Biden ending South Korea visit with continued emphasis on economic, security cooperation

South Korea’s opposition to new rules governing US subsidies for electric vehicles will overshadow President Yoon Suk-yeol’s first official trip to the United States, disrupting a recent display of alliance strength with Washington.

Yoon, who was in London for the funeral of Britain’s Queen Elizabeth, departed for New York City late on Monday to attend the United Nations General Assembly (UNGA). He will fly to Canada on Thursday for the last leg of his trip before returning home on Saturday.

In New York, Yoon will hold a summit with US President Joe Biden where both leaders are expected to discuss North Korea’s growing weapons threats, and mounting concerns in South Korea over the Inflation Reduction Act (IRA), signed by Biden last month.

The new law eliminates federal tax credits for electric vehicles (EVs) made outside North America, meaning companies like Hyundai Motor Co and its affiliate Kia Corp will no longer be eligible for such subsidies.

The law has sparked complaints from government officials in Seoul, who see it as a betrayal of Biden’s promises to boost bilateral economic ties after South Korean companies agreed to make significant investments and build factories in the US.Seoul officials have said the law may violate a bilateral free trade agreement, and they have asked Washington to postpone the new rules until Hyundai completes building its Georgia factory in 2025. Yoon is likely to reiterate that request during the upcoming summit.

Yoon has also been struggling to make headway on other key diplomatic and security issues such as improving relations with Japan and enticing North Korea back to denuclearisation talks.

According to a senior official at Yoon’s office, the president also plans to use his speech to the UNGA to reiterate the need for North Korea’s denuclearisation, with Pyongyang rejecting Seoul’s recent overtures and talks remaining stalled.

A diplomatic source told the Reuters news agency that Seoul and Washington are exploring how to reopen denuclearisation talks without another major weapons test or provocation by the North.