Meeting at the Swiss Davos Forum
[Asia Economy Reporter Choi Seoyoon] Foreign Minister Park Jin met with the Governor of Georgia, USA, at the Swiss Davos Forum and requested cooperation to alleviate concerns of Korean companies regarding the Inflation Reduction Act (IRA).
The Ministry of Foreign Affairs announced on the 20th that Minister Park shared recent developments related to the Inflation Reduction Act with Governor Brian Kemp of Georgia on the 18th.
Minister Park requested the state government's attention and cooperation to resolve concerns of Korean companies investing in Georgia and the United States.
In response, Governor Kemp stated that he is well aware of the concerns of Korean companies. The Ministry of Foreign Affairs conveyed that Governor Kemp pledged to make every possible effort at the state government level to ensure that Korean companies in Georgia receive fair treatment.
The Inflation Reduction Act grants tax credit benefits only to electric vehicles that are finally assembled in the North American region. Hyundai and Kia vehicles, which are entirely manufactured in Korea, were excluded from the benefits.
Hyundai plans to build an electric vehicle-only factory in Georgia. The Korean government and Hyundai submitted a request to the U.S. government to postpone the enforcement of the relevant Inflation Reduction Act provisions for three years until the factory is completed in 2025.
Minister Park asked Georgia to play a constructive role as a base for Korean companies' investment in the U.S. while Korea and the U.S. strengthen all-around cooperation in security, economy, and technology, and requested special attention for smooth corporate activities.
Governor Kemp also stated that the state government will spare no support to ensure the smooth activities of Korean companies.
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