Public-Private Joint Effort to Attract Returning Companies... "Need to Expand Subsidies and Ease Environmental Regulations"

Ministry of Industry Launches 'Public-Private Joint U-Turn Support Team' and Signs Business Agreement
Ministry of Industry: "Close On-Site Support for Corporate Tax and Smart Factory Assistance Is Crucial"

[Asia Economy Reporter Moon Chaeseok] The public and private sectors have joined forces to support the reshoring of Korean companies operating overseas.

The Ministry of Trade, Industry and Energy and the Korea Chamber of Commerce and Industry will hold the launch ceremony of the "Public-Private Joint U-Turn Support Team" on the 28th at 3:30 PM, chaired by Na Seung-sik, Director General of Trade and Investment at the Ministry, and Woo Tae-hee, Executive Vice President of the Korea Chamber of Commerce and Industry.

The support team is a consultative body for U-turn support consisting of the Ministry of Trade, Industry and Energy, the Korea Chamber of Commerce and Industry, metropolitan local governments, the Export-Import Bank, the Korea Trade Insurance Corporation, industry associations, and KOTRA.

Established to emphasize the importance of U-turns for stabilizing supply chains in key industries amid the COVID-19 pandemic, the team aims to mobilize all public and private capabilities to establish a system for attracting and supporting reshoring.

Participating organizations will sign a "Public-Private Joint U-Turn Support Team Memorandum of Understanding (MOU)" at the launch ceremony and begin full-scale activities.

Under the support team, a "Working Support Team" and "Project-specific Attraction Task Forces (TF)" will be operated to discover major U-turn projects.

The Ministry of Trade, Industry and Energy plans to emphasize that Korea is an optimal location for domestic and foreign companies to invest as a "transparent and safe manufacturing leader."

Director Na stated, "The government has prepared measures to expand U-turn support, strengthening corporate tax cuts and smart factory support. Now, it is important to provide close on-site support so that companies can effectively utilize these measures."

Earlier, on February 20, the government introduced corporate tax reductions for U-turns involving business site expansions, prioritized and expanded support for smart factories, and launched a facility investment support program worth 4.5 trillion won (Financial Services Commission).

Director Na believes, "The support team will faithfully perform its role as a hub for U-turn activation by proactively discovering projects, promoting awareness, and serving as a window for institutional improvements through public-private cooperation."

Support institutions and industry associations attending the launch ceremony plan to propose to the government the need to improve the U-turn system by easing U-turn support requirements, expanding incentives such as subsidies, and relaxing regulations including environmental rules.

Director Na expressed that now is a time when the need for institutional improvements to activate U-turns is greater than ever, and that field opinions will be actively reflected in U-turn policies.

He also plans to encourage each company to conduct in-depth internal discussions to stabilize supply chains and to urge the industry to proactively lead the activation of U-turn investments.

Executive Vice President Woo intends to convey his commitment to actively strive for the creation of meaningful successful cases of domestic return.

Meanwhile, LG Electronics and Donggu Corporation attended the event and requested institutional support from the government to activate corporate U-turns.

Previously, on February 24, LG Electronics announced the first U-turn support plan for partner companies among large corporations, including guaranteed order volumes, low-interest loans, and consulting support.

This content was produced with the assistance of AI translation services.