S. Korea Announces Subsidies for Companies Reshoring Production Facilities Back Home.

Seoul: The industry ministry on Tuesday reaffirmed its commitment to support businesses reshoring their operations from overseas through subsidies and additional incentives. The announcement was made during the opening ceremony of a production facility by auto parts manufacturer Hwashin Co., which had earlier decided to bring its production line in China back to South Korea. According to Yonhap News Agency, Hwashin, a supplier to major carmakers, including Hyundai Motor Co. and Kia Corp., received subsidies of 40 billion won (US$28 million) for constructing the line in Yeongcheon, 246 kilometers southeast of Seoul. "The government plans to support the return of businesses in cutting-edge industries and key areas of the supply chain," said Kim Dae-ja, a senior official at the Industry Ministry. "We also plan to proactively identify potential challenges faced by returning companies and address them," Kim added. In May, the government announced a blueprint to support South Korean businesses relocating their ov erseas production facilities back home. As part of such efforts, the government pledged to provide up to 40 billion won in subsidies for businesses relocating to areas outside the greater Seoul area, an increase from the previous ceiling of 30 billion won. The total investment pledged by reshoring companies reached 1.13 trillion won in 2023, marking a 47 percent increase from 771.5 billion won recorded in 2021, ministry data showed.