U.S., South Korea are working to 'rectify the problems' on EV subsidies, South Korea trade minister says

South Korean and U.S. officials are moving toward a "concrete proposal" to resoluteness their differences implicit electrical conveyance subsidies, South Korea's commercialized curate told CNBC.

"We've established a circumstantial dialog transmission to code this peculiar issue, and we are gladsome that the U.S. authorities wholeheartedly engaged with america to rectify the problems," Ahn Duk-geun told CNBC's Chery Kang connected Wednesday.

He was referring to concerns implicit EV subsidies that would enactment South Korean automakers astatine a disadvantage, with immoderate South Korean officials calling the determination a "betrayal" of the bilateral spot betwixt the 2 countries.

The $430 cardinal clime and vigor bill, oregon the Inflation Reduction Act (IRA), was signed into instrumentality by President Joe Biden successful mid-August.

It includes national taxation credits offering consumers up to $7,500 successful recognition for those purchasing caller electrical vehicles assembled successful the U.S. – and those purchasing cars made by overseas carmakers similar Kia and Hyundai volition not beryllium eligible.

Hyundai is the second-biggest EV sellers successful the U.S. aft Tesla.

"We are disappointed to spot successful peculiar this proviso [was] included successful the IRA without overmuch anterior consultations," Ahn said, adding the South Korean authorities is preparing for "all possibilities," including proposing legislative amendments to Washington.

His remark were not arsenic beardown arsenic the heated rhetoric from Seoul officials successful caller weeks.

U.S. Vice President Kamala Harris was successful Seoul connected Thursday wherever she met South Korea's President Yoon Seok-yeol, to sermon the concerns faced by South Korean automakers.

A White House readout pursuing the 2 leaders' gathering said the U.S. vice president understood the raised concerns and that some pledged to "continue to consult" connected the matter.

Yoon's bureau cited Harris arsenic saying she would "look into ways to relieve South Korea's concerns successful the process of enforcing the law," according to a statement connected the aforesaid meeting.

South Korea's manufacture ministry confirmed with CNBC that Seoul volition beryllium reviewing whether to record a ceremonial ailment to the WTO implicit specified concerns.

Last week, the Korean Confederation of Trade Unions, which represents workers from South Korean home companies including Kia and Hyundai, slammed the U.S. measures arsenic "unilateral" and "U.S.-centric," and said they could worsen the uncertainties surrounding the existent authorities of the planetary economy.

Ahn noted that South Korea's export-reliant system is so "experiencing the decoupling phenomenon" arsenic a effect of heightened U.S.-China commercialized tensions. He did not elaborate further.

South Korea is facing a continued commercialized shortage occupation owed to a emergence successful vigor prices, and that Beijing holds a strategically important relation for the country, helium added.

"China is inactive [a] precise important trading spouse of Korea," Ahn said.

"I deliberation the stabilization of this commercialized narration volition play a precise important relation to unafraid the planetary proviso successful these turbulent and uncertain economical circumstances."