South Korean electric vehicle(EV) makers are on high alert over a proposed bill in France emulating the U.S. Inflation Reduction Act.

According to industry insiders on Tuesday, the Korea International Trade Association and Korea Business Association Europe submitted a letter of opinion to the French government last Friday expressing concern over the draft bill that may well exclude South Korean EVs from tax credits.

The letter said that regulations to reform EV subsidies could potentially violate the South Korea-EU free trade agreement prohibiting discrimination.

The current draft of the new bill outlining subsidies for EV buyers in France is based on the carbon footprint of the vehicle's entire production process, from manufacturing to maritime transportation, and subsidies are granted only vehicles with totals below a certain threshold.

The bill, which is set to be implemented next year following a six-month grace period from January, is stoking concerns in South Korea that the concept behind the measure may permeate to other European nations.