- Registration date2024-05-07
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The Korean government plans to raise overall support for reshoring companies by lowering eligibility requisites and standards, while increasing incentives for reshoring firms in advanced industries.
Trade, Industry and Energy Minister Dukgeun Ahn held a meeting with 10 reshored companies on May 7 to discuss support measures, where he announced the ministry’s “Reshoring Company Support Strategy 2.0” and gathered companies’ opinions.
In view of the recent supply chain realignments and rising global protectionism, the Ministry of Trade, Industry and Energy (MOTIE) established support strategies based on opinions provided from relevant industries, experts, and ministries to address the increasing need for stimulating advanced industries’ reshoring.
The strategy aims to lower the eligibility bar to provide wider support. For one, reshoring firms in the retail industry will be eligible for government support and investing reshored capital in Korea will be recognized as a type of reshoring investment.
National strategic technologies, advanced strategic technologies, future mobility parts and products are to be added to the list of business sectors exempted of foreign subsidiary restructuring requisites. Companies subsidized with above restructuring exemptions are to be limited in making overseas investments for a minimum of only one year, instead of the current two.
This year, MOTIE significantly enlarged the reshoring company subsidy budget, up from last year’s KRW 57 billion to 100 billion won. MOTIE also plans to raise the subsidy cap for reshoring investment in national and advanced strategic technologies.
Seven more occupation types are to be added besides the one type currently eligible for the E-7 visa for reshoring companies. Businesses moving into the national high-tech strategic industry and MPE (materials, parts, equipment) specialization complexes will receive preferential support as well.
In 2023, the number of Korean reshoring companies reached 22, with more than 20 firms reshoring every year since 2020. Reshoring companies’ investment plan entered the 1 trillion won thresholds for the second consecutive year in 2023.