Holding a Seminar on U.S. Investment Entry Strategies Covering Issues like Muhyeop and IRA

Investment Consultation Fair Held for Entry into 12 U.S. States

The Korea International Trade Association held the '2022 U.S. Investment Entry Strategy Seminar' on the 4th at the Trade Tower in Samseong-dong. Kim Hyun-chul, Head of the Global Cooperation Division at the Trade Association, is delivering the opening address.

[Asia Economy Reporter Park Sun-mi] The Korea International Trade Association (KITA), in collaboration with the Council of U.S. State Government Representatives in Korea, held the '2022 U.S. Investment Entry Strategy Seminar and Consultation' on the 4th at the Trade Tower in Samseong-dong.

The seminar covered business trends following the U.S. midterm elections, key issues of major bills such as the Inflation Reduction Act (IRA) and the Chips and Science Act (CSA), and investment support programs from the U.S. Department of Commerce in new industry sectors. Twelve U.S. state government representative offices in Korea participated, conducting one-on-one investment consultations with Korean companies in renewable energy, bio, chemical, IT, electronics, and battery sectors.

Kim Hyun-chul, Head of the Global Cooperation Division at KITA, emphasized in his opening remarks, “The IRA’s electric vehicle tax credit regulations provide preferential benefits only to electric vehicles produced within the three North American countries? the U.S., Canada, and Mexico? which may violate the trade norms of the World Trade Organization (WTO) and the Korea-U.S. Free Trade Agreement (FTA).” He added, “If Korean electric vehicles and batteries receive equal treatment as U.S.-made products, the Korean automotive industry could play a significant role in expanding the electric vehicle industry base within the U.S.”

He continued, “KITA plans to fully support the establishment of supply chains between the two countries by promoting outreach activities to U.S. state governments and federal lawmakers in October to respond to the IRA,” and noted, “Since the results of the U.S. midterm elections on November 8, held during the president’s term, are expected to significantly affect the Biden administration’s policy execution capabilities, Korean businesspeople should closely monitor the election outcomes.”

Moon Nam-jung, Senior Researcher of Global Strategy at Daishin Securities Research Center, in his presentation titled ‘2022 U.S. Midterm Elections Preview,’ stated, "Both the Democratic and Republican parties are expected to continue the U.S.-first policy and the momentum to activate investments in energy, climate change, and semiconductor industries,” adding, “The direction of ‘Bidenomics’ will be determined depending on whether inflation is controlled.” Accordingly, growth is expected mainly in energy and climate change-related projects (electric vehicles and batteries, solar power, hydrogen, etc.), which account for most of the IRA’s fiscal expenditures, and the $52.7 billion Chips and Science Act is also anticipated to positively influence investment plans of major companies such as Intel and Samsung.