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N.Jeolla Attracts U-turn Companies

North Jeolla Province is putting its upmost efforts to attract Korean companies overseas.

According to North Jeolla Province and Iksan city last Sunday, six machinery, jewelry and textile companies decided to move to Iksan and Gunsan at the end of July, following a group of jewelry companies which moved back to Iksan from China last year.

Out of 41 companies which plan to move back to Korea, North Jeolla Province will be home to 26 companies.

The companies moved overseas due to manpower shortage and high labor costs in Korea, however they decided to return because of worsened corporate conditions, including increased wages.

North Jeolla Province is attracting returning companies with settlement conditions, including association with current industries.

The province is also offering employment subsidy of KRW 6 million per person exceeding 20 employees, special site subsidy for 20 percent of site investment for advanced companies and investment subsidy for companies that invest in the region.

A law regarding returning Korea companies from overseas that offers various benefits, including tax exemptions and priorities given for industrial sites, passed the National Assembly last June, but companies agreed that more supports are required.

Companies suggested that supports on the government and National Assembly level are necessary.

They asked for tax support and deregulation to help companies which plan to return to Korea.

North Jeolla Province also requested budget to build a knowledge industry center and an industrial complex for returned companies to the Korea government.

Iksan mayor Lee Han-su noted that U-turn companies (those returned to Korea from overseas) are standing at the crossroads of life and death, requesting more support from the Korean government as the city is putting its upmost efforts to help early settlement of the companies.

Governor of North Jeolla Province Kim Wan-joo also said that the province is an emerging mecca for U-turn companies and promised that the province will not spare its efforts for settlement and success of the companies.

North Jeolla Province expect it will see more than 100,000 new jobs if about 300 companies move in to the province by 2016.

Source Text

Source: Yonhap News (Aug. 18, 2013)

** This article was translated from the Korean.