The Peninsula

Announcing KEI’s New Korean IRA Investment Map

The Inflation Reduction Act (IRA) was signed into law on August 16, 2022. It is the most comprehensive climate law passed by the US government, committing over $400 billion to clean economy initiatives through a mix of tax credits and funding opportunities.

The law has initiated a wave of green investment across the United States by encouraging the production of solar panels, wind turbines, and electric vehicle (EV) batteries while also providing up to $7,500 in consumer subsidies for the purchase of EVs. The US Department of Energy estimates that such investment—together with programs from the Bipartisan Infrastructure Law (BIL)—will reduce net US greenhouse gas emissions by 40 percent below their 2005 levels by 2030.

With the United States being the world’s third largest EV market, international companies have poured into the country to take part in the manufacturing renaissance spurred by the IRA, planting billions of dollars into new factories and supporting facilities across a range of green industries.

Altogether, our analysis suggests that IRA incentives for major Korean investment in EV plants, battery factories, solar panel and wind turbine facilities, and auto parts facilities supporting EV manufacturing have resulted in over $55 billion in commitments, which is expected to create roughly 70,000 high-paying jobs.

Explore major Korean investments spurred by the IRA across US states on our new interactive map here.

Tom Ramage is an Economic Policy Analyst at the Korea Economic Institute of America. The views expressed here are the author’s alone.

Photo from Shutterstock.

KEI is registered under the FARA as an agent of the Korea Institute for International Economic Policy, a public corporation established by the government of the Republic of Korea. Additional information is available at the Department of Justice, Washington, D.C.