Dissatisfied with the "Inflation Reduction Act", South Korea's resolution urges the United States to issue subsidies for Korean-made electric vehicles

According to media reports, on September 1, the South Korean National Assembly passed a resolution involving the U.S. Inflation Reduction Act (IRA). As a basic principle, the resolution urges the U.S. to provide Korean-made electric vehicles with the same tax benefits as North American vehicles based on the Korea-U.S. Free Trade Agreement.

The South Korean National Assembly held a plenary meeting that afternoon, and the resolution titled "Resolution to Urge the United States to Provide Tax Benefits for Korean-made Electric Vehicles Based on the Korea-U.S. Free Trade Agreement" was finally passed. The resolution points out that the Inflation Reduction Act does not conform to the basic principles of the Korea-US Free Trade Agreement and WTO norms. During the talks between the leaders of South Korea and the United States in May this year, the supply chain cooperation between the two countries was also reiterated. The implementation of the "Inflation Reduction Law" is inconsistent with the general direction of economic and trade cooperation between the two countries.

The resolution also requires the government to continue to negotiate with the U.S. to allow Korean-made cars to enjoy the same tax incentives as North American cars, so as not to lose market competitiveness.