The South Korean government is set to boost its investment in companies returning to the country (U-turn) in advanced strategic industries and crucial supply chain sectors. The Ministry of Trade, Industry and Energy plans to inject 100 billion won into these high-tech ventures this year, with a 75% increase from the previous year’s investment.
Within the incentive program, the corporate tax reduction period will undergo an extension from 7 to 10 years, along with a subsidy reaching up to 45% of the U-turn investment.
To actively support the initiative, Investment Policy Director Park Deok-yeol from the Ministry of Trade, Industry and Energy visited Simmtech Co., Ltd.’s Cheongju factory, a semiconductor component manufacturing company, returning to Korea. Simmtech
On January 23, During the visit, he toured the production facilities, assessed the investment space, and engaged in discussions to understand on-site challenges. Simmtech, recognized as a U-turn company in May 2023, specializes in producing printed circuit boards (PCBs) for semiconductors and mobile devices.
Park also provided insights into the government’s support system. The government is intensifying its support for these high-value-added enterprises in advanced strategic industries and pivotal supply chain sectors to catalyze their U-turn investments.
Director Park emphasized the importance of U-turn investments in high-tech industries for the local economy’s revitalization, encompassing investment, employment, and the fortification of export capabilities.
He stated, “U-turn investment in high-tech industries is very important for revitalizing the local economy, including investment and employment, and securing export engines.” He committed the ministry’s active support for the return of such companies to Korea, highlighting their key role in contributing to economic rejuvenation and global competitiveness.
In a boost to incentivize U-turn investments by high-value-added companies in high-tech strategic industries and essential supply chain sectors, the government has considerably increased the investment subsidy budget for 2024 which is a notable rise from the previous year’s 57 billion won.
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