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South Korea encourages companies to build plants abroad

Staff writer ▼ | December 19, 2015
The government has decided to encourage domestic companies to head overseas and build production plants, even at the risk of endangering jobs in Korea.
South Korea construction workers
Industry   Made by Korea instead of Made in Korea
For years, policymakers have urged local manufacturers to expand production facilities here to create jobs rather than go overseas. But with Korea's rising labor costs and other unfavorable business conditions, the government has no choice but to give up its "Made in Korea" policy drive and adopt the new "Made by Korea."

While announcing the 2016 economic policy plan, the Ministry of Strategy and Finance and other ministries said Wednesday they will build industrial complexes in China, Vietnam, Myanmar, Indonesia and other emerging Asian economies exclusively for domestic companies.

Beginning in June, Land & Housing, the state-run infrastructure developer, will be mobilized to build industrial complexes abroad, not only for large local companies, but also for small and medium enterprises.

The Korea Business Center will be set up in New York, Beijing and Ho Chi Minh City to provide legal, accounting and labor issue-related consulting services to Korean firms.