S. Korean vice minister visits US for talks on Inflation Reduction Act

WASHINGTON -- South Korea's First Industry Vice Minister Jang Young-jin arrived in the United States on Wednesday for talks on a wide range of issues that he said require close cooperation between the allies.

Jang said topics of discussion with his US counterparts will include the Inflation Reduction Act, as well as the US import quota on South Korean steel products.

"While negotiating these issues, we will also be discussing technology cooperation," he told reporters shortly after arriving in Washington.

Jang's trip to the US follows a series of high-level discussions between the allies over Seoul's concerns related to the IRA, which will provide government tax credits of up to US$7,500 to those who purchase new electric vehicles.

The tax incentives, however, are only offered to vehicles assembled in North America, and those built with batteries that use a certain amount of minerals produced in this region, potentially putting foreign-made electric vehicles, including those from South Korea, at a significant disadvantage in what many describe as a violation of World Trade Organization regulations on national treatment.

The US government recently announced implementation guidelines of the IRA that entitled foreign-made electric cars to tax benefits when they are sold for commercial use.

"The guidelines for commercial use vehicles somewhat reflected our position, and they also afforded many opportunities for us in the solar energy industry," said Jang.

"We hope the US will quickly provide regulations on the required amount of minerals (for EV batteries)," he added.

The Ministry of Trade, Industry and Energy earlier said Jang will meet with senior officials from the US commerce department and the White House during his three-day stay here. (Yonhap)