President Yoon Suk-yeol shakes hands with U.S. Vice President Kamala Harris during their meeting at the former's office in Yongsan District, Seoul, Thursday. Courtesy of the presidential office

Yoon, Harris reaffirm importance of ROK-US alliance

By Nam Hyun-woo

U.S. Vice President Kamala Harris said she will do her part to address South Korea's concerns about the U.S. Inflation Reduction Act (IRA), offering a silver lining to carmakers here who fear plunging U.S. sales stemming from the law that exempts subsidies on electric vehicles made outside of America.

According to deputy presidential spokesperson Lee Jae-myoung, Harris made those remarks during her 85-minute meeting with President Yoon Suk-yeol in Seoul, Thursday.

The two also shared their views on the importance of the Seoul-Washington alliance in deterring North Korea's intensifying nuclear and missile threats and the necessity of implementing a liquidity facility, which appears to refer to a currency swap between the two countries.

"During the meeting, Harris said that not only she but also President Joe Biden are well aware of South Korea's concerns about the IRA, and she said she will make efforts to address (Seoul's) concerns during the process of enforcing the law," Lee said.

The IRA offers a tax credit of $7,500 (10.8 million won) for U.S. consumers of electric vehicles (EVs) that fit a number of requirements, including: final assembly in North America, the sourcing of critical materials in batteries from the U.S. or countries that have free trade agreements with the U.S., and the manufacture and assembly of the battery components in North America, among others.

However, South Korean carmakers, including Hyundai Motor and Kia, are expected to suffer a hefty blow from the act as most of their EVs are manufactured in the South.

During his conversation with Biden in New York last week, Yoon voiced Seoul's concerns over the IRA, and the U.S. leader responded that the two countries should continue to hold consultations on this matter, according to the presidential office.