(LEAD) S. Korea, U.S. reaffirm efforts to address IRA concerns, economic security during high-level consultations

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By Yi Wonju

SEOUL, Jan. 10 (Yonhap) — Senior diplomats of South Korea and the United States had discussions Tuesday on a range of bilateral issues, including a new U.S. law that offers tax incentives to electric vehicles assembled in North America.

Jose Fernandez, the U.S. under secretary of state for economic growth, energy and the environment, met Second Vice Foreign Minister Lee Do-hoon in Seoul to discuss economic security, such as strengthening supply chain resilience.

The two sides also discussed the easing of discriminatory provisions for Korean-made electric vehicles in the U.S. Inflation Reduction Act (IRA).

“We have taken and continue to take the ROK concerns about the law seriously,” Fernandez said in a press briefing after the meeting, referring to South Korea by its official name, the Republic of Korea.

“We will continue to work together on the ROK’s and other allies’ IRA-related concerns as we move to implement the legislation,” he added.

He stressed that the IRA is intended to address global climate change, saying the U.S. seeks to help “increase the resiliency of global supply chains and promote inclusive economic growth.”

Lee noted their meeting served as an opportunity to affirm the “direction” of cooperation for South Korea and the U.S. as allies in economic security and technology.

The two sides are “key partners” that are “mutually indispensable” in forming economic and industrial solidarity based on universal values, such as freedom and human rights, he added.

The IRA, signed into law by U.S. President Joe Biden last August, gives up to US$7,500 in tax credits to buyers of electric vehicles assembled only in North America, sparking concerns that Hyundai Motor and Kia Corp. could lose ground in the U.S. market.

Fernandez arrived here on Monday, becoming the first senior U.S. official to visit Seoul this year, the 70th anniversary of the bilateral alliance.

Last month, Lee and Fernandez signed a joint statement reaffirming their commitment to continuing constructive discussions to address Seoul’s concerns on the impact of the IRA at the 7th Senior Economic Dialogue in Washington, D.C.

Fernandez plans to meet with representatives from U.S. and South Korean companies, and hold a roundtable on female business leaders with the American Chamber of Commerce before departing for Japan on Wednesday.

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