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S. Korea, France discuss cooperation on green industry, supply chains

June 8, 2023 - 21:24 By Yonhap
Hyundai Motor's Ioniq 5 and an example of the Indonesian traditional dyeing technique known as batik (From the websites of Hyundai Motor Group and UNESCO)

South Korea on Thursday called on France not to discriminate against foreign carmakers under its recent bill to boost green industry sectors by offering a tax credit for eco-friendly investments, the industry ministry said Thursday.

Last month, the French government presented a green industry bill with a budget of 500 million euros ($535 million) annually to offer tax credits and other benefits for electric vehicles (EVs) and other green fields in response to the United States' Inflation Reduction Act (IRA).

During the bilateral industry cooperation commission meeting Thursday, the Seoul government stressed that the new bill should not be discriminatory, as the IRA has been a major concern for South Korean carmakers and other companies because tax credits are available for buyers of EVs assembled only in North America.

The two nations also shared their policy measures on and the current status of supply chains regarding semiconductors, batteries and key minerals, and discussed how to work together to ensure stable supply chains.

They agreed to expand bilateral research and development projects in a range of advanced sectors, such as autonomous driving, aerospace and digital transition, according to the ministry. (Yonhap)