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  • Partial Amendment to the Act on Assistance to Korean Offshore Enterprises in Repatriation
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation : 2023-05-16
    • Opinion Submission Deadline : 2023-05-30
Reasons for Proposal

Reasons for Proposal

The current Act stipulates assistance, including financial support for repatriating enterprises, defines “repatriation” as newly establishing or expanding its place of business in Korea to produce products or services that are identical with or similar to those produced in the overseas place of business and stipulates that the State and local governments may provide assistance in obtaining loans and financing. 

However, due to the stringent requirements for being recognized as a repatriating enterprise, a few Korean offshore enterprises have returned to Korea, and as a result, job creation in the manufacturing sector was also insignificant. Therefore, it is pointed out that the current policy support has limitations in facilitating repatriation. Also, there are opinions that the State and local governments' assistance for repatriating enterprises is insufficient and that the regulation needs to be improved. 

Therefore, this amendment aims to facilitate the return of Korean offshore enterprises to Korea and contribute to the development of the national economy by expanding the scope of repatriation and the range of eligible repatriating enterprises and providing funds for infrastructure establishment.

Major Provisions

A. Recognize cases of converting overseas insourcing (overseas production) to domestic outsourcing (domestic consignment) by a Korean offshore enterprise as repatriation (Article 2 subparagraphs 3 and 4 newly inserted).

B. Expand the range of products and services eligible for repatriation to the products and services belonging to the Category in the Korean Standard Industrial Classification pursuant to the Statistical Act (Article 2 subparagraph 3).

C. Enable the State and local governments to provide funds necessary for the establishment of infrastructure, such as water supply, sewerage, electric facilities, and gas facilities (Article 12 (4) newly inserted)

D. Require the State and local governments to promptly process administrative matters related to repatriation for the stable settlement of repatriating enterprises that are eligible for assistance in establishing or expanding business sites (Article 12 (5) newly inserted).

E. Require the Minister of Trade, Industry and Energy to review the feasibility of the selection of repatriating enterprises eligible for assistance and take measures such as improvement (Article 17-2 newly inserted).

Major Provisions

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