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News Briefing
Government to Strengthen Support for Re-shoring Companies in Advanced Industries
Jun 2024
On May 7, the Ministry of Trade, Industry and Energy (MOTIE) announced its “Reshoring Company  Support Strategy 2.0”. The Korean government plans to strengthen support for reshoring companies by lowering eligibility requirements and standards and increasing incentives in advanced industries amid the recent realigning of supply chains and rising global protectionism.
 
The strategy aims to lower the eligibility bar to provide wider support. For one, reshoring firms in the retail industry will be eligible for government support, and investing reshored capital in Korea will be recognized as a type of reshoring investment.

National strategic technologies, advanced strategic technologies, future automobile parts and products will be eligible for subsidies and exemptions to restructure. 

The Korean government significantly expanded the budget for subsidies available to reshoring companies, increasing to KRW 100 billion this year from KRW 57 billion in 2023. It also plans to raise the subsidy cap for reshoring investment in national and advanced strategic technologies.

Moreover, the type of occupations eligible for E-7 visas will be expanded to eight categories from one. Also, priority will be placed on supporting businesses entering into a national high-tech strategic industry and materials, parts, equipment (MPE) specialization complexes.