Last Year, Number of U-Turn Companies Reached Record High of 26... Investment Amount Increased by 22%

[Sejong=Asia Economy Reporter Kwon Haeyoung] The number of overseas expansion companies (U-turn companies) returning to Korea last year and their investment amount reached an all-time high.

According to the Ministry of Trade, Industry and Energy on the 11th, the number of companies returning to Korea in 2020 was 26, two more than the previous year, with a total investment scale increasing by 22% to 681.5 billion KRW. The number and investment amount of these U-turn companies represent the highest performance ever recorded in a single year.

Since the official statistics began in 2014, the cumulative number of companies returning to Korea totals 108.

Looking at investment amounts by company, the number of companies investing more than 10 billion KRW increased by five from the previous year to 18. The proportion of companies investing over 10 billion KRW among all U-turn companies also showed an increasing trend, reaching 69.2% annually.

The average investment amount per U-turn company was 26.21 billion KRW, up 15.3% from the previous year. The proportion of mid-sized companies among U-turn companies reached a record high of 34.6%.

The employment scale also reached an all-time high with a total of 1,820 employees, a 55% increase from the previous year. The number of companies employing more than 100 people increased by three to six, and the average employment size per U-turn company was 70, marking an increase for two consecutive years.

By industry, 18 leading companies returned to Korea, including six in the automobile sector, five in electrical and electronics, and three in metals, accounting for 69.2% of all U-turn companies. Notably, two companies producing key supply chain items such as secondary battery materials and rare earth permanent magnets for eco-friendly vehicles returned, contributing to supply chain stability.

The regions of return were led by Gyeongnam with eight companies, Chungnam with six, and Gyeongbuk and Daegu with three each.

The countries where U-turn companies originally expanded to were led by China with 18 companies, followed by Vietnam with four, and the United States with two.

An official from the Ministry of Trade, Industry and Energy stated, "The combined effects of changes in domestic and international environments, improvements in support systems, and active attraction activities have proven effective," adding, "Since U-turn companies have a significant impact on economic recovery, job creation, and supply chain stabilization, we will actively promote the expansion of returns of excellent domestic companies that have expanded overseas."

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