Korean President Yoon Suk-yeol, right, shakes hands with U.S. President Joe Biden, second from left, after attending the seventh replenishment conference of the Geneva-based Global Fund to Fight AIDS, Tuberculosis and Malaria in New York, Sept. 21. AFP-Yonhap

By Nam Hyun-woo

U.S. President Joe Biden sent a letter to President Yoon Suk-yeol, promising that Washington will continue to consult with South Korea over Seoul's concerns about the fallout of the U.S. Inflation Reduction Act (IRA) on carmakers here, the presidential office said, Wednesday.

Senior presidential secretary for public relations Kim Eun-hye said Yoon received the letter on Tuesday, which contained Biden's messages on the IRA and the recent missile provocations from North Korea.

The presidential office declined to unveil the full details of the letter, but Kim said that Biden "stressed that he is well aware of President Yoon's concerns over the IRA, and the U.S. will continue consultations with South Korea in a candid and open-minded manner."

The IRA offers a tax credit 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 manufacturing and assembly of battery components in North America, among others. The act's conditions are feared to deal a blow to South Korean carmakers selling EVs in the U.S., including Hyundai Motor and Kia, because most of their eco-friendly vehicles are manufactured in Korea.

The letter came after Yoon and Biden briefly met during the South Korean leader's trip to New York last month. They did not have an official summit, but the presidential office said at the time that Biden had expressed his understanding of Seoul's concerns and that he would continue consultations.

During U.S. Vice President Kamala Harris' visit here and meeting with Yoon on Sept. 29, the former also said that she would do her part to address Seoul's concerns about the IRA.

Although the letter does not contain any updates, a senior presidential official said, "This bears significance because the U.S. president has again expressed his understanding of our concerns through a signed letter, and also noted Korean companies' positive roles (in the U.S.)."

"We also think that this shows progress from Vice President Harris' visit," the official said. "At that time, we said the concerns might be addressed through the process of making detailed regulations for the IRA, and we think the letter shows the U.S. intention on this."

A TV cameraman films U.S. aircraft carrier USS Ronald Reagan entering the port of Busan, Korea, Sept. 23. AP-Yonhap

The official also noted that North Korea's launches of ballistic missiles are in blatant disregard of the United Nations' resolutions and a serious threat to the Korean Peninsula and international community, adding that the government will enhance the coordination with the U.S., as well as among South Korea, the U.S. and Japan.

Pyongyang launched an intermediate-range ballistic missile over Japan on Tuesday, which was the first case of a North Korean ballistic missile to fly over Japan in five years. Including Tuesday's missile, the North has fired ballistic missiles five times in the last 10 days.

"I believe the North is taking a step in its scenario to build up the possibility of its seventh nuclear test," the official said.

"As you know, the USS Ronald Reagan aircraft carrier has returned to the East Sea today in response to the missile launch, and there was a precision air strike drill yesterday by a combined strike package of the South Korean and the U.S. air forces," the official said. "This shows that the Seoul-Washington alliance is an action-based alliance, and further actions will be done in response to North Korea's saber-rattling moves."