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Support for Reshoring Companies

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Current Status of Reshoring Companies in Jeollabuk-do

  • The Number of Reshoring Companies : 18 companies(Out of 126 across the country)
    • 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
Provincial government’s support policies
  • 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