Korea, US discuss IRA, pending trade issues

Industry Minister Bang Moon-kyu, right, poses for a photo with U.S. Commerce Secretary Gina Raimondo in San Francisco, Nov. 15, in this photo released by the Ministry of Trade, Industry and Energy. Yonhap

Korea and the United States discussed pending economic issues, including Washington's inflation act, in line with efforts to expand bilateral ties, the industry ministry said Thursday.

Industry Minister Bang Moon-kyu met with U.S. Commerce Secretary Gina Raimondo on the margins of the Asia-Pacific Economic Cooperation summit in San Francisco on Wednesday (U.S. time), according to the Ministry of Trade, Industry and Energy.

During the meeting, Bang said the two parties should make efforts to play key roles to further advance the bilateral alliance to cover cutting-edge industries and technologies.

The trade minister also requested Washington pay close attention to Korean firms' concerns over the U.S. Inflation Reduction Act (IRA), which provides tax credits of up to $7,500 to purchasers of electric vehicles that are assembled in North America.

Currently, Korean electric cars sold in the North American market are manufactured domestically, making them not eligible to receive the credits. Nevertheless, their products can qualify for support when used for commercial purposes, such as leasing.

Bang said the U.S. IRA guidance on foreign entities of concern, set to be announced this year, should take the structure of the global supply chain in battery and key minerals into consideration.

Bang and Raimondo, meanwhile, also agreed to hold a trilateral ministerial meeting with Japan in early 2024, with the goal of paving the way for deeper cooperation in semiconductors and other key industries. (Yonhap)