Industry minister Lee Chang-yang said on Monday that the government will actively review whether to file a complaint with the World Trade Organization(WTO) over a new U.S. law that excludes electric vehicles(EVs) built outside of North America from tax breaks.

The minister made the remarks during a parliamentary session when asked about the U.S. Inflation Reduction Act, which calls for expanded tax subsidies for electric vehicle purchases, but only for EVs assembled in North America, a move that is expected to have significant implications on the sales of South Korean-made EVs in the U.S.

Minister Lee said that the government is concerned about the act, adding that as soon as the law was passed, the government conveyed to the U.S. Trade Representative its concern that the law would violate WTO and bilateral free trade agreement rules. 

The minister continued that South Korea is also conveying its concerns through various other channels, including the foreign minister.

Lee said the government will send a trade official to the U.S. this week or early next week to look into the U.S.' intentions.

The minister said that trade minister Ahn Duk-geun will discuss the matter with U.S. officials during his trip to Washington next week to attend a meeting on the Indo-Pacific Economic Framework.