BIDEN’S LETTER TO PRESIDENT YOON

[Anchor Lead]

U.S. President Joe Biden has sent a personal letter to President Yoon. He said he's well aware of Korea's concerns about the Inflation Reduction Act and will continue bilateral talks. Although the letter does not offer a solution, South Korea's top office says it conveys Biden's commitment.

[Pkg]

According to the nation's top office President Yoon received a letter from his American counterpart two days ago. In his letter, Biden says he's well aware of South Korea's concerns about the Inflation Reduction Act and vows to continue an honest and open discussion. The two leaders reportedly exchanged opinions on the matter yet again after Yoon's tour of the U.S. and the U.K. as well as U.S. Vice President Kamala Harris's visit to Korea.

[Soundbite] Kim Eun-hye(Senior pres. secretary for press affairs) : "The letter is believed to convey President Biden's promise to President Yoon to give consideration to Korean companies."

Seoul is focusing diplomatic efforts on having Washington modify the IRA in a way that it provides exemption to South Korea. Sources say the two sides are discussing two options: granting tax credits to EVs produced by countries that have FTAs with the U.S. on equal terms with American EVs, or extending the grace period for the law's enforcement. However experts believe finding a tangible solution before the midterm elections in the states would be difficult. Biden's letter did not provide any details, either. But Seoul's top office says the personal letter conveys Biden's commitment to working together on the law passed by the U.S. Congress. It also calls for strengthening the alliance between Seoul and Washington.

[Soundbite] Kim Eun-hye(Senior pres. secretary for press affairs) : "President Biden says he is confident that S. Korea and U.S. will play key roles in achieving their shared goals."

The nation's top office believes the letter reflects close bilateral ties for maintaining peace on the Peninsula and in Northeast Asia. It appears to send a warning message to Pyongyang over its escalating provocations. Yoon is scheduled to hold a phone meeting with Japanese Prime Minister Fumio Kishida on Thursday to discuss joint response to North Korea's threat.