The government is set to promote local investments by returning companies and foreign investment firms. Starting next year, the subsidy system for returning companies will undergo a complete overhaul, with increased support for investments in non-capital regions and advanced industries.
On August 13, Kang Gam-chan, head of the Trade and Investment Bureau at the Ministry of Trade, Industry and Energy, visited Daegu to assess the investment status of returning company Daedong and foreign investment firm Valeo Mobility Korea, as well as to listen to the companies' concerns.
Daedong, a mid-sized agricultural machinery manufacturer selected as the third returning company this year, has recently decided to liquidate its overseas operations and invest approximately 80 billion won to expand its factory in Daegu.
The company plans to introduce an artificial intelligence (AI) factory in the expanded facility and establish production lines dedicated to AI-based autonomous tractors.
During a subsequent meeting, representatives from Daedong, Guyeong Tech, Iljin, and Isu Petasys, among other returning companies in the Daegu and Gyeongbuk regions, attended. They requested support to ensure that investments proceed smoothly amid increasing external uncertainties, such as global supply chain restructuring and the rise of protectionism.
In response, the Ministry of Trade, Industry and Energy plans to accelerate follow-up measures to the 'Reestablishment and Promotion Plan for Returning Companies' announced in May. A revised enforcement decree for the Returning Companies Act (Domestic Return Support Act), which was announced for legislative notice last month, is expected to be implemented as early as October after going through the necessary procedures.
Following a revision of the guidelines within the year, the subsidy system for returning companies will be completely revamped starting next year. A 'negotiation' method will be introduced for large-scale and strategic investments, and support will be differentiated based on factors such as investments in non-capital regions, youth-centered employment, and advanced strategic technologies. The existing fixed limit method will be changed to a maximum subsidy ratio method.
Kang also visited Valeo Mobility Korea, a foreign investment company. Valeo Mobility Korea, established by the French automotive parts manufacturer Valeo, produces and develops advanced driver-assistance system (ADAS) components and control systems at its production plant in Daegu and R&D center in Gyeongsan.
Valeo Mobility Korea plans to collaborate with local universities, companies, and research institutions to promote the localization of key components for future vehicles and to develop Korea as a core production hub for ADAS in Asia, thereby expanding exports.
Kang stated, "In response to the spread of AI and external uncertainties, strategic investments by companies have become crucial, and local areas must become the center of these investments. We will provide comprehensive support to ensure that capable companies can invest and grow in local regions."
On August 13, Kang Gam-chan, head of the Trade and Investment Bureau at the Ministry of Trade, Industry and Energy, visited Daegu to assess the investment status of returning company Daedong and foreign investment firm Valeo Mobility Korea, as well as to listen to the companies' concerns.
Daedong, a mid-sized agricultural machinery manufacturer selected as the third returning company this year, has recently decided to liquidate its overseas operations and invest approximately 80 billion won to expand its factory in Daegu.
The company plans to introduce an artificial intelligence (AI) factory in the expanded facility and establish production lines dedicated to AI-based autonomous tractors.
During a subsequent meeting, representatives from Daedong, Guyeong Tech, Iljin, and Isu Petasys, among other returning companies in the Daegu and Gyeongbuk regions, attended. They requested support to ensure that investments proceed smoothly amid increasing external uncertainties, such as global supply chain restructuring and the rise of protectionism.
In response, the Ministry of Trade, Industry and Energy plans to accelerate follow-up measures to the 'Reestablishment and Promotion Plan for Returning Companies' announced in May. A revised enforcement decree for the Returning Companies Act (Domestic Return Support Act), which was announced for legislative notice last month, is expected to be implemented as early as October after going through the necessary procedures.
Following a revision of the guidelines within the year, the subsidy system for returning companies will be completely revamped starting next year. A 'negotiation' method will be introduced for large-scale and strategic investments, and support will be differentiated based on factors such as investments in non-capital regions, youth-centered employment, and advanced strategic technologies. The existing fixed limit method will be changed to a maximum subsidy ratio method.
Kang also visited Valeo Mobility Korea, a foreign investment company. Valeo Mobility Korea, established by the French automotive parts manufacturer Valeo, produces and develops advanced driver-assistance system (ADAS) components and control systems at its production plant in Daegu and R&D center in Gyeongsan.
Valeo Mobility Korea plans to collaborate with local universities, companies, and research institutions to promote the localization of key components for future vehicles and to develop Korea as a core production hub for ADAS in Asia, thereby expanding exports.
Kang stated, "In response to the spread of AI and external uncertainties, strategic investments by companies have become crucial, and local areas must become the center of these investments. We will provide comprehensive support to ensure that capable companies can invest and grow in local regions."
* This article has been translated by AI.
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