Minister Kim Jonggwan Visits Kolmar Korea, Announces "Comprehensive Overhaul of U-turn Policy" to Drive Domestic Investment
by Kang Nahum
Published 27 Apr.2026 09:30(KST)
U-turn Companies Meet at Kolmar Korea, the First U-turn Firm
Government to Expand Eligibility and Overhaul Subsidy System
"In the Era of Supply Chain Competition, Reshoring Is a Strategic Move"
Kim Jonggwan, Minister of Trade, Industry and Energy, has announced a comprehensive overhaul of the system for "U-turn" companies. Amid the global reorganization of supply chains and the intensification of protectionism, the government aims to elevate reshoring as a central pillar of its industrial strategy.
On April 27, during a meeting with U-turn companies held at Kolmar Korea, a cosmetics manufacturer based in Sejong City, Minister Kim stated, "We are now in an era where the competitiveness of companies and nations is determined by how stable their supply chains are. The government will actively support domestic reshoring and local investment so that these become the most reasonable and attractive choices for companies."
He further noted, "Since the enactment of the Act on the Return of Overseas Enterprises to Korea (the U-turn Act), 159 companies have invested approximately 7 trillion won and created 8,000 jobs. These achievements were made possible thanks to the companies gathered here today. In particular, Kolmar Korea, which became the first U-turn company of the year and decided to invest 180 billion won in a local region, will serve as a leading example of productivity innovation through process automation."
However, Minister Kim also acknowledged that current U-turn policies have not fully adapted to the rapidly changing investment environment. In reality, while global protectionism is on the rise and geopolitical risks from the Middle East are increasing supply chain uncertainty, existing policy frameworks-such as requirements for identical product manufacturing-have limited eligibility for support, leading to stagnation in new reshoring cases.
On-site, demands for institutional reform continued. Companies pointed out that it is difficult to be recognized as a U-turn company when shifting to new business areas or returning with a focus on research and development investment, and that requirements to maintain existing sites for a set period reduce investment flexibility. Opinions were also raised that employment standards should be adjusted to reflect the spread of automation.
In response, the Ministry of Trade, Industry and Energy will proceed with reforms that revamp the overall framework of the U-turn policy. The main components include: expanding the scope of companies recognized as U-turns; easing and diversifying requirements for subsidy support; and strengthening support for attracting and executing strategic investments. In particular, support will be differentiated for local investment and advanced strategic industries, and dedicated project managers will be assigned to provide comprehensive support throughout the entire investment process.
The government plans to finalize and announce the improved U-turn policy soon, after gathering opinions from the industry and consulting with relevant ministries.
Minister Kim stated, "We will completely revise the system so that U-turn investments can revitalize local regions and core capabilities can be accumulated domestically. We will actively reflect the feedback raised today and swiftly push forward with improvements to the related policies."
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