Sep 21 (Reuters) – The United States said on Wednesday that its Commerce Secretary and South Korea’s Commerce Minister exchanged “candid views” during a meeting on Seoul’s pending net metering rules for Washington Foreign Content Providers and Electric Vehicle Loans.
The Cut Inflation Act, signed by President Joe Biden last month, lifts federal tax breaks for electric vehicles made outside of North America, meaning companies such as Hyundai (005380 .KS) and its subsidiary Kia Corp (000270.KS) will no longer be eligible. for such grants.
South Korean President Yoon Suk-yeol arrived this week for his first official trip to the United States, but tensions threatened to disrupt the alliance’s recent show of force with Washington.
In South Korea, there is legislative pressure to force companies like Netflix (NFLX.O) and Alphabet’s Google (GOOGL.O) to pay local network usage fees.
While a reading from the US Commerce Department said South Korean secretaries Gina Raimondo and Lee Chang-yang confirmed the importance of bilateral economic relations, they also indicated tensions.
The couple “exchanged candid views on U.S. concerns over South Korea’s pending rules to impose network fees on foreign content providers, and South Korea’s concerns over tax breaks for electric vehicles”.
Reporting by Costas Pitas in Los Angeles; Edited by Sandra Maler
Source: Reuters Trust Principles.