Deputy Foreign Minister Meets US Officials to Discuss IRA and Supply Chains

[Asia Economy Reporter Choi Dae-yeol] Lee Do-hoon, the 2nd Vice Minister of Foreign Affairs, met with Mike Pyle, Deputy Assistant to the U.S. National Security Council (NSC) for International Economics, who is visiting Korea, on the 2nd.

They exchanged views on major economic issues between the two countries, including the U.S. Inflation Reduction Act (IRA), cooperation on critical minerals, semiconductors, and battery supply chains. Vice Minister Lee emphasized that Korean companies are being discriminated against due to the Inflation Reduction Act. Deputy Assistant Pyle responded that efforts are being made to address Korea's concerns. He added that he hopes the law will become an opportunity for Korea's related industries and Korea-U.S. supply chain cooperation.

The U.S. Department of the Treasury is expected to announce provisional guidance (sub-regulations) on critical minerals and battery components for the IRA electric vehicle tax credit in March. The Korean government is persuading that the countries from which Korean companies procure minerals be included in the origin of critical minerals within the guidance.

Both sides agreed to build a diversified and resilient global supply chain ecosystem based on the Korea-U.S. alliance and the Korea-U.S. Free Trade Agreement (FTA). They also agreed to cooperate to strengthen national and economic security.