SEOUL (Reuters) – An official from Yoon’s office said on Wednesday that President Joe Biden has said he is willing to keep talking with South Korea about new U.S. laws that cut off subsidies for most foreign companies that make electric vehicles (EVs).
In a letter to South Korean President Yoon Suk-yeol, Biden gave Yoon this promise. Yoon had asked the U.S. president for help last month to calm Seoul’s fears that new U.S. rules would hurt South Korea’s automakers.
“We think that President Biden showed that he understood our concerns by sending us a letter that he personally signed. “This shows that Biden is willing to treat South Korean companies with respect in the future,” the official said.
The Inflation Reduction Act, which Biden signed in August, says that electric vehicles (EVs) made in North America are eligible for tax credits in the United States. However, Hyundai Motor Co. and its subsidiary Kia Corp. are not eligible for EV subsidies because they don’t make EVs there yet.
So, only about 20 EVs, including some from Ford Motor (NYSE: F) Co. and BMW, can get subsidies under the new rules.