SEOUL– A total of 24 South Korean companies returned home from their offshore operations last year, and their combined investment at home reached a record high of more than 1 trillion won (US$786.90 million), the industry ministry said Thursday.
The number of companies that relocated their factories from overseas fell to 24 in 2022 from the previous year’s 26, but their combined investment jumped 43.6 percent on-year to 1.11 trillion won, according to the Ministry of Trade, Industry and Energy.
South Korea implemented a law on supporting reshoring firms in 2014, and a total of 126 companies had since returned home by the end of last year, it added.
Of the 24 firms, nine, or 37.5 percent, were mid- and large-sized firms. It was the largest ever proportion, according to the ministry.
By sector, 11 were in the electric and electronic sector, followed by five firms from the auto industry and three in the machinery industry.
Fifteen firms returned home from China, followed by four from Vietnam and one each from the United States, Japan, Mexico, Indonesia and Taiwan.
The companies cited unfavorable business circumstances in foreign countries and the growth in demand in the domestic market as major reasons for their U-turns, according to the ministry.
The government has been working to expand incentives for reshoring companies, such as tax cuts, to stimulate the economy and create jobs here.
“This year, the government earmarked 57 billion won to help reshoring companies stabilize their businesses here and to encourage more to move back home,” the ministry said.
Source: Yonhap News Agency