US, South Korea exchange ‘frank views’ amid EV subsidies dispute

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Tensions on economic issues have increased with the first visit of South Korean President Yoon Suk-yol to the US.

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The United States said on Wednesday that its commerce secretary and South Korea’s trade minister exchanged “clear views” on Seoul’s pending legislation on network usage charges on foreign content providers and Washington’s electric vehicle credits during a meeting. .

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The Inflation Reduction Act law, signed by President Joe Biden last month, eliminates federal tax credits for electric vehicles made outside North America, meaning companies including Hyundai and its affiliate Kia Corp will no longer be eligible for such subsidies. .

South Korean President Yoon Suk-yol arrived this week for his first official visit to the US, but tensions threaten to disrupt a recent show of coalition strength with Washington.

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In South Korea, there is a legislative push for Netflix and Alphabet to make Google pay local network fees.

While the US Commerce Department’s readout said Secretary Gina Raimondo and South Korea’s Lee Chang-yang reaffirmed the importance of bilateral economic ties, it also indicated tensions.

The pair “exchanged candid views on US concerns regarding South Korea’s pending legislation to impose network usage fees on foreign content providers and South Korea’s concerns regarding the electric vehicle tax credit,” it said.

Credit: www.aljazeera.com /

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