Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy (MOTIE) announced today that the enforcement of the following two amended public notices—the amended notice on support for reshoring companies (“Reshoring Notice”) and the amended notice on local government entities’ state funding criteria for attracting reshoring companies (“Reshoring Subsidy Notice”)—begins August 30 as part of follow-up to the Reshoring Company Support Strategy 2.0 (announced May 7) to invigorate reshoring in advanced industries.

First, the amendments impose a higher cap on state funding for reshoring companies in industries categorized as “National Strategic” and “National High-Tech Strategic Technology.” Companies reshoring to Korea’s capital region will receive up to KRW 20 billion (up ₩5 billion), while those reshoring to non-capital regions will receive up to ₩40 billion (up ₩10 billion). 

Second, newly added to the list of businesses eligible for the exemption of overseas subsidiary restructuring requirements are companies manufacturing items of national security concern, as well as those opting to reshore through cooperation with domestic buyers. 

Third, with regard to reshored companies in advanced industries, the amended public notices have removed the restriction on making new overseas investments subsequent to receiving subsidies and being granted the exemption of abovementioned overseas restructuring requirements. 

Fourth, the amendment provides subsidy priority to high-tech businesses that move into National High-Tech Strategic Industry and MPE (materials, parts, equipment) specialization complexes.

Also, the reshoring of two or more companies will be recognized as joint reshoring as long as they have the same overseas business location—even when domestic locations differ— receiving up to a 5-percentage point increase in subsidy rates.

According to MOTIE, a total of 13 Korean companies have reshored this year, and the public notice amendments are anticipated to spur further reshoring of firms in advanced industries, such as semiconductors, displays, and secondary batteries.