South Korea seeks 3-year grace period on U.S. EV tax incentive law
By Heekyong Yang
SEOUL, Nov 4 (Reuters) - South Korea is seeking a
three-year grace period on the U.S. Inflation Act in order to
enable Korean automakers to keep receiving electric vehicle (EV)
incentives in the United States, Seoul's foreign ministry said
on Friday.
U.S. President Joe Biden sign into law in August a $430
billion bill, which among other measures, excludes Hyundai Motor
Co (HYMTF) and its affiliate Kia Corp (KIMTF) from
federal tax credits because they don't yet make EVs in North
America.
The foreign ministry said it had proposed that the United
States offer federal EV tax credit for those companies with
planned U.S investments.
In May, Hyundai Motor Group said it would invest more
than $10 billion in the United States by 2025 to strengthen
collaboration with U.S. firms in advanced technology, such as
robotics, autonomous driving and artificial intelligence among
other fields.
The U.S. Treasury Department and the Internal Revenue
Service started seeking public comment on the new law last
month.
South Korea reiterated its position that the new law may
violate trade norms such as the U.S.-South Korea free trade
agreement and World Trade Organization agreements.
Hyundai Motor Group broke ground on a $5.54 billion EV and
battery plant in the United States late last month, aiming to
begin commercial production in the first half of 2025 with an
annual capacity of 300,000 units.
(Reporting by Heekyong Yang; Editing by Kenneth Maxwell)
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