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[Monitor] Only 3% of Korean firms consider reshoring despite overseas supply disruptions

While more than half of South Korean firms suffered operation hiccups due to disruptions in their supply chains due to the COVID-19 spread, only 3 percent said they would consider reshoring as an alternative, a survey conducted by the Federation of Korean Industries showed.

The survey also showed that even in the case of radical changes in the global supply chains, one-third of the companies had no countermeasures planned.

Among the respondents, 56.7 percent said they suffered from the pandemic that hurt the supplies of parts and materials. The survey also showed that 48.4 percent said they anticipated reorganization of global supply chains in the future, although 37.4 percent of them said they had alternative plans in place.

Only 3 percent of the respondents said they may opt for reshoring. Most cited the need for wider tax benefits and R&D subsidies and eased labor-related laws to attract overseas plants from returning home.