Deputy Trade Minister Ahn Sung-il, center, speaks to reporters at Washington Dulles International Airport before heading home after a three-day visit to the U.S., Aug. 31. Yonhap

The United States has given a positive response to Korea's proposal to form a formal channel to discuss Seoul's concerns over the Inflation Reduction Act (IRA), a Korean official said Wednesday.

Deputy Trade Minister Ahn Sung-il also said the U.S. fully understands Korea's concerns over the new U.S. law and that it is ready to discuss ways to minimize potential damage from the newly enacted law to Korean firms.

"They too were taking this issue very seriously and were aware of our concerns," Ahn told reporters before heading home following his three-day visit to Washington.

"(They) said they consider Korea as an important ally and that they are ready, so we should continue discussing the issue," added Ahn.

U.S. President Joe Biden signed into law the Inflation Reduction Act on Aug. 16, allowing a government tax credit of up to $7,500 for each electric vehicle purchase.

The law, however, offers such incentives for only vehicles assembled in North America with batteries produced in the U.S., effectively excluding all electric vehicles produced in Korea and other countries from the benefit.

Seoul says the U.S. law violates the U.S.-Korea free trade agreement, under which products from either country are given the same treatment as domestic products or have the same advantages as products from countries with most-favored nation status.

Ahn said Seoul proposed forming a joint communication channel to specifically discuss issues related to the IRA, and that the U.S. responded "positively."

He added the countries will further discuss the specifics of such a communication channel when Trade Minister Ahn Duk-geun visits Washington early next week for talks with his U.S. counterparts. (Yonhap)