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US, South Korea exchange ‘candid views’ amid EV subsidy controversy

Tensions over economic issues are mounting as South Korean President Yoon Suk-yeol makes his first visit to the United States.

The United States said Wednesday that the U.S. Commerce Secretary and South Korea’s trade minister exchanged “candid views” on South Korea’s pending law on foreign content providers’ network usage fees and Washington’s electric vehicle credits during a meeting. rice field.

The Inflation Reduction Act, signed into law by President Joe Biden last month, eliminates federal tax credits for electric vehicles manufactured outside of North America, and companies including Hyundai Motor and its affiliate Kia Motors are no longer doing so. not eligible for any subsidies.

South Korean President Yoon Seok-yeol arrives this week for his first official visit to the US, but tensions threaten Disrupt recent indications of alliance strength with Washington.

In South Korea, legislation is being taken to require the likes of Netflix and Alphabet’s Google to pay local network fees.

Secretary Gina Raimond and South Korea’s Lee Chang-yang reaffirmed the importance of bilateral economic ties, but hinted at tensions, according to a statement by the U.S. Department of Commerce.

“They exchanged candid views on US concerns about South Korea’s pending law imposing network usage fees on foreign content providers and South Korea’s concerns about electric vehicle tax credits,” the two said.

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