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South Korea’s President Yoon Suk-yeol asks US President Joe Biden to resolve concerns over EV subsidy rules – Times of India

SEOUL: South Korean President Yoon Suk-yeol requested US President Joe Biden to assist deal with Seoul’s issues that new US guidelines on electrical car subsidies will harm the nation’s automakers, Yoon’s workplace stated on Thursday.
Seoul’s opposition to the US Inflation Discount Act (IRA), signed by Biden final month, has overshadowed Yoon’s first journey to the USA since taking workplace in Could.
The brand new legislation eliminates federal tax credit for electrical automobiles (EVs) made outdoors North America, that means firms like Hyundai Motor Co and its affiliate Kia Corp will not be eligible.
Yoon relayed the issues to Biden in London, the place each leaders attended the funeral of Britain’s Queen Elizabeth, and once more in New York on Wednesday on the sidelines of the UN General Assembly, his workplace stated.
“President Yoon requested shut cooperation in order that the US administration can resolve our issues within the technique of implementing the Inflation Discount Act,” Yoon’s workplace stated in a press release.
Biden stated he was “effectively conscious” of South Korea‘s issues and requested to proceed discussions, it added.
The White House stated the 2 leaders mentioned a broad vary of points together with provide chain resilience, financial and vitality safety and local weather change, however didn’t point out electrical car credit.
Seoul sees the IRA as a betrayal of Biden’s vows to spice up financial ties after South Korean firms unveiled daring funding plans in the USA.
The US commerce division earlier hinted at tensions between the 2 international locations after a gathering between US Commerce Secretary Gina Raimondo and South Korea’s commerce minister Lee Chang-yang in Washington on Wednesday.
The pair “exchanged frank views on US issues about South Korea’s pending laws to impose community utilization charges on international content material suppliers and South Korea’s issues regarding electrical car tax credit,” it stated.
In South Korea, there’s a legislative push to require abroad content material suppliers together with Netflix and Alphabet’s Google to pay native community charges.
Seoul’s commerce ministry stated Raimondo sympathized with Seoul’s issues on the IRA and vowed to proceed consultations.
“Our aspect clearly conveyed the priority that the (IRA) doesn’t match the US drive for provide chain cooperation and would deliver a destructive impression on future initiatives,” it stated in a press release.

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