U.S. and S.Korea exchange ‘frank views’ on vehicle credits, network fees

Sept 21 (Reuters) – The United States said on Wednesday its commerce ministers and South Korean trade ministers exchanged “candid” in a meeting on pending legislation in Seoul on internet usage fees for foreign content providers and electric vehicle credits in Washington. Opinion”.

The Reducing Inflation Act, signed into law by President Joe Biden last month, eliminated federal tax credits for electric vehicles produced outside North America, meaning Hyundai (005380.KS) and its affiliate Kia Corp (000270.KS) ) will no longer be eligible for such subsidies.

South Korean President Yoon Se-yeol arrived in the U.S. this week for his first official visit, but tensions threaten to undermine the recent show of alliance strength with Washington.

In South Korea, legislation pushed companies such as Netflix (NFLX.O) and Alphabet’s Google (GOOGL.O) to pay for local networks.

While the Commerce Department report said Secretary Gina Raimondo and South Korea’s Changyang Lee reiterated the importance of the bilateral economic relationship, it also hinted at tensions.

The two “exchanged candid views on U.S. concerns over South Korea’s impending legislation to impose network usage fees on foreign content providers and South Korea’s concerns over electric vehicle tax credits,” it said.

Reporting by Costa Spitas in Los Angeles; Editing by Sandra Mahler

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