PPP mulls addressing U.S. Congress on inflation act concerns

SEOUL, Sept. 7 (Yonhap) -- The ruling People Power Party (PPP) is considering sending a letter to U.S. Congress to voice concerns over the U.S. Inflation Reduction Act (IRA) that is feared to hurt South Korean automakers, a lawmaker said Wednesday.

"The government and the ruling party are considering sending a letter to U.S. Congress to request cooperation based on the spirit of the South Korea-U.S. alliance to swiftly resolve the issue," Rep. Han Moo-kyung, the PPP's leader on the parliamentary trade and industry committee, told a party response meeting.

"We ask for the main opposition's bipartisan support," Han said.

The IRA, signed by U.S. President Joe Biden in August, gives tax credits to buyers of electric vehicles assembled only in North America, sparking concerns that carmakers here will lose ground in the U.S. market, as they make EVs at domestic plants for export.

"We are in discussion on whether to send the letter in the name of the ruling party or to escalate it to a standing committee or assembly level," Han told Yonhap News Agency by phone, adding that details are being arranged with the government.

Earlier this month, the National Assembly also passed a resolution which highlights the discriminatory nature of the law and calls for the Korean government to actively respond to the issue.