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S. Korea seeks to ease factory regulations for more reshoring

Industry 14:08 May 17, 2020

SEOUL, May 17 (Yonhap) -- South Korea is reviewing an option to ease regulations on the establishment of factories in the country's metropolitan area as part of efforts to woo more firms with overseas plants return home, the finance ministry said Sunday.

Currently, strict regulations are in place on the construction of new plants and their expansion in the metropolitan area, which the business community has cited as a hurdle.

This captured image from the Hyundai Motor Manufacturing Alabama homepage shows the carmaker's plant in the U.S. state. (PHOTO NOT FOR SALE) (Yonhap)

The ministry said it is reviewing measures to finance the cost of reshoring, provide tax incentives and subsidies to companies returning home.

Many nations around the globe and major companies are looking at reshoring as their plants and operations have been disrupted by the coronavirus pandemic

Factories in the United States, China and other major economies have been shut down because of lockdowns and border closures caused by COVID-19 outbreak.

South Korea has been working to bring firms back here, but many companies have been hesitant to do so, citing regulations and higher costs.

sam@yna.co.kr
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