South Korea and the U.S. have decided to continue constructive discussions to address Seoul’s concerns and opinions over the exclusion of South Korean-made electric vehicles(EVs) from tax incentives under the U.S. Inflation Reduction Act(IRA).

The two sides confirmed the decision in a joint statement adopted during the seventh South Korea-U.S. Senior Economic Dialogue chaired by Second Vice Foreign Minister Lee Do-hoon and U.S. Under Secretary of State for Economic Growth Jose Fernandez in Washington on Monday.

The statement said the U.S. recognizes that South Korea’s increased investment toward the U.S.’ production of EVs and their batteries contributes to both Seoul and Washington’s economy and national security as well as their goals related to clean energy.

At the meeting, Lee explained Seoul’s stance on the IRA and asked for Washington's cooperation to ensure that the opinion is reflected in the Treasury Department’s guidance on the implementation of the law.

Fernandez, on his part, said the U.S. has sincerely taken Seoul’s worries into account from the start and is looking into them from various angles.