Seoul's top diplomat conveyed to his Washington counterpart concerns over a new US law excluding electric vehicles built outside North America from tax breaks during their recent phone conversation, a diplomatic source said Sunday.

Per the source, South Korean Foreign Minister Park Jin broached the topic in his call with US Secretary of State Antony Blinken last Friday.

The $430 billion bill, called the Inflation Reduction Act, was signed into law by US President Joe Biden last Tuesday. It calls for expanding tax subsidies for electric vehicle buyers, but only for EVs assembled in North America.

The bill also has provisions intended to bar EVs from receiving the benefits if they are equipped with batteries or battery components made using minerals from China.

Major South Korean automakers, including Hyundai Motor and Kia, have voiced concerns over the act, as they make their flagship EVs, such as the Ioniq 5 and EV6, at domestic plants and ship them overseas.

Flagship EV models for the two companies have been gaining traction in the US market in recent years.

According to the source, Park told Blinken that South Korean automakers are worried about the new law and asked for flexible implementation by the US

Following the conversation, the foreign ministry and the state department each issued a press release, but neither disclosed any discussion of the act.

But on the same day, Park told the National Assembly's committee on foreign affairs that he was aware of South Korean companies' concerns about the new US act and that he had let the US know "through various channels."

Park also noted that the Inflation Reduction Act may violate the South Korea-US Free Trade Agreement and the most-favored-nation treatment principle under the World Trade Organization agreements. (Yonhap)