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South Korean President Yoon Suk-yeol today conveyed to President Joe Biden his concern about the effects of the U.S. anti-inflation law on the Asian country’s automakers.
The brief meeting took place in New York on the sidelines of the UN General Assembly being held these days.
“President Yoon conveyed our companies’ concerns about the U.S. Inflation Reduction Act and requested that the U.S. administration cooperate closely with South Korea in the process of the enforcement of this law to resolve our concerns,” explains a statement released by the South Korean presidential office.
“In response, President Biden said he is well aware of our concerns and that South Korea and the U.S. should continue to hold in-depth talks,” the text adds.
The Inflation Reduction Act, passed this summer, extends tax exemptions for the purchase of electric vehicles, but only for those assembled in the United States, which must also mount batteries manufactured entirely in the country.
South Korea and the European Union (EU) have pledged to respond jointly to a problem that is hurting their vehicle manufacturers in one of their largest markets in the world.
The South Korean statement also said Yoon and Biden “assessed ongoing bilateral consultations on extended deterrence and agreed to further strengthen bilateral cooperation to deter North Korean attacks and develop joint response plans against its provocations.”
The summit between the two sides last May resulted in a commitment that Washington will pursue “extended deterrence,” which involves deploying its strategic assets on the Korean Peninsula in a “coordinated manner and as needed” based on Pyongyang’s actions.
North Korea has remained isolated from the outside world since the beginning of the pandemic and has not responded to US and South Korean requests to resume disarmament dialogue.
In fact, Pyongyang approved last year a weapons modernization plan and, according to Seoul and Washington, has been prepared for months to carry out a new nuclear test.
