S Korea-France-supply chains

▲ This APF file photo shows French Minister for the Economy and Finances Bruno Le Maire (L) speaking to reporters after the presentation of a draft law on green industry in Paris on May 16, 2023. (PHOTO NOT FOR SALE) (Yonhap)

S Korea-France-supply chains

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

SEOUL, June 8 (Yonhap) -- 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 (US$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.


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