KOTRA Signs Business Agreement with SanDanGong and LH to Support Domestic Returning Companies

[Asia Economy Reporter Kiho Sung] On the 26th, KOTRA signed a business agreement at its headquarters in Yeomgok-dong, Seoul, with the Korea Industrial Complex Corporation (KICOX) and the Korea Land and Housing Corporation (LH) to support domestic return companies.

KOTRA, which has been supporting overseas companies returning to Korea, established a collaborative system with KICOX and LH to assist returning companies in selecting domestic business locations. KICOX is responsible for managing industrial complexes and domestic return investment subsidies, while LH provides various sites including industrial complexes.

Through this business agreement, KOTRA, KICOX, and LH will jointly provide customized location consulting for returning companies. Returning companies facing difficulties in site selection will be able to receive timely information based on region, scale, purpose, and industry. Additionally, the three organizations will jointly discover potential returning companies through information exchange and identify challenges faced by resident companies to utilize in government policy improvements.

Recently, the government established a notification for return subsidies separate from local investment promotion subsidies, significantly increasing the limit to 30 billion KRW per business site and 60 billion KRW per company. The requirement for maintaining at least 20 regular employees, which had been a burden for companies, was also abolished. Furthermore, incentives for returning companies have been greatly expanded, including corporate tax reductions for expansion projects and increased support for smart factories.

Interest in returning to Korea among overseas companies is also rising. This year, the number of returning companies reached a record high of 22. Among them, 16 companies (73%) are in the materials, parts, and equipment sector. The number of mid-sized companies doubled to six compared to last year, diversifying the industries and scales of returning companies.

Incentives for process automation and smartization have also been institutionally established, and returning companies are expected to reduce production costs. If they actively utilize the Korea brand, which has been enhanced by K-quarantine, the advantages of domestic production are expected to be maximized.

Kwon Pyung-oh, President of KOTRA, stated, “The three organizations have joined forces to provide location support, a decisive factor for domestic return. We will also expand cooperation among institutions in areas such as global market entry for industrial complex resident companies and attracting foreign investment.”

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