U.S. and S.Korea exchange ‘frank views’ on vehicle credits, network fees

Sept 21 (Reuters) – The United States said on Wednesday its commerce secretary and South Korea’s trade minister exchanged “candid views” during a meeting on Seoul’s pending legislation on network usage fees for foreign content providers and Washington’s electric vehicle credits.

The Inflation Reduction Act, signed by President Joe Biden last month, eliminates federal tax credits for electric vehicles made outside North America, meaning companies including Hyundai ( 005380.KS ) and its affiliate Kia Corp ( 000270.KS ) will no longer be eligible. For subsidies.

South Korean President Yoon Suk-yeol made his first official visit to the United States this week, but tensions threaten to derail the alliance’s recent show of strength with Washington.

In South Korea, the likes of Netflix ( NFLX.O ) and Alphabet’s Google ( GOOGL.O ) are under legal pressure to pay local network fees.

The US Commerce Department’s readout said Secretary Gina Raimondo and South Korea’s Lee Chang-yang reiterated the importance of bilateral economic ties, also hinting at tensions.

The pair “openly exchanged views on US concerns about South Korea’s pending legislation to impose network usage fees on foreign content providers and South Korea’s concerns about electric vehicle tax credits,” it said.

Reporting by Costas Pitas in Los Angeles; Editing by Sandra Maller

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