Global Reshoring Era: Opportunities Gyeongbuk Manufacturing Must Seize

A tectonic shift is occurring in global supply chains. According to CBRE's 2025 report, 82% of global manufacturers answered they have relocated or are relocating production facilities to their home countries or neighboring countries. This is a 27 percentage point jump from 55% in 2023 in just two years. It's a structural change created by the pandemic, geopolitical risks, and trade wars.

Korea is no exception to this trend. According to the Ministry of Trade, Industry and Energy, consultations for domestic repatriation by overseas companies increased 9% to 160 cases in 2025. However, actual repatriations were only 20 companies. Why does consultation increase while execution doesn't follow? Permit complexity, site securing difficulties, and manpower supply problems are the three barriers.

Gyeongbuk is in the most advantageous position in this reshoring wave. First, manufacturing ecosystems for semiconductors, automobiles, steel, and nuclear power are already established. Second, 3.55 million㎡ of additional industrial land will be supplied by 2035 according to the 5th Industrial Complex Master Plan. Third, access to an integrated labor market of 1.09 million + 490,000 + 250,000 population is possible through the Sea of Dawn Alliance with Ulsan and Pohang.

CBRE identified skilled labor (1st), supply chain proximity (2nd), and energy costs (3rd) as the most important location requirements for reshoring companies. Gyeongju Oedong Industrial Complex meets all three. It's directly connected to Hyundai Motor Ulsan plant's Tier 1-3 supply chain, shares the labor force pool of Ulsan's 1.09 million population, and enables stable power supply due to proximity to KHNP nuclear plants.

The government is also strengthening reshoring support. According to the 'Act on Supporting Domestic Return of Overseas Companies', returning companies receive 100% income and corporate tax exemptions for 5 years, followed by 50% exemptions for 2 years. Location subsidies, facility investment subsidies, and employment subsidies are also provided separately. Additional incentives for non-metropolitan returns mean Gyeongbuk can receive double benefits.

For companies considering reshoring, now is optimal timing. By preparing permits in advance when industrial land supply is expanding, you can secure both sites and government support simultaneously. Particularly, semiconductor components, automotive electronics, and secondary battery materials sectors have high synergy with Gyeongbuk's existing industrial ecosystem, making them top priority review targets.