KOTRA slammed for insufficient preparedness for US IRA

Korea Trade-Investment Promotion Agency (KOTRA) CEO Yu Jeoung-yeol speaks during the Trade, Industry, Energy, SMEs and Startups Committee's audit of the agency at the National Assembly in Seoul, Friday. Joint Press Corps

By Park Jae-hyuk

Lawmakers of both the ruling People Power Party (PPP) and the main opposition Democratic Party of Korea (DPK) leveled criticism at the Korea Trade-Investment Promotion Agency (KOTRA) for its insufficient preparedness for the U.S. Inflation Reduction Act (IRA).

The agency's local office in Washington, D.C. was also criticized for being negligent in its duty to strengthen its personal networks with U.S. government officials over the past three years.

During the National Assembly audit of 13 institutions under the supervision of the Ministry of Trade, Industry and Energy last Friday, Rep. Lee Jang-sub of the DPK asked KOTRA CEO Yu Jeoung-yeol when he first became aware of the IRA.

Yu answered that he received a briefing about this issue on Aug. 1, a few days after KOTRA's Washington office informed the Seoul headquarters of the new U.S. law's draft version on July 27, the day the version was announced.

Rep. Chung Il-young of the DPK pointed out that the Washington office should have collected information in advance of news reports regarding the draft. Rep. Kim Sung-whan of the DPK also criticized KOTRA's belated measures.

Another main opposition party lawmaker, Rep. Kim Hoi-jae, said he was disappointed regarding KOTRA's paper on the IRA's impact on Hyundai Motor and Kia, as the report lacked any helpful advice for the Korean electric vehicle (EV) manufacturers.

Yu apologized for the agency's failure to come up with a more in-depth analysis.

Rep. Kim Sung-won of the PPP asked Yu whether he had predicted the passage of the IRA.

The KOTRA chief answered that he had not expected the U.S. to deny tax benefits for the purchase of EVs assembled outside of the country.

In response to another question from Rep. Kim about whether the trade ministry had reprimanded the agency after the IRA was passed, KOTRA CEO Yu responded that he was simply ordered to collect additional information.

“No one has taken responsibility for this issue,” the lawmaker said.