Trump's second term may adjust CHIPS Act and IRA, highlighting Korea's leadership vacuum

[Anchor]

The launch of the second Trump administration in the United States is just a month away.

With strong trade pressures and the possibility of significant adjustments to the previous administration's Inflation Reduction Act (IRA), concerns are growing among South Korean entrepreneurs.

Kye Hyun-woo reports.

[Report]

LG Energy Solution and SK On, which produce electric vehicle batteries, received tax credits worth over 500 billion won from their U.S. factories in the third quarter alone.

This is due to the tax credit benefits from the Biden administration's Inflation Reduction Act (IRA), and without it, they would have essentially been in the red.

However, the Trump administration, which will take office in a month, is hinting at the repeal of the IRA.

[Donald Trump/President-elect of the U.S./Last October: "We will end the green new scam once and for all."]

The future of Samsung Electronics' promised subsidy of 6.4 billion dollars for investments in its Taylor, Texas plant has also become uncertain.

This is because Trump has stated he will revise the semiconductor support law, known as the CHIPS Act, which is the basis for the subsidies.

At a related seminar held today (12.16), it was pointed out that strong tariff policies and the repeal of the IRA could render the investment performance of our companies in the U.S. during the Biden administration meaningless.

[Steven Bown/Acting U.S. Trade Representative under Trump’s first term: "The voters now reaffirmed their support for the president, which puts him in a stronger position politically. I think you can anticipate a very aggressive trade policy from the president."]

Trump has also indicated the possibility of imposing a 'universal tariff' of 10-20% on all imports.

This is bad news for our exports, which have seen a decline in growth since August.

[Joo Won/Head of Economic Research Department, Hyundai Research Institute: "There are often cases where issues are resolved through dialogue between presidents, especially trade issues. However, given the uncertain political situation, the likelihood of unsmooth trade negotiations with the U.S. has increased."]

In particular, if the Trump administration applies strong pressure during negotiations, an 'immediate response' may be necessary, and our leadership vacuum could become more pronounced.

This is KBS News, Kye Hyun-woo.