Hyundai Motor and Kia receive more than 400 billion won in US eco-friendly car subsidies in the first half of the year

[비즈니스포스트] Hyundai and Kia received more than 400 billion won in subsidies from the sale of eco-friendly cars in the United States during the first half of this year, it was found.

According to data presented by the Korea Automobile Manufacturers Association by Ja-geun Koo, People’s Power office, on the 27th, the subsidy for eco-friendly cars received by Hyundai Motor and Kia from the United States in the first half this year amounts to $316 million.

If the won/dollar exchange rate is applied to 1,300 won, approximately 411.4 billion has been won.

However, Hyundai Motor Company and Kia Motors will not be able to receive subsidies due to the implementation of the Inflation Reduction Act (IRA) in the United States.

The Inflation Relief Act applies the criteria for a subsidy for eco-friendly cars to finished cars assembled in North America, so Hyundai and Kia, which currently export eco-friendly cars to’ the United States, exempt them from subsidies.

Until President Joe Biden signed the Inflation Reduction Act on August 16, the US government has provided subsidies worth $7,500 (about 10 million won) per eco-friendly vehicle, such as electric vehicles and plug-in hybrids. in (PHEVs).

In particular, 41,000 vehicles were exported during the first half of 2022 alone. It accounts for 10% of all motor vehicles exported to the United States during the same period.

If you look at the share of auto exports to the United States from domestic automakers including internal combustion engines, electric vehicles increased by 6.2 percentage points from 3.8% in 2021 to 10% in the first half of this year.

Representative Ja-geun Koo said, “This is a clear violation of the WTO agreement and the Korea-US free trade agreement.” “The Ministry of Commerce should work to resolve the issue from a mutually beneficial perspective between the two countries. ,” he urged. Reporter Eun-pa Jang