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Assembly passes resolution voicing concerns over U.S. inflation act

All News 15:33 September 01, 2022

SEOUL, Sept. 1 (Yonhap) -- The National Assembly on Thursday passed a resolution expressing concerns over the U.S. Inflation Reduction Act (IRA) that excludes electric vehicles assembled outside North America from tax incentives.

The law, signed by U.S. President Joe Biden in August, calls for the expansion of tax subsidies for EV purchases, but only for those assembled in North America. It also requires U.S.-made batteries and battery materials in EVs.

South Korean carmakers, including Hyundai Motor Co. and Kia Corp., are feared to lose ground in the world's most important auto market due to the law, as they make their flagship models at domestic plants and ship them overseas.

The resolution -- which combines two resolutions respectively submitted by the parliamentary foreign affairs committee and the parliamentary committee on trade, industry and energy -- highlights the discriminatory nature of the law and calls for the Korean government to actively respond to the issue.

A majority of 254 of 261 lawmakers who attended the plenary meeting voted in favor of it.

A government delegation visited Washington this week to discuss the issue with the U.S. side. Trade Minister Ahn Duk-geun and Industry Minister Lee Chang-yang are scheduled to make back-to-back visits to Washington in the coming weeks for talks with their counterparts on the matter.

Seoul has proposed forming a formal channel to discuss the concerns regarding the tax credits under the IRA, and Washington has given a positive response, Deputy Trade Minister Ahn Sung-il told reporters during the delegation's visit Wednesday.

A file photo of the National Assembly (Yonhap)

A file photo of the National Assembly (Yonhap)


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