100 Billion KRW Invested to Support 'U-turn' Advanced Companies

The government has decided to invest 100 billion KRW this year to support advanced industry companies returning to Korea.

On the 23rd, Park Deok-yeol, Director of Investment Policy at the Ministry of Trade, Industry and Energy, visited the Cheongju plant of Simtek, a semiconductor parts manufacturing company returning to Korea (U-turn), toured the production facilities and planned investment spaces, listened to on-site difficulties, and explained government support programs. Selected as a U-turn company in May 2023, Simtek is an advanced technology company mainly producing printed circuit boards (PCBs) for semiconductors and mobile devices.

The Ministry explained that to promote U-turn investments by high value-added companies in advanced strategic industries and core supply chain sectors, it has allocated an investment subsidy budget of 100 billion KRW this year, about twice the 57 billion KRW from last year. The corporate tax reduction period has also been extended from 7 years to 10 years.

In particular, U-turn companies possessing national strategic and advanced strategic technologies such as semiconductors, displays, secondary batteries, and vaccines will receive investment subsidies with a basic subsidy rate of 45% (previously 21%) when investing in non-metropolitan areas, and 26% (previously unsupported) when investing in metropolitan areas.

Director Park said, "U-turn investments in advanced industries are very important for revitalizing the regional economy through investment and employment, as well as securing export momentum," adding, "We will continue to actively support these companies' return to Korea."

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