Korea's automobile exports could drop 4.2 percent to 2.1 million units next year, if the U.S. refuses to offer tax benefits for consumers purchasing Korean electric vehicles (EVs) manufactured outside of North America, in accordance with the Inflation Reduction Act, the Korea Automotive Technology Institute (KATECH) said Monday. KATECH said in its report that the Korean automobile industry is expected to face declines in domestic consumption, exports and production in 2023, despite a highly probable increase in global demand.