SEOUL President Joe Biden has expressed his willingness to continue talks with South Korea over the recent U.S. legislation that denies subsidies to most foreign manufacturers of electric vehicles EVs, an official from Yoon's office said on Wednesday.
Biden gave assurances in a letter to South Korean President Yoon Suk-yeol, who had asked the U.S. president last month for help in allay Seoul's concerns that the new U.S. rules would hurt South Korea's automakers.
The official said that President Biden has reaffirmed his understanding of our concerns through a personally signed letter that shows Biden's willingness to be considerate towards South Korean companies in the future.
The Inflation Reduction Act, signed by Biden in August, requires EVs assembled in North America to qualify for tax credits in the United States, but excluded Hyundai Motor Co and its affiliate Kia Corp from EV subsidies, as they do not yet make the vehicles there.
Only about 20 EVs qualify for subsidies under the new rules, including models from Ford Motor Co and BMW.