October 6, 2022

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Sept 21 (Reuters) – The United States said on Wednesday its commerce secretary and South Korea’s trade minister had exchanged “candid views” on pending legislation in Seoul on network fees for foreign content providers and credits for electric vehicles Washington during the meeting.

The Inflation Reduction Act, signed into law by President Joe Biden last month, eliminates federal tax breaks for electric vehicles made outside North America, meaning companies including Hyundai ( 005380.KS ) and its subsidiary Kia Corp ( 000270.KS ) will no longer be qualified for such subsidies.

South Korean President Yoon Suk-yeol arrived on his first official trip to the United States this week, but tensions threatened to derail a recent show of alliance strength with Washington.

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In South Korea, there is legislative pressure to force Netflix ( NFLX.O ) and Alphabet’s Google ( GOOGL.O ) to pay local network fees.

While the US Commerce Department’s reading said Secretary Gina Raimondo and South Korean President Lee Chang-yang reaffirmed the importance of bilateral economic relations, it also hinted at tensions.

The two “exchanged candid views on US concerns regarding South Korea’s pending legislation to impose network usage fees on foreign content providers and South Korea’s concerns regarding tax breaks for electric vehicles,” it said.

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Reporting by Costas Pitas in Los Angeles; Editing by Sandra Mahler

Our standards: Thomson Reuters Trust Principles.

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