Choo asks Yellen to consider Korea's requests for IRA

In meeting with Chinese counterpart, finance minister calls for close economic cooperation

Finance Minister Choo Kyung-ho (right) shakes hands with US Treasury Secretary Janet Yellen before holding talks at the G-20 Finance Ministers and Central Bank Governors Meeting at the Mahatma Mandir Convention & Exhibition Center in Gandhinagar, India on Monday. (Finance Ministry)

In his meeting with Yellen, Choo delivered his gratitude for the US' efforts to communicate with Korea regarding the Inflation Reduction Act and the CHIPS and Science Act, while requesting the US government’s attention to Korean companies with business in the country.

The IRA gives a tax credit to buyers of electric or fuel cell vehicles assembled in North America. To qualify for the tax credit, EVs must have batteries that contain at least 40 percent critical materials extracted or processed from the US or countries that have free trade agreements with the US. The CHIPS Act offers subsidies and tax incentives to foreign chipmakers for setting up factories in the US.

Both acts were enacted to move the global supply chain away from China and strengthen US-led manufacturing. Korea is paying keen attention to the acts as they affect Korean companies with their business spanning across the US.

Choo also spoke to Yellen about her recent visit to China. Yellen visited Beijing earlier this month to hold talks with top economic policymakers in the country to improve strained ties between the world's two biggest economies.

Yellen said that her four-day visit to China "served as a step forward in putting our relationship on surer footing and establishing a resilient and productive channel of communication,” at a press conference held ahead of the G-20 meeting Sunday.

Choo also stressed that recently improved Korea-Japan relations can contribute to further trilateral economic cooperation between Korea, the US and Japan.

Economic ties between Korea and Japan have been improving in recent months, including Japan restoring Korea to its exports "whitelist" of trusted trading partners, effectively bringing an end to a trade dispute that had lasted for four years.

Amid Russia's ongoing war in Ukraine, Choo said Korea will continue to discuss economic sanctions imposed against Russia with the US.

Finance Minister Choo Kyung-ho (left) shakes hands with Chinese Finance Minister Liu Kun before meeting at the G-20 Finance Ministers and Central Bank Governors Meeting held at the Mahatma Mandir Convention & Exhibition Center in Gandhinagar, India on Monday. (Finance Ministry)

At the G-20 event, Choo also met with his Chinese counterpart, Liu Kun. It is the first time since 2019 for the two top financial policymakers of the respective countries to hold a one-on-one, face-to-face meeting.

At the meeting, Choo underscored the importance of the two countries' partnership in terms of trade and investments, and reiterated that both countries should maintain a cooperative relationship based on “mutual respect, reciprocity and common interests,” according to the Finance Ministry.

The two finance ministers shared thoughts on the exchange of human resources and cooperation in supply chains, agreeing to expand communication and cooperation with each other through diverse channels.

By Im Eun-byel(silverstar@heraldcorp.com)