“So, Chairman Chung, thank you again for choosing the United States. We will not let you down.” Those were the words addressed to Hyundai boss Euisun Chung by Joe Biden during a visit to Seoul in May, as the US president revelled in a fresh $10bn investment in US manufacturing by the Korean auto giant.
So there was consternation in the Korean capital last month when Biden signed into law a provision of his landmark Inflation Reduction Act that eliminates subsidies for electric vehicles assembled outside of North America.
Hyundai’s $5.5bn EV plant in the US state of Georgia, announced during Biden’s visit, is not scheduled to begin production until 2025 — making it ineligible for subsidies until then, making US rivals more competitive in the period.