S. Korean trade chief, U.S. senator discuss economic security, key industries

South Korea’s Trade Minister Ahn Duk-geun met with Sen. Todd Young (R-IN) on Wednesday and discussed ways to enhance bilateral ties regarding advanced industries and overall economic security, Ahn’s office said.

During the meeting in Seoul, Ahn asked for Washington’s active support for South Korean firms operating in the U.S., particularly as an increasing number of Korean companies are making investments in Young’s state of Indiana.

Last month, Samsung SDI Co. announced a plan to build a second battery manufacturing facility with Stellantis N.V. in the U.S., in addition to the ongoing project for their first plant in Indiana.

Samsung SDI also said earlier that it will build an electric vehicle battery factory in Indiana in a joint venture with General Motors Co.

The two sides also discussed pending issues of the U.S. Inflation Reduction Act, the Chips and Science Act and the regulation of semiconductor exports to China amid concerns over the regulations’ impact on South Korean businesses, the ministry said.

The IRA offers tax credits of up to US$7,500 to each buyer of a new electric vehicle assembled only in North America and with batteries made of a certain amount of critical minerals produced in the region.

Under the Chips Act, foreign chipmakers can receive subsidies totaling US$52.7 billion and tax incentives for setting up production facilities in the U.S., though the act came with strings attached.

On Tuesday, President Yoon Suk Yeol met with Young for talks on ways to develop bilateral ties.

Yoon requested the senator’s continued attention to the smooth execution of investment plans by South Korean companies and voiced hope for bipartisan support from the U.S. Congress for the stable development of trilateral cooperation among South Korea, the U.S. and Japan.