A person charges Tesla's EV car at its charging station in Va., U.S., May 7. EPA-Yonhap

Korea is closely monitoring potential changes to U.S. policies on electric vehicles (EVs) under the incoming Donald Trump administration, but no change has been confirmed, the industry ministry said Friday.

The Ministry of Trade, Industry and Energy made the statement after a Reuters report suggested that Trump may be seeking to end the up to $7,500 consumer tax credit program for EV purchases, a key component of President Joe Biden's Inflation Reduction Act (IRA).

"The government is closely monitoring policy trends in the new U.S. administration. The abolition of the IRA is an issue that has not been confirmed," the ministry said in a released statement.

"The government has been maintaining close communication with businesses and reviewing various scenarios to prepare for uncertainties," it added, noting it will also continue close consultations with the U.S.

Major Korean battery makers, meanwhile, traded sharply lower on the main bourse amid concerns that the new Trump administration may proceed with ending the tax credit program.

As of 2:51 p.m., leading battery maker LG Energy Solution had nosedived 9.24 percent, while its local rival Samsung SDI had dropped 5.86 percent, both far underperforming the benchmark Korea Composite Stock Price Index's 0.39 percent increase. (Yonhap)