Seoul: The government will amend existing policies to encourage South Korean companies operating overseas to return home as part of efforts to boost the country's industrial base amid the rise of global trade protectionism, the industry ministry said Friday. The Ministry of Trade, Industry and Resources unveiled the plan at a meeting of economy-related ministers, highlighting the need for corporate reshoring to promote regional investment and enhance domestic capabilities in advanced industries.

According to Yonhap News Agency, the number of Korean companies returning operations home has declined in recent years, from 23 in 2022 to 20 in 2024 and 14 last year. To counter this trend, the government plans to revise the Act on Support for Overseas Companies to Return to Korea. The revision aims to expand the scope of companies recognized as reshoring firms, encouraging more companies to open new businesses or make major investments within the country.

The ministry explained that companies establishing a mother factory in Korea while maintaining their overseas facilities will also qualify as reshoring firms. This provision specifically targets companies investing in advanced industries or new technologies. Furthermore, the government will overhaul the subsidy system to determine support for companies returning in advanced industries through negotiations rather than a fixed framework.

Additionally, efforts will be made to identify overseas Korean companies with strengths in advanced industries, artificial intelligence (AI), and supply chains that could potentially relocate operations back to Korea. The ministry emphasized the importance of such measures to strengthen domestic capabilities and ensure sustainable industrial growth.