Biden reacts positively to Korea over IRA
U.S. President Joe Biden expressed a favorable attitude toward Korea companies, Sunday, at a time when the U.S.’ implementation of the Inflation Reduction Act (IRA) is expected to bring a negative impact on Korean carmakers and battery makers.
This is considered a step further, following his letter to President Yoon Suk-yeol last month in which he said the two countries should continue consultations on IRA issues.
Yoon and Biden had a summit in Phnom Penh, Cambodia, Sunday.
During the meeting, Yoon said, “A consultation channel between Korea and the U.S. to discuss the U.S. Inflation Reduction Act is operating closely. In October, President Biden confirmed the U.S. side’s sincere willingness to consult on the IRA in a personal letter.”
In response, Biden told Yoon “Korean companies have contributed greatly to the U.S. economy in areas such as automobiles and electric car batteries. In consideration of these points, measures to implement the IRA should be discussed,” according to the presidential office.
Yoon responded, “As downward pressure on the global economy is increasing due to tightening finances, we expect closer economic cooperation between Korea and the U.S.”
In August, President Biden signed the IRA into law.
According to this law, customers who purchase electric vehicles (EVs) assembled or manufactured outside North America are unable to qualify for a tax credit of $7,500. The law severely affects Hyundai Motor Group’s car brands — Hyundai Motor, Kia and Genesis — as their EVs are currently manufactured in Korea.