Release by the U.S. Government of IRA Guidance on FEOC

Lee & Ko has advised the Korean Government and global battery businesses on the proposed guidance on the interpretation of “foreign entity of concern” (FEOC) requirements for Section 30D clean vehicle credit of the Internal Revenue Code, released by the U.S. Department of Energy and the Department of the Treasury on December 1, 2023.

Considered one of major achievements of the Biden Administration, the Inflation Reduction Act of 2022 has profound impacts on both exports to and investments in the United States by Korean battery manufacturers with competitive edges in the global market. Lee & Ko’s prompt advices help Korean companies considering cooperation with Chinese counterparts, who may fall within the definition of FEOCs, to develop and operate strategies that can satisfy IRA requirements.