By Lee Tae-hoon
Staff Reporter
A lawmaker has proposed a plan to encourage companies operating abroad to return to Korea.
Rep. Kim Seong-jo of the governing Grand National Party submitted three revision bills Thursday to the National Assembly that would offer a set of financial and administrative incentives to homecoming enterprises settling outside the capital region.
The capital region refers to Seoul, Incheon and Gyeonggi Province.
The proposed incentives include a full return of corporate income taxes for the first five years, as well as an exemption from real estate acquisition, registration and transfer taxes.
According to a 2009 survey of 365 domestic companies operating offshore, 35 (9.8 percent) wanted to relocate their businesses to Korea.
The survey found that a considerable number of enterprises in China and Vietnam were mulling over a return to Korea due to major changes in foreign policies and labor markets.
"The number of Korean firms to make a 'U-Turn' is expected to sharply increase as the business environment abroad has rapidly deteriorated after the global financial crisis," Kim said. "However, they are still reluctant to return home due to a dearth of financial and administrative support here."
The lawmaker noted that Japan and Taiwan approved similar legislative bills in 2000 and 2006, respectively, in an effort to boost their local economy by bringing back domestic companies operating abroad.