Korea, US reaffirm efforts to address IRA concerns in high-level consultations
U.S. Under Secretary for Economic Growth, Energy and the Environment Jose Fernandez, left, speaks during a joint press conference at the foreign ministry in Seoul on Tuesday. Yonhap
A top U.S. State Department official said Tuesday that Washington will continue to work together with Korea to address its concerns about the U.S. Inflation Reduction Act (IRA) as he had related discussions here.
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 ways to boost bilateral cooperation in economic security, including strengthening supply chain resilience and the easing of discriminatory provisions for Korean-made electric vehicles in the IRA.
"We've taken, and we continue to take, the ROK concerns about the law seriously," Fernandez told reporters shortly after the meeting, referring to Korea by its official name, the Republic of Korea.
"And 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.
Fernandez 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."
Korea's Second Vice Foreign Minister Lee Do-hoon, right, shakes hands with U.S. Under Secretary for Economic Growth, Energy and the Environment Jose Fernandez as they attend a joint press conference at the foreign ministry in Seoul, Tuesday. Yonhap
The two sides also discussed ways to advance cooperation in the supply chain for semiconductors and key minerals.
"Following last month's Senior Economic Dialogue that we had in Washington, D.C., we're also implementing key initiatives ... initiatives that include moving forward on our Minerals Security Partnership, joint research and development in critical and emerging technologies, and promoting supply chain resilience," he said.
Lee noted their meeting has served as an opportunity to affirm the "direction" of cooperation for 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.
In a brief meeting with Fernandez, Foreign Minister Park Jin also urged "special attention" from Washington on the easing of the discriminatory provisions.
U.S. Under Secretary for Economic Growth, Energy and the Environment Jose Fernandez speaks during a joint press conference at the foreign ministry in Seoul, Tuesday. Yonhap
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 Korean companies, and hold a roundtable on female business leaders with the American Chamber of Commerce before departing for Japan on Wednesday. (Yonhap)