Support for Reshoring Companies

Reshoring regions : Jeollabuk-do(18), Gyeonggi(18), Chungcheongnam-do(18), Gyeongsangbuk-do(17), Gyeongsangnam-do(16), Busan(10), Incheon(7), Daegu(5), Chungcheongbuk-do(5), Others(3∼1)
Business categories : (1위) Jewelry(55.6%), (2위) Textile·Electronics(33.3%), Others(11.1%)
No. of Reshoring Companies (18 in total) : Jewelry(10), Textile(2), Electronics(4), Chemical(1), Machinery(1)

Designation of Iksan Fashion Jewelry Special Zone (July 2018) and Acquisition of Jewelry Internationally-accredited Test and Certification Body* (Mechanical test, Chemical test) (March 2020)
* As the first Jewelry Testing Certification Body in Korea, it shores up reliability and competitiveness of tenant companies

Cover 10% of investments for companies financing over KRW100 million and hiring 5 or more full-time employees
※ Provide each enterprise with incentives worth up to KRW30 billion
Provide wage subsidies: KRW7.2 million per person annually (for 2 years), covering up to 100 new staffs
Allow tax deduction: 50~100% of income / corporate tax for up to 7 years, 50~100% customs duties
Allow private purchase contract legally acceptable when acquiring public properties and lease (for up to 50 years), Allow deductions on tax and rent paid for lease (up to 100%)
Give priority to be incentivized to a business which renovates abandoned factories inside the national industry clusters and facilitates production plants within the provincial districts

<Summary of the currently available incentives for reshoring companies>

Tax break (densely populated capital areas excluded)
- (corporate tax/ income tax) lower 50~100% of tax liability for up to 7 years targeting candidates newly establishing or building out production plants in Korea)
- (customs duties) subtract up to 100% of taxable income for an investor accommodate facilities
Subsidies to facilitate investment into local districts (non-capital area): 9~40% of land values, 6~24% of facility costs (within the budget limit up to KRW10 billion)
Wage subsidies(Mid-sized & small enterprises): KRW7.2 million per person annually (for two years), covering up to 100 new staffs
Manpower support services: employment permit system(EPS), E9 VISA
Smart factory: increase threshold for financial incentives for reshoring companies (for candidates newly establishing facilities: KRW100mln → KRW150mln, for investors further advancing supply system and manufacturing practices: KRW150mln → KRW200mln)
Loan services (corporate financing services): support policies worth KRW4.5 trillion for candidates investing in facilities, corporate guarantee for reshoring companies
R&D: Give priority to reshoring companies for R&D incentives