Hyundai Motor Group Chairman Chung Eui-sun recently met with Jose Fernandez, the U.S. Undersecretary of State for Economic Growth, Energy and Environment.
According to the business community on Jan. 11, Chairman Chung had a discussion with Vice Minister Fernandez about the Inflation Reduction Act (IRA) at a hotel in Seoul the previous day.
It seems that they shared various opinions in areas such as electrification, future mobility, and global supply chains as well as solutions to discrimination in Korean electric vehicles.
In particular, Chairman Chung reportedly stressed the need for flexible measures for companies that have decided to invest in the U.S.
Vice Minister Fernandez tweeted, "I met with a Hyundai Motor executive. South Korea is developing a sustainable vision for the recovery of the global electric vehicle battery supply chain and it is critical to the economic security of both countries."
During his visit to Korea, Vice Minister Fernandez is expected to meet with executives of major semiconductor and battery companies to discuss joint technology development, research, and supply chain recovery.
The IRA restricts subsidies for electric vehicles to electric vehicles finally assembled in North America. Hyundai's Ioniq 5 and Kia's EV6 will not receive tax deductions of up to $7,500 (about 10 million won) because they do not meet these regulations.
The South Korean government earlier asked for a three-year grace period for the enforcement of the IRA law until Hyundai Motor's local production of electric vehicles is possible. Hyundai Motor plans to complete its Georgia electric vehicle plant in the first half of 2025 and start production there.