’s office on Thursday, South Korean President Yoon Suk-yeol requested US President Joe Biden for assistance in addressing Seoul’s worries that new US regulations on electric car subsidies may harm the nation’s manufacturers.
Yoon’s first trip to the US since assuming office in May has overshadowed by Seoul’s resistance to the US Inflation Reduction Act (IRA), which Biden signed last month.
Federal tax incentives for electric cars (EVs) produced outside North America have been eliminated under the new legislation. Making firms like Hyundai Motor Co. and it’s subsidiary Kia Corp. ineligible.
Yoon discussed the issues with Biden in London. Where the two men attended the burial of Queen Elizabeth II of the United Kingdom. Then once again in New York on Wednesday, at the UN General Assembly, according to his office.
According to a statement from Yoon’s office, “President Yoon asked for tight collaboration so that the US administration may address our concerns in the process of executing the Inflation Reduction Act.”
It claimed that Biden requested that the conversation continue and stated that he was “fully aware” of South Korea’s worries.
According to the White House, the two leaders spoke on various topics but omitted electric car tax credits. These topics included supply chain resilience, economic and energy security, and climate change.
After South Korean businesses revealed ambitious investment plans in the United States. Seoul saw the IRA violating Biden‘s promises to strengthen economic relations.
Following a meeting between US Commerce Secretary Gina Raimondo and South Korea’s trade minister Lee Chang-yang in Washington on Wednesday. The US Department of Commerce previously alluded to difficulties between the two nations.
The two “exchanged honest views on US concerns over South Korea’s planned legislation to impose network usage fees to foreign content providers”
There is a campaign in South Korea for legislation requiring foreign video providers. Such as Netflix and Alphabet’s Google, to pay local network costs.
Raimondo expressed sympathy for Seoul’s worries about the IRA and promised to keep in touch.
It stated that “our side clearly expressed the worry that the (IRA) does not match the US desire for supply chain collaboration and would have a detrimental effect on future contracts.”