S. KOREA ON INFLATION REDUCTION ACT

[Anchor Lead]

A Korean delegation has arrived in Washington to discuss the US Inflation Reduction Act, which would get rid of tax incentives given to electric vehicles assembled in Korea. Korea's ambassador to the U.S. Cho Tae-yong said both sides will hold discussions to devise solutions. He pledged to work hard to resolve the issue.

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A group of director-level officials from the industry, finance and foreign affairs ministries arrived in Washington. Seoul is responding to Washington's Inflation Reduction Act that excludes electric vehicles assembled outside North America from tax incentives. The act is expected to deal a harsh blow to Korea's EV exports.

[Soundbite] Ahn Sung-il(Trade Ministry) : "We will deliver Korean carmakers’ stances and the government’s concerns. The situation is difficult. But we will do our best."

Ambassador to the U.S. Cho Tae-yong said the two countries have agreed to hold discussions and devise solutions to the looming problem. The delegation is expected to raise the issue of the axed incentives for EVs and demand the U.S. respect Korea's status as an FTA partner. The act received US congressional approval amid overwhelming support from the US Democratic Party. The delegation plans to contact and persuade related congressional committees, the White House and the Treasury Department.

[Soundbite] Cho Tae-yong(S. Korean Ambassador to U.S.) : "This issue will require huge efforts to devise solutions, as it was confirmed as an act with congressional approval. We will work to minimize damage on Korean electric vehicles through active discussions with U.S. officials and lawmakers."

After the delegation's working-level talks, Seoul's trade minister will visit Washington next week to hold high-level negotiations. Critics say Seoul is belatedly responding to the act that already went into effect. But the government vowed to have the U.S. revise the act and protect Korea's national interest.