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| The KITA Chairman Koo Ja-yeol, right, shakes hand with U.S. Sen. Jon Ossoff at his office in Georgia, on Oct. 11. Courtesy of KITA |
By Kim Jae-heun
Korea International Trade Association (KITA) Chairman Koo Ja-yeol met with U.S. Senator Jon Ossoff of Georgia on Tuesday (local time), requesting the legislator to help delay the implementation of the Inflation Reduction Act (IRA) for three years, KITA said Wednesday.
"The U.S. is Korea's largest investment destination. As Korea plays a crucial role in the U.S. supply chain of high-tech industries, we ask you to take care of Korean companies operating there to prevent any discrimination against them," said Koo, who is currently in the United States. "Find a way to postpone the adaptation of the IRA for three years as Korean companies, including Hyundai Motor, are contributing to production increases and job creation in Georgia and other states by making large investments."
The chairman also delivered his message that the IRA could violate the Korea-U.S. free trade agreement (FTA) and the World Trade Organization's trade practices, since it only grants tax credits to electric vehicles manufactured in North America.
"Following the conclusion of the Korea-U.S. FTA, electric vehicles, batteries and battery materials produced in Korea need to be treated the same as those made in the U.S.," Koo said.
The chairman also met with Pat Wilson, the commissioner of the Georgia Department of Economic Development in the southeastern U.S. states, to stress the need to apply the IRA's flexible policies.
"For the smooth investments of Korean firms, we need decent infrastructure and skilled workers. We request prompt and continuous policy support so that Hyundai Motor's new electric vehicle plant can be built as soon as possible," Koo added.
U.S. President Joe Biden signed the IRA in August that excludes EVs assembled outside of North America from tax incentives. This immediately raised concerns among Hyundai Motor and Kia Motors who fear they will lose ground in the U.S. market as the two automakers produce EVs at Korean plants for export to the U.S.
