CHINA-SOUTH KOREA: SOUTH KOREAN COMPANIES RELUCTANT TO MOVE OPERATIONS BACK TO ROK

South Korea’s ramped-up efforts to get companies to relocate home from China are failing to gain momentum even as the pandemic and U.S.-China trade tensions highlight the risks of over-reliance on China as a manufacturing base. Only 80 firms out of thousands with links in China have returned part of their operations home since South Korea introduced its U-Turn law in 2013 to stem the rising tide of overseas production, according to the Korea Institute for Industrial Economics & Trade data. Even after the government extended its reshoring subsidies to service-sector and IT firms earlier this year, the attractiveness of returning looks limited.







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