US-Korea High-Level Economic Talks... "Request for Tax Credits and Subsidies for Korean Companies"

High-Level US-Korea Economic Talks Held in Seoul
Korean Industry Reiterates Position on US IRA and Related Issues

Kang In-seon, Deputy Minister of Foreign Affairs, and Jose Fernandez, U.S. Deputy Secretary of State for Economic Affairs, are shaking hands at the 8th Korea-U.S. Senior Economic Dialogue (SED) held at the Ministry of Foreign Affairs in Jongno-gu, Seoul, on the afternoon of the 31st.

At the Korea-US Senior Economic Dialogue (SED) held in Seoul on the 31st, South Korea conveyed concerns of Korean companies regarding the US Inflation Reduction Act (IRA) and the CHIPS Act. Emphasizing the important role Korean companies play in strengthening the US-led supply chain, they requested that corresponding benefits be provided.

The Ministry of Foreign Affairs announced that in the afternoon, Kang In-seon, the 2nd Vice Minister of Foreign Affairs, and Jose Fernandez, US Deputy Secretary of State for Economic Affairs, co-chaired the 8th Korea-US Senior Economic Dialogue at the Ministry of Foreign Affairs building in Seoul. This dialogue is a regular consultation channel where Korean and US diplomatic authorities discuss comprehensive economic cooperation.

During the meeting, cooperation measures for building resilient supply chains were discussed, including the US IRA and CHIPS Act, the Critical Minerals Security Partnership, and early warning system cooperation. First, Vice Minister Kang reiterated the position of the Korean industry regarding the provisional guidance on the IRA Foreign Entity of Concern (FEOC) announced by the US side on December 1 last year, requesting cooperation to establish reasonable implementation regulations that consider supply chain realities.

Vice Minister Kang also explained that Korean companies contribute to creating quality jobs and strengthening supply chains in the US through investments, and urged the US administration to pay special attention to ensuring that investment tax credits and subsidy benefits are promptly provided accordingly.

Both sides agreed to continue strengthening cooperation centered on the Critical Minerals Security Partnership to diversify the global supply chain of critical minerals, including graphite. They also agreed to closely consult through the Korea-US-Mongolia trilateral critical minerals consultative body launched in June last year.

Additionally, both sides discussed cooperation measures in areas such as bridging the digital divide and responding to climate change in the Indo-Pacific region, including ASEAN and Pacific island countries. Vice Minister Kang introduced the Korean government’s efforts toward carbon neutrality and clean energy transition, and requested US participation in the government’s ongoing Carbon-Free Energy Initiative.

Although there were expectations that the meeting would address the Korean government’s online platform monopoly regulation, the "Platform Fair Competition Promotion Act (Platform Act)," the Ministry of Foreign Affairs explained that this issue was not included in the formal agenda. Earlier, the US Chamber of Commerce, representing the US business community, publicly opposed this law in a statement dated the 29th (local time) signed by Charles Freeman, Vice President for Asia.