Lee Jae-sang, 2022-10-18

strongly supported Lee Jae-myoung’s efforts to send the letter, requesting the revision of the Inflation Reduction Act (IRA) to Biden and Pelosi. Citizen groups criticized Yoon Seok-youl for treating international diplomatic relations as child’s play.

10.18.  Before the National Assembly, News Repository News

Citizen groups (led by Chung Dae-taek) announced at the press conference before the National Assembly that they supported Lee Jae-myung, chairman of the Minjoo Party, in sending the letter to President Joe Biden and House Speaker Nancy Pelosi to demand a revision of the IRA.

In the press conference on the same day, the Again Candlelight Rally in South Korea said:“We strongly support Lee Jae-myong, chairman of the Minjoo Party, in sending a letter to Biden and Pelosi to revise the IRA, and condemn Yoon Seok-youl for treating international relations and diplomacy as Child’ Play.”

The Inflation Reduction Act was signed into law by President Joe Biden on August 16 to pursue “stability for the life of the American people” during global inflation. It was originally planned to be $3.5 trillion in the Build Back Better Act (BBBA). He also said: “In the act, the U.S. government gives a tax credit of $4,000 per vehicle to domestic consumers who buy used electric vehicles and a tax credit of $7,500 per vehicle to domestic consumers who buy new electric vehicles. According to these two subsidies, electric vehicles must be assembled in North America and a certain percentage of battery materials or parts must be purchased from countries that have signed Free Trade Agreements (FTA) with the U.S. They will have a huge impact on our country’s electric vehicle industry.” The act, aiming to cut China out of the supply chain of the U.S. electric vehicle industry, dealt a blow to South Korea’s electric vehicle and battery industry. Hyundai Motor Group does not have an electric car plant in the United States, and the main Korean models sold in the United States have similar performance. This will result in the Korean car being $7,500 more expensive than other electric cars, significantly reducing the price advantage of Korean cars.

The Again Candlelight Rally claimed that a more serious problem is that power batteries, the core technology of Korean new energy vehicles, must be produced in the United States or countries that have signed a Free Trade Agreement (FTA) with the United States. Battery modules made in China will be completely banned from 2024. At present, most of the mineral module batteries of Korean auto companies come from China. Korean power battery companies are highly willing to use Chinese raw materials. According to the Korea International Trade Association, the import of lithium hydroxide, the core raw material of power batteries from China, increased by 404% in the first half of this year. This means that 83.2 percent of South Korea’s lithium hydroxide comes from China. At present, our government has not taken any measures or requested the United States to amend the IRA discrimination clauses. As a result, the public is paying attention to the situation, and many people in the country believe that the U.S. is undermining trust between Korea and the U.S. They expressed dissatisfaction with the South Korean government for not taking any countermeasures. In response, Lee Jae-myung, chairman of the Minjoo Party, sent a letter to the U.S. President Joe Biden and his group on Oct. 1, urging an early revision of the Inflation Reduction Act. The Minjoo Party sent a letter, demonstrating the U.S.’ discrimination clauses against Korean electric vehicles, to 20 U.S. officials, including President Joe Biden and House Speaker Nancy Pelosi, and asked the U.S. to find a solution to the discrimination against Korean electric vehicles.

After introducing the contents of Lee’s letter, the Again Candlelight Rally said: “The United States unilaterally violates the Korea-U.S. Free Trade Agreement and the principle of national treatment and most favored nation treatment of the World Trade Organization. Our country should show our opposition and dissatisfaction. If the south Korean government does not oppose the act now, Similar legislation will also come endlessly in the future, which will be a huge blow to the export-oriented South Korean economy.” We agreed that, if necessary, we should cooperate with countries and regions in a similar situation, such as the European Union, and take the case to the World Trade Organization. The South Korean government and people should make concerted efforts to respond to the U.S.’ efforts of regarding South Korea as a hostage for its own interests, especially to hamper the development of China.