The South Korean government expressed concern to the United States through various channels because South Korean electric vehicles were excluded from the list of tax deductions under the Inflation Reduction Act.
JOIN TIP3X ON TELEGRAM
According to the forecast, electric vehicles such as Hyundai IONIQ 5 and Kia EV6 produced and exported in South Korea may not be eligible for tax relief, and their sales in the United States will also face a hit.
South Korean officials pointed out that the electric vehicle subsidy program proposed by the Inflation Reduction Act not only violates the Korea-US Free Trade Agreement (FTA) but also violates WTO rules.
The passage of the bill comes after a joint meeting between Hyundai Motor Co. and battery makers LG Energy Solution, Samsung SDI, and SK, the South Korean companies asked South Korean authorities to support South Korean companies entering the United States to ensure they enjoy the non-discriminatory treatment.
South Korea also sent a letter to the U.S. House of Representatives asking the U.S. to include electric vehicle and battery components manufactured or assembled in South Korea within the scope of U.S. tax incentives, but the request was not adopted.
