KG Dongbu Steel has decided to liquidate its plant in Jiangsu, China, and return to South Korea, according to reports by the Korean media. The steelmaker plans to invest KRW155bn ($140.56mn) over three years in Dangjin, South Korea to relocate the plant.
Amid the spread of COVID-19, the South Korean government is promoting the reshoring of companies. It has even allocated KRW30bn ($27.19mn) for incentivizing Korea-based companies to shift their bases back home. The government will also bear around 44pc of returning costs, and those for plant site acquisition, plant construction.
Earlier in May, Aju Steel, headquartered in Gumi, North Gyeongsang Province, decided to liquidate its Philippine plant and produce steel sheets for electronics and dry materials in Gimcheon, North Gyeongsang Province. Besides these, the Korea Iron & Steel Association indicated that two-three mid-sized steelmakers are in the process of shifting plants to the country and avail the benefits of the scheme.