[Asia Economy Reporters Lee Ji-eun and Kwon Hyun-ji] Kwon Seong-dong, floor leader of the People Power Party, requested that the government immediately begin negotiations, stating that the U.S. government's 'Inflation Reduction Act' does not align with the spirit of the Korea-U.S. economic security alliance.
At the floor strategy meeting held on the morning of the 19th, Floor Leader Kwon said, "The government should immediately start negotiations with the U.S. government to ensure that Korean-made electric vehicles receive equal treatment as North American-made ones." He added that support measures, such as temporary tax relief on corporate taxes and subsidies for affected automakers and related industries, should also be actively considered.
Floor Leader Kwon emphasized, "This U.S. measure is highly likely to conflict with the Korea-U.S. Free Trade Agreement (FTA)," and "Above all, the U.S. tax discrimination measures do not align with the spirit of strengthening the economic security alliance between Korea and the U.S."
He criticized, "According to the principle of national treatment, Korean-made electric vehicles should receive the same tax benefits as products made in the North American region. Furthermore, the U.S. is promoting the Indo-Pacific Economic Framework (IPEF) to secure allies for global supply chain cooperation, and excluding strong candidate countries like Korea directly contradicts this vision."
He also pointed out the subsidy issue concerning Korean-made electric vehicles exported to China. Floor Leader Kwon stated, "Korean-made electric vehicles exported to China receive no subsidies from China, whereas Chinese-made electric vehicles receive subsidies from the Korean government," criticizing, "This is the result of the previous Moon Jae-in administration focusing solely on electric vehicle distribution targets and failing to uphold even the basic principle of reciprocity."
He continued, "Our government must decide whether to demand subsidies for Korean-made electric vehicles from the Chinese government or to abolish subsidies for Chinese-made electric vehicles," adding, "Institutional design and reform based on fair reciprocity are urgently needed."
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