Daegu City Offers Exceptional Benefits for Domestic Return Companies under 'Daegu-style Reshoring'

Joint Promotion Briefing by Daegu Chamber of Commerce and KOTRA at EXCO on the 30th

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongwook Park] The 'Daegu-style Reshoring' project, which offers unprecedented benefits to encourage overseas companies to return to local industrial complexes, is set to be launched in earnest.

Daegu City announced on the 10th that it will actively engage in attracting overseas companies back to the country, taking advantage of the global supply chain restructuring caused by the COVID-19 shock as an opportunity to revive the stagnant Daegu economy.

To this end, Daegu City explained that it has prepared a 'Daegu-style Reshoring' incentive package plan by supplementing the government's U-turn support policy and reflecting the voices from the field, including the Daegu Chamber of Commerce and Industry, KOTRA, and overseas companies.

First, as part of the dedicated consulting plan, if a company shows interest in returning to Korea, a dedicated TF team will be immediately activated to identify demand and intentions, providing integrated dedicated services throughout the entire process from overseas liquidation to domestic return investment. In particular, for overseas liquidation, consulting will be provided through local accounting firms linked with KOTRA, and up to 500 million KRW will be supported for the domestic transfer and installation costs of overseas facilities.

Additionally, to alleviate the initial investment cost burden, rental land will be secured mainly in the Daegu National Industrial Complex, where U-turn main industries (machinery, automobile, electrical, electronics, etc.) can move in, and priority settlement will be supported. Especially for large-scale investment companies, Daegu City will provide unprecedented subsidies up to 50% of the total investment amount, including free supply of rental land for 50 years. For small and medium-sized enterprises, effective incentives such as free supply of rental land for 10 years will be additionally supported.

Along with this, considering the high domestic labor costs, which are one of the biggest obstacles to returning to Korea, Daegu City will extend the government’s employment creation subsidy, which is supported for two years, by an additional two years on its own, compensating labor costs for a total of four years. To reduce housing costs for relocated employees, the city plans to support up to 1 billion KRW per company for dormitory construction or partial rental costs of accommodations according to the number of newly hired personnel.

Daegu City will finalize these plans at the main meeting at the end of this month after gathering opinions from various sectors at the 'Emergency Economic Measures Meeting Corporate Subcommittee' held on the 11th, and will launch an all-out campaign to attract domestic return companies.

On the 12th, at the American Chamber of Commerce networking event held at the Hyatt Hotel in Seoul (expected attendance of 150 companies and over 500 people), Daegu City officials, including the Director of the Job Investment Bureau, will participate as the sole local government to signal the start of external investment attraction activities. Subsequently, on the 30th at EXCO, Daegu City, the Daegu Chamber of Commerce and Industry, and KOTRA will jointly hold a 'Domestic Return Company Support Policy Promotion Briefing Session' to actively discover and attract companies wishing to return domestically.

Lee Seungho, Deputy Mayor for Economic Affairs of Daegu City, emphasized, "We will spare no support necessary to provide assurance and trust to companies considering returning to Korea," and added, "We will do our best to strengthen investment attraction for domestic return companies to achieve a 'Daegu Running Again, Re-Open Daegu.'"

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