South Korea's Head Of Industry Discusses Energy Security With US Delegations

UNSPLASH/Daniel Bernard ILLUSTRATION

JAKARTA - South Korea's head of industry met with the delegation of the United States Congress and discussed ways to increase bilateral cooperation in the field of nuclear, natural gas and industrial power plants as a whole, the South Korean Ministry of Industry said.

The bipartisan delegation involved the Chairman of the Subcommittee on Energy, Climate and Network Security Jeff Duncan, as well as four other members - Tim Walberg, banyak Lesko, Randy Weber and Scott Peters, according to the Ministry of Trade, Industry and Energy.

As reported by ANTARA, Friday, June 30, during the meeting, Minister Lee Chang-who asked for US Congress' support for stronger relations between the two countries regarding the development of small modular reactors and in the wider field of nuclear power plants.

Discussions also include ways to ensure a stable supply of natural gas, the ministry said.

The US is the third-largest exporter of liquefied natural gas in the world after Australia and Qatar, and South Korea is pushing for the diversification of gas import channels, partly based on long-term contracts for US gas.

Lee also asked for the support of the US Congress to encourage the two countries to strengthen supply chain cooperation amid global uncertainty.

He noted that Seoul and Washington have maintained consultations on the Inflation Reduction Act (IRA), the CHIPS and Science Act and other major issues on industry, the ministry said.

IRA offers tax credit of up to $7,500 (approximately IDR 112.9 million) to every buyer of a new electric vehicle assembled in North America and with batteries made of a number of essential minerals produced in the region.

Under the Chips Act, foreign chip manufacturers can receive subsidies of US$52.7 billion (around Rp793.9 trillion) and tax incentives to set up production facilities in the US, although the law is accompanied by a number of requirements.