ANALYSIS Korea advised to pursue short-term gains from US IRA
Washington sources say Korea, US can find middle ground to minimize impact of US IRA By Kim Yoo-chulDespite the victory of U.S. President Joe Biden's party in the November midterm elections, the Inflation Reduction Act (IRA) remains a tricky issue that has complicated relations between the United States and South Korea.In August, Biden officially signed the IRA into law. The core purpose of the law is aimed at tackling rising inflation in the United States by cutting the fiscal deficit as well as energy and healthcare costs.Plus, amid Washington's continued rivalry with Beijing in pursuit of supply chain resilience, the White House is using the IRA as a tool for the renaissance of U.S. manufacturing and improving its job markets, as the law offers federal tax credits for purchases of products manufactured on U.S. soil, backing Biden's eco-friendly agenda. But the key point of concern, at least from Korea's standpoint, is despite Seoul's full support of the Biden administration's political and economic initiatives, the IRA poses complications for the Yoon Suk-yeol administration.Under
Dec 12, 2022By Kim Yoo-chul