South Korea will make efforts to avoid the potential fallout from US President Donald Trump's recently signed executive order calling for the possible termination of "unfair" subsidies on electric vehicles, the industry ministry said Thursday.
"The government will continue to closely monitor trends in the US and communicate closely with businesses to create opportunities even amid challenges," a senior ministry official said during a meeting with representatives from carmakers.
The meeting was organized after Trump signed an executive order titled "Unleashing American Energy," which includes eliminating the "EV mandate" and promoting consumer choice, saying it is "essential for economic growth and innovation."
Trump also called for considering the removal of EV subsidies and other "ill-conceived government-imposed market distortions," apparently referring to a tax credit given to EV buyers under the Inflation Reduction Act.
During Thursday's meeting, participants noted the US move could significantly impact South Korea's automobile industry, although the implementation of the order is expected to take some time.
They urged the government to proactively convey South Korean carmakers' position to Washington in the early stages of policymaking processes and share relevant information with the companies. (Yonhap)
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