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South Korean President Yoon Suk-yeol will be on his first official trip to the U.S. where he will meet President Joe Biden amid Seoul’s dismay over the new U.S. subsidies law for electric vehicle makers.
What Happened: Yoon, who was in London for Queen Elizabeth‘s funeral, departed for New York late on Monday to attend the U.N. General Assembly, where he will also meet President Biden, Reuters reported.
Both leaders are expected to discuss Kim Jong-un‘s North Korea’s growing weapons threats and rising concerns in Seoul over the Inflation Reduction Act (IRA), signed by the U.S. President last month.
Yoon will fly to Canada on Thursday for the last leg of his trip before returning home on Saturday.
Why It’s Important: The new U.S. law introduced in August eliminates federal tax credits for EV makers outside North America, such as Tesla Inc TSLA rival Hyundai Motor Co HYMTF, and its affiliate Kia Corp KIMTF. South Korean government officials have majorly criticized the law and argue that this comes as a betrayal of Biden’s promise to strengthen bilateral economic ties after Korea-based companies agreed to make substantial investments and build production facilities in America.
On Tuesday, South Korean Prime Minister Han Duck-soo also said the IRA “seems to be a violation of the Free Trade Agreement.”
Meanwhile, Yoon’s government has asked the Biden administration to postpone the new rules until Hyundai sets up its Georgia factory by 2025. It is expected that the South Korean president is likely to reiterate the same request in a meeting with Biden.
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Image and article originally from www.benzinga.com. Read the original article here.