Experts gathered at the National Assembly to discuss the need for reshoring policies in South Korea. Reshoring involves bringing back outsourced operations from overseas to support high-tech Korean companies. This is seen as crucial for the country’s economic security, especially in light of the United States-China conflict and the supply chain disruptions caused by the COVID-19 pandemic.
However, experts have raised concerns about the current reshoring policies, which focus too much on small and medium-sized companies and manufacturing industries. The subsidies provided for reshoring are also limited, with a cap of 15 billion won for companies in the Greater Seoul region and 30 billion won for companies outside Seoul.
These limited subsidies deter high-tech companies from bringing back their overseas operations, as their investments can reach trillions of won. Only a quarter of the companies that withdrew their businesses from overseas last year were high-tech companies. Increasing support for high-tech industries to reshore their operations would not only contribute to the country’s economic growth but also lead to a significant increase in employment.
According to the Federation of Korean Industries, if high-tech companies commit to reshoring their operations, it could boost domestic production by 14 trillion won in sectors such as automobiles, electricity, and electronics. This would create around 16,000 new jobs.
In conclusion, experts believe that strengthening reshoring policies and providing more incentives for high-tech companies to bring back their overseas operations will have significant benefits for the Korean economy and employment rate.
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