U.S. Vice President Kamala Harris said that close consultation with Seoul will continue as the two sides seek to address concerns over the application of the U.S. Inflation Reduction Act(IRA).

According to a briefing by vice foreign minister Cho Hyun-dong in Tokyo on Tuesday, the U.S. vice president met with South Korean Prime Minister Han Duck-soo that day prior to attending the state funeral of former Japanese Prime Minister Shinzo Abe.

Cho said that after the prime minister conveyed Seoul’s concerns over what it perceives to be discriminatory exclusions in the IRA, Harris said the U.S. is well aware of Seoul's concerns on the EV subsidies law.

The prime minister also proposed that the two sides continue talks to come up with an adequate solution in line with the opinion shared between President Yoon Suk Yeol and U.S. President Biden when they met in New York last week.

A White House read-out of the meeting said, in part, "The Vice President underscored that she understood [South Korea’s] concerns regarding the Act’s tax incentives for electric vehicles, and they pledged to continue to consult as the law is implemented." 

The disputed U.S. law excludes electric vehicles assembled outside North America from tax incentives and imposes additional restrictions related to battery components and production.