[2022 National Audit] IRA's 'Delayed Response' Under Fire... YTN Sale Policy 'Reconfirmed' (Comprehensive)

Industry Ministry Criticized for IRA Response... Lee Chang-yang "Korea Was the Fastest"
"Aware of Bill Immediately After Draft Release... Responded via US Embassy"
Reaffirms YTN Sale Policy... "No Consideration for Re-examining from Scratch"

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy Leaving the Commendation Ceremony
(Seoul=Yonhap News) Reporter Ha Sa-heon = Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is leaving the commendation ceremony after the morning session was adjourned during the audit of the Trade, Industry, Small and Medium Venture Business Committee held at the National Assembly in Yeouido, Seoul on the morning of the 4th. 2022.10.4 [Photo by National Assembly Press Photographers]
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The Ministry of Trade, Industry and Energy's response to the U.S. Inflation Reduction Act (IRA) has come under scrutiny in this year's National Assembly audit. Critics argue that the ministry missed the 'golden time' to reflect Korea's position in the legislation due to its delayed response to the IRA. The ministry also reaffirmed its intention to sell the YTN shares held by Korea Electric Power Corporation's subsidiary, KEPCO KDN.

On the 4th, during the National Assembly audit held by the Industry, Trade, Energy, Small and Medium Enterprises Committee, Minister Lee Chang-yang stated, "Looking at countries with similar positions such as Japan and Germany, Korea is generally ahead in terms of awareness timing and the intensity and level of response to the IRA," adding, "Foreign media also say so." This was a direct rebuttal to the Democratic Party's criticism that the ministry responded late to the IRA.

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy listening to questions related to the 'Government IRA Act Response Log'
(Seoul=Yonhap News) Reporter Ha Sa-heon = Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is listening to questions from Democratic Party lawmaker Kim Yong-min regarding the 'Government IRA Act Response Log' at the Trade, Industry, Small and Medium Venture Business Committee's audit held at the National Assembly in Yeouido, Seoul on October 4, 2022. 2022.10.4 [Photo by National Assembly Press Photographers]
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No Mention of IRA in Yoon-Pelosi Phone Call

Minister Lee emphasized that the ministry recognized the bill immediately after the IRA draft was released. He said, "The bill was made public on July 28, and the next day, the embassy in the U.S. reported the IRA proposal to us," adding, "At the embassy level, we consulted with the industry about the impact of this law and also requested a review from a legal advisory firm."

There were also opinions that the opportunity for U.S. House Speaker Nancy Pelosi's visit to Korea was missed. Speaker Pelosi visited Korea in early August and spoke with President Yoon Suk-yeol, but there was no mention of the IRA. Minister Lee also responded that he did not separately report IRA-related issues to President Yoon during Pelosi's visit. He said, "The presidential office staff may have reported, but I have never reported as a minister."

Concerns were also raised about the European Union's (EU) 'European version of the IRA,' the Raw Materials Act (RMA). Democratic Party lawmaker Hong Jung-min said, "I inquired about the ministry's response plan to the RMA, and they replied that response would be possible after the draft bill was made public," adding, "I think this answer clearly shows the ministry's trade response capability." Lawmaker Hong added, "Shouldn't efforts be made to reflect Korea's position before the draft is prepared?" Minister Lee said, "The European trade and diplomatic organizations are monitoring the issue," and "We are making efforts to approach the bill."

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy responding
(Seoul=Yonhap News) Reporter Ha Sa-heon = Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is answering questions from lawmakers at the National Assembly’s Trade, Industry, Energy, Small and Medium Business Committee hearing held at the National Assembly in Yeouido, Seoul on the morning of October 4, 2022. 2022.10.4 [Photo by the National Assembly Press Photographers Group]
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Reaffirmation of YTN Share Sale Intention

During the audit, the government's policy to sell YTN shares was also reaffirmed. Democratic Party lawmaker Kim Hoe-jae said, "(KEPCO KDN's) sale of YTN shares can only be seen as privatization and media control," and urged, "The plan to sell KEPCO KDN's YTN shares should be withdrawn."

In response, Minister Lee said, "We are not considering reviewing the sale plan from scratch," and added, "It is inappropriate to link KEPCO KDN's sale of YTN shares to media control or privatization." He continued, "We are approaching this solely from the perspective of public institution innovation," and added, "KEPCO KDN has held YTN shares for 25 years, but the profitability was not good."

Minister Lee also emphasized that the Electricity Fund should be used for its original purpose. The Electricity Fund is a quasi-tax fund raised by a 3.7% electricity rate. The Moon Jae-in administration used the Electricity Fund for expanding renewable energy, compensating costs related to the nuclear phase-out policy, and establishing Korea Energy Engineering University (KEPCO University). There have been continuous criticisms that the Electricity Fund was used in ways inconsistent with its intended purpose of 'power industry development and supply stability.'

Minister Lee said, "The Electricity Fund has become quite vulnerable due to the promotion of renewable energy distribution," adding, "Expenditures exceed revenues." He continued, "The Electricity Fund should be used for its original purpose," and said, "I believe the fund base should be strengthened going forward."