US willing to discuss tax breaks for electric vehicles with South Korea

US President Joe Biden expressed willingness to negotiate with South Korea over a law that provides tax breaks only to electric vehicles assembled in North America, officials said on Wednesday.

A South Korean presidential official said President Yoon Suk-yeol received a letter from his US counterpart, who expressed his willingness to continue frank and open discussions about the Inflation Reduction Act (IRA) with Seoul, according to Yonhap News Agency.

The new US law eliminates taxes on electric vehicles assembled in North America, but it excludes South Korean automakers, which Seoul claims will have an impact on the industry.

Biden stated that he is aware of his South Korean counterpart's concerns.

"President Biden's letter was written based on the two leaders' discussions on the IRA during their multiple meetings in New York and London last month," the media outlet quoted the official as saying.

"We assess that by once again expressing his understanding of our concerns through a personally signed letter and by clearly stating the positive role of South Korean businesses, President Biden expressed his commitment to President Yoon to showing consideration to South Korean businesses in the future," the official added.