Trade, Industry and Energy Minister Lee Says

Trade, Industry and Energy Minister Lee Chang-yang

Trade, Industry and Energy Minister Lee Chang-yang remarked on Aug. 29 that the U.S. Inflation Reduction Act is likely to be a violation of KORUS FTA and WTO rules and the South Korean government is planning to bring it to the WTO if necessary.

The act is to limit EV subsidies to those assembled in North America and using more materials and components procured there. Hyundai Motor Group is currently selling five EV models in the United States and the models cannot receive any subsidy according to the law.

“Trade Minister Ahn Duk-geun will visit the United States in order to deal with the issue and a meeting with U.S. Secretary of Commerce Gina Raimondo is scheduled for next month,” he said, adding, “The government will make effort so that South Korean enterprises are not affected by the act.”

In the meantime, Trade Minister Ahn reported the government’s IPEF-related plan to the National Assembly on Aug. 29. Officially launched in May this year, the Indo-Pacific Economic Framework covers the four issues of international trade, supply chain, clean energy, and tax and anti-corruption. Its 14 members include the United States, Japan, Australia, India and South Korea.

“Some say that the IPEF is to rule out China, but this is not true and most of the IPEF members are already in close trade relations with China,” he said.

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