▲ KAMA·JAMA Non-face-to-face Video Conference (Photo courtesy of KAMA)

Information Exchange on Carbon Neutrality Roadmap, Fuel Efficiency Regulations, and Distribution Targets
South Korea and Japan: "We will actively discuss any issues related to the US IRA."

The Korea and Japan Automobile Associations shared carbon-neutral scenarios and exchanged views on the U.S. IRA.

The Korea Automobile Manufacturers Association (KAMA) held a non-face-to-face video conference with the Japan Automobile Manufacturers Association (JAMA) on the afternoon of the 20th.

The exchange meeting focused on discussions on environmental regulations and trade issues, and KAMA and JAMA agreed to establish a forum for communication between the two associations at any time and place when major issues arise.

They also agreed to continue ongoing exchanges through bilateral meetings at major events such as the Mobility Show and the OICA (Organization of the International Automobile Manufacturers Association) General Assembly.

Regarding environmental regulations for automobiles, the two associations exchanged information and opinions on each country's carbon neutrality roadmap, fuel efficiency regulations, and distribution target systems.

In particular, JAMA stated that in a situation where the automobile industry is increasingly demanding innovation to achieve carbon neutrality in the transportation sector, it is necessary to carefully review the path to achieving carbon neutrality based on the premise of technological neutrality.It presented a roadmap to achieve carbon neutrality by actively utilizing internal combustion engine and hybrid vehicles using carbon-neutral fuels, along with electric and hydrogen vehicles.

KAMA introduced Korea's carbon neutrality scenario and policy trends related to electric vehicle battery recycling, and responded that continuous information exchange is necessary on realistic carbon neutrality implementation plans that take into account the industrial base and the policy directions of each country's government.

Regarding current trade issues, the two associations exchanged their views on the US Inflation Reduction Act (IRA), and reached a general consensus that the IRA could have a negative impact on the automobile industries of both countries.

The two countries agreed to actively discuss any future issues that could lead to cooperation.

KAMA expressed concern, saying, “IRA has the potential to violate the Korea-U.S. FTA and WTO regulations, and also runs counter to the spirit of the Korea-U.S. economic and security alliance.” JAMA Director Yasuo Aoki agreed with Korea’s concerns, predicting, “If the IRA is implemented, American consumers will have fewer options when purchasing electric vehicles, which could have a negative impact on American consumers as well.”

The two associations said they will discuss possible cooperation measures following the U.S. Treasury Department's announcement of battery component and mineral origin rules in March next year.

Regarding the plan to hold an exhibition in 2023, KAMA's Headquarters Director Seo Jang-seok requested much interest and participation in the '2023 Seoul Mobility Show' and '2023 H2 MEET' scheduled to be held at KINTEX in March next year, and JAMA decided to actively review this and actively encourage participation from member companies.

Meanwhile, KAMA Chairman Kang Nam-hoon emphasized, “It is important for the Korean and Japanese automobile industries to develop economic cooperation relations at the private level regardless of the political situations in both countries,” and added, “I hope that the two associations will continue to maintain a good relationship in the future.”