Hyundai Motor Group Executive Chair Chung Euisun, left, listens to U.S. President Joe Biden's speech at Grand Hyatt Seoul in this May 22 file photo. Yonhap

Hyundai Motor chief Chung visits US to lobby lawmakers, officials

By Park Jae-hyuk

Korean businesses have begun taking countermeasures against the Inflation Reduction Act (IRA), instead of waiting for a diplomatic settlement over a conflict triggered by the new U.S. law that denies tax credits to buyers of electric vehicles (EVs) manufactured outside of North America, according to industry officials, Wednesday.

Hyundai Motor Group Executive Chair Chung Euisun departed for the U.S. on Tuesday, along with Hyundai Motor President Kong Young-woon, who is in charge of government relations. Although the automotive group declined to confirm details about the executives' itineraries, Chung reportedly told a local newspaper reporter at Gimpo International Airport that he will take care of overall affairs, including matters related to the IRA.

Chung is expected to visit Washington, D.C. and New York to lobby U.S. lawmakers and government officials to modify the law. He is also likely to try to reassure investors, considering Hyundai Motor's plan to host a J.P. Morgan-sponsored non-deal roadshow in North America from Aug. 29 to 31.

Korea Enterprises Federation Chairman Sohn Kyung-shik also said at the Korea News Editors Association's forum on Tuesday that businesspeople have continuously made efforts to convince the U.S. government and the Congress.

"When I met with the Hyundai Motor Group executive chair yesterday, I expressed concern about Korea's automotive industry," Sohn said. "Both the government and the private sector have complained that the IRA is a violation of the Korea-U.S. free trade agreement (KORUS FTA)."